Document:

exv10w74

 

Exhibit-10.74

FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT

     THIS FIFTH AMENDMENT TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of
August 31, 2006, is entered into among WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN), a California
corporation formerly known as Congress Financial Corporation (Western) (“Agent”), as
administrative and collateral agent for the Lenders party to the Loan Agreement (as defined below)
from time to time (“Lenders”), WACHOVIA CAPITAL FINANCE CORPORATION (WESTERN), a California
corporation formerly known as Congress Financial Corporation (Western), as a Lender
(“Wachovia”), ROCKFORD CORPORATION, an Arizona corporation (“Borrower Agent”), and
AUDIO INNOVATIONS, INC., an Oklahoma corporation (“AII” and together with Rockford,
collectively, “Borrowers”).

RECITALS

     A. Agent, Wachovia, Wachovia Bank, National Association, as arranger, and Borrowers have
previously entered into that certain Loan and Security Agreement dated March 29, 2004 as amended by
the First Amendment to Loan and Security Agreement and Conditional Default Waiver dated as of June
10, 2004, the Second Amendment to Loan and Security Agreement dated as of December 30, 2004, the
Third Amendment to Loan and Security Agreement dated as of August 31, 2005 and the Fourth Amendment
to Loan and Security Agreement and Consent dated as of March 21, 2006 (the “Loan
Agreement”), pursuant to which Wachovia has made certain loans and financial accommodations
available to Borrowers. Terms used herein without definition shall have the meanings ascribed to
them in the Loan Agreement.

     B. Borrowers have requested Agent and Wachovia to amend the Loan Agreement in certain
respects, and Agent and Wachovia are now willing to accommodate such request on the terms and
conditions set forth herein.

     C. Borrowers are entering into this Amendment with the understanding and agreement that,
except as specifically provided herein, none of Agent’s or Lenders’ rights or remedies as set forth
in the Loan Agreement is being waived or modified by the terms of this Amendment.

AGREEMENT

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereby agree as follows:

     1. Reserve. The amount of the Reserve established pursuant to Section 1 of the First
Amendment to Loan and Security Agreement and Conditional Default Waiver dated as of June 10, 2004,
as amended by the Third Amendment to Loan and Security Agreement dated as of August 31, 2005, is
hereby increased to Three Million Five Hundred Thousand Dollars

 

 

($3,500,000). Such Reserve is a permanent Reserve under the Loan and Security Agreement and
shall not be reduced or eliminated without the written consent of Agent and the Lenders.

     2. Amendments to Loan Agreement.

          (a) The first sentence of the definition of “Borrowing Base” in Section 1.6 of the Loan
Agreement is hereby amended and restated to read in its entirety as follows:

     “‘Borrowing Base’ shall mean, at any time, the amount equal to: (a) the sum of
(i) eighty-five percent (85%) of Eligible Accounts (other than Eligible Accounts described
in the immediately following clause (ii)), plus (ii) the lesser of Two Million Dollars
($2,000,000) or seventy percent (70%) of foreign Eligible Accounts subject to credit
insurance as set forth in clause (e)(ii) of the within definition of ‘Eligible Accounts’,
plus (b) the least of: (i) the sum of (A) during the months of December through May,
inclusive, fifty-five percent (55%) of the Value of Eligible Inventory consisting of
finished goods, and at all other times, fifty percent (50%) of the Value of such Eligible
Inventory, plus (B) thirty-five percent (35%) of the Value of Eligible Inventory consisting
of raw materials for such finished goods or (ii) eighty-five percent (85%) of the Net
Orderly Liquidation Value of Eligible Inventory, or (iii) Seven Million Five Hundred
Thousand Dollars ($7,500,000), less (c) any Reserves.”

          (b) The definition of “Eurodollar Rate Margin” in Section 1.34 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

          “1.34 ‘Eurodollar Rate Margin’ shall mean five percent (5.00%) per annum.”

          (c) The definition of “Letter of Credit Rate” in Section 1.56 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

          “1.56 ‘Letter of Credit Rate’ shall mean five percent (5.00%) per annum.”

          (d) The definition of “Maximum Credit” in Section 1.60 of the Loan Agreement is hereby amended
and restated to read in its entirety as follows:

          “1.60 ‘Maximum Credit’ shall mean the amount of Twenty Million Dollars
($20,000,000).”

          (e) The definition of “Prime Rate Margin” in Section 1.76 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

          “7.76 ‘Prime Rate Margin’ shall mean one percent (1.00%) per annum.”

          (f) The definition of “Revolving Loan Limit” in Section 1.89 of the Loan Agreement is hereby
amended and restated to read in its entirety as follows:

          “1.89 ‘Revolving Loan Limit’ shall mean the amount of Twenty Million Dollars
($20,000,000).”

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          (g) Section 9.17.1 of the Loan Agreement is hereby amended and restated to read in its
entirety as follows:

     “9.17.1 EBITDA. Borrowers and their Subsidiaries, on a consolidated basis,
shall earn EBITDA, calculated as of the last day of each period set forth below, of not less
then the amount set forth opposite such periods:

	 	 	 
	Period	 	Amount
	Three months ending September 30, 2006

	 	<$   950,000>
	Four months ending October 31, 2006

	 	<$1,187,000>
	Five months ending November 30, 2006

	 	<$1,447,000>
	Six months ending December 31, 2006

	 	<$1,529,000>

     For the purposes hereof, ‘EBITDA’ shall mean the net income of Borrowers and
their Subsidiaries determined on a consolidated basis in accordance with GAAP consistently
applied, but excluding any extraordinary or one-time gains, plus (a) depreciation,
amortization and other non-cash charges (to the extent deducted in the computation of such
net income), plus (b) Interest Expense (to the extent deducted in the computation of
such net income), plus (c) charges for federal, state, local and foreign income
taxes (to the extent deducted in the computation of such income).

     On or before December 15 of each year (commencing with December 15, 2006), Borrowers
shall furnish Agent with projected consolidated and consolidating financial statements
(including in each case, forecasted balance sheets and statements of income and loss,
statements of cash flow, and statements of shareholders’ equity) of Borrowers and their
Subsidiaries for the next fiscal year, all in reasonable detail, and in a format consistent
with the projections previously delivered by Borrowers to Agent, together with such
supporting information as Agent may reasonably request. Such projected financial statements
shall be prepared on a monthly basis for the next succeeding fiscal year. Such projections
shall represent the reasonable estimate by Borrowers of the future financial performance of
Borrowers and their Subsidiaries for the periods set forth therein and shall have been
prepared on the basis of the assumptions set forth therein which Borrowers believe are fair
and reasonable as of the date of preparation in light of current and reasonably foreseeable
business conditions (it being understood that actual results may differ from those set forth
in such projected financial statements). Based upon each such projected financial
statement, Agent shall reasonably set minimum EBITDA levels for Borrowers and their
Subsidiaries for the subject fiscal year, and Borrowers and their Subsidiaries shall earn
EBITDA of not less than such minimum EBITDA levels.”

     3. Effectiveness of this Amendment. Agent must have received the following items, in
form and content acceptable to Agent, before this Amendment is effective.

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          (a) Amendment; Acknowledgement. This Amendment and the attached Acknowledgement by
Guarantors, each fully executed in a sufficient number of counterparts for distribution to all
parties.

          (b) Amendment Fee. An amendment fee in the amount of Twenty-Five Thousand Dollars
($25,000), which fee shall be paid to Agent by Borrower on or before the date hereof and is fully
earned as of the date hereof.

          (c) Representations and Warranties. The representations and warranties set forth
herein and in the Loan Agreement must be true and correct.

          (d) Other Required Documentation. All other documents and legal matters in connection
with the transactions contemplated by this Amendment shall have been delivered or executed or
recorded and shall be in form and substance satisfactory to Agent.

     4. Representations and Warranties. Each Borrower represents and warrants as follows:

          (a) Authority. Such Borrower has the requisite corporate power and authority to
execute and deliver this Amendment, and to perform its obligations hereunder and under the
Financing Agreements (as amended or modified hereby) to which it is a party. The execution,
delivery and performance by such Borrower of this Amendment have been duly approved by all
necessary corporate action and no other corporate proceedings are necessary to consummate such
transactions.

          (b) Enforceability. This Amendment has been duly executed and delivered by such
Borrower. This Amendment and each Financing Agreement (as amended or modified hereby) is the
legal, valid and binding obligation of such Borrower, enforceable against such Borrower in
accordance with its terms, and is in full force and effect.

          (c) Representations and Warranties. The representations and warranties contained in
each Financing Agreement (other than any such representations or warranties that, by their terms,
are specifically made as of a date other than the date hereof) are correct on and as of the date
hereof as though made on and as of the date hereof.

          (d) Due Execution. The execution, delivery and performance of this Amendment are
within the power of such Borrower, have been duly authorized by all necessary corporate action,
have received all necessary governmental approval, if any, and do not contravene any law or any
contractual restrictions binding on such Borrower.

          (e) No Default. No event has occurred and is continuing that constitutes an Event of
Default.

     5. Choice of Law. The validity of this Amendment, its construction, interpretation
and enforcement, and the rights of the parties hereunder, shall be determined under, governed by,

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and construed in accordance with the internal laws of the State of California governing
contracts only to be performed in that State.

     6. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties and separate counterparts, each of which when so executed and delivered, shall be
deemed an original, and all of which, when taken together, shall constitute one and the same
instrument. Delivery of an executed counterpart of a signature page to this Amendment by
telefacsimile shall be effective as delivery of a manually executed counterpart of this Amendment.

     7. Reference to and Effect on the Financing Agreements.

          (a) Upon and after the effectiveness of this Amendment, each reference in the Loan Agreement
to “this Agreement”, “hereunder”, “hereof” or words of like import referring to the Loan Agreement,
and each reference in the other Financing Agreements to “the Loan Agreement”, “thereof” or words of
like import referring to the Loan Agreement, shall mean and be a reference to the Loan Agreement as
modified and amended hereby.

          (b) Except as specifically amended above, the Loan Agreement and all other Financing
Agreements, are and shall continue to be in full force and effect and are hereby in all respects
ratified and confirmed and shall constitute the legal, valid, binding and enforceable obligations
of Borrowers to Agent and Lenders.

          (c) The execution, delivery and effectiveness of this Amendment shall not, except as expressly
provided herein, operate as a waiver of any right, power or remedy of Agent or any Lender under any
of the Financing Agreements, nor constitute a waiver of any provision of any of the Financing
Agreements.

          (d) To the extent that any terms and conditions in any of the Financing Agreements shall
contradict or be in conflict with any terms or conditions of the Loan Agreement, after giving
effect to this Amendment, such terms and conditions are hereby deemed modified or amended
accordingly to reflect the terms and conditions of the Loan Agreement as modified or amended
hereby.

     8. Integration. This Amendment, together with the other Financing Agreements,
incorporates all negotiations of the parties hereto with respect to the subject matter hereof and
is the final expression and agreement of the parties hereto with respect to the subject matter
hereof.

     9. Severability. In case any provision in this Amendment shall be invalid, illegal or
unenforceable, such provision shall be severable from the remainder of this Amendment and the
validity, legality and enforceability of the remaining provisions shall not in any way be affected
or impaired thereby.

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     IN WITNESS WHEREOF, the parties have entered into this Amendment as of the date first above
written.

	 	 	 	 	 	 	 
	 	 	ROCKFORD CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	AUDIO INNOVATIONS, INC.
	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	WACHOVIA CAPITAL FINANCE
 CORPORATION (WESTERN),

as Agent and as a Lender	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

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ACKNOWLEDGEMENT BY GUARANTORS

Dated as of August 31, 2006

     Each of the undersigned, being a guarantor (each a “Guarantor” and collectively, the
“Guarantors”) under their Guaranty and Security Agreement dated March 29, 2004, made in
favor of Agent and Lenders (as amended, modified or supplemented, the “Guaranty”) hereby
acknowledges and agrees to the foregoing Fifth Amendment to Loan and Security Agreement (the
“Amendment”) and confirms and agrees that the Guaranty is and shall continue to be, in full
force and effect and is hereby ratified and confirmed in all respects except that, upon the
effectiveness of, and on and after the date of the Amendment, each reference in the Guaranty to the
Loan Agreement (as defined in the Amendment), “thereunder”, “thereof” or words of like import
referring to the “Loan Agreement”, shall mean and be a reference to the Loan Agreement as amended
or modified by the Amendment. Although Lender has informed Guarantors of the matters set forth
above, and Guarantors have acknowledged the same, each Guarantor understands and agrees that Lender
has no duty under the Loan Agreement, the Guaranty or any other agreement with any Guarantor to so
notify any Guarantor or to seek such an acknowledgement, and nothing contained herein is intended
to or shall create such a duty as to any advances or transaction hereafter.

     If any action or proceeding is filed in a court of the State of California by or against any
Guarantor in connection with any of the transactions contemplated by the Loan Agreement or any
document related thereto, the court shall, and is hereby directed to, make a general reference
pursuant to California Code of Civil Procedure Section 638 to a referee or referees to hear and
determine all of the issues in such action or proceeding (whether of fact or of law) and to report
a statement of decision, provided that at the option of Lender, any such issues pertaining to a
“provisional remedy” as defined in California Code of Civil Procedure Section 1281.8 shall be heard
and determined by the court.

	 	 	 	 	 	 	 
	 	 	ROCKFORD SINGAPORE CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	ROCKFORD SALES.COM, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

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	 	 	MB QUART SHANGHAI, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

8exv10w1

 

Exhibit
10.1

LICENSE
AGREEMENT

          This License Agreement (“Agreement”) effective as of the ___day of ___, 2006, by
and between GPS Industries, Inc., a corporation organized under the laws of Nevada, U.S.A., having
a business address at 5500 — 152nd Street, Suite 214, Surrey B.C. Canada V3S 8E7 (“Licensor”) and
PROLINK SOLUTIONS LLC,, a limited liability company organized under the laws of the State of
Delaware, having a business address at 410 S. Benson Lane, Chandler, Arizona 85224
(“Licensee”).

          WHEREAS, Licensor is the assignee of the patents listed in Schedule A, attached hereto,
pertaining to Distance Measurement and tracking on a golf course using GPS technology (“Licensor
Patents”).

          WHEREAS, Licensor and Licensee have agreed to settle a dispute arising from Licensee’s sale
and installation of the ProLink GPS System per the Settlement Agreement dated ___, 2006;

          WHEREAS, pursuant to the terms of the Settlement Agreement, Licensor is willing to grant and
Licensee wishes to receive a non-exclusive license to dispose of, offer to dispose of, deal in any
way with, make, use, sell, offer for sale and import golf course management systems as described
and claimed in Licensor Patents.

          NOW, THEREFORE, in consideration of the mutual covenants and promises made herein and for
other good and valuable consideration, the parties agree as follows:

I. DEFINITIONS

          1.1 “Licensed Products” shall mean a system or parts of a system comprising a product or
products for a golf course using GPS technology manufactured and/or sold by or for ProLink which
product(s) in the absence of this Agreement would infringe at least one claim of the Licensor
Patents.

          1.2 “Licensed Territory” shall mean those countries in which the Licensor Patents have been
granted (See Schedule A) or may be enforced.

          1.3 “Course” shall mean a golf course at a specified location.

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          1.4 “Course Management” shall mean tracking the position of a golfer on a Course with Licensed
Products.

          1.5 “Distance Measurement” shall mean measuring distance from a GPS receiver on a Course to a
feature on the Course using GPS.

          1.6 “Third Party” shall mean a company or entity not owned or controlled by Licensor.

II. GRANT OF NON-EXCLUSIVE LICENSE

          2.1 Licensor hereby grants and Licensee hereby accepts a non-exclusive license in each country
of the Licensed Territory under the Licensor Patents to dispose of, offer to dispose of, deal in
any way with, make, have made, use, sell, offer for sale or import Licensed Products in and to the
Licensed Territory, which license expressly permits the resale of Licensed Products by Licensee’s
third party distributors in the Licensed Territory.

          2.2 Licensee is not granted any right to sub-license, in whole or in part, the Licensor
Patents, but shall have the right to procure manufacturing from third party contractors, to permit
its golf course customers to use the Licensed Products , and to permit its distributors to dispose
of, offer to dispose of, deal in any way with, make, have made, use, sell, offer for sale or import
the Licensed Products.

          2.3 Licensor warrants that it is entitled to grant the rights referred to in clause 2.1 and
that, apart from the rights granted in this Agreement, it has not granted or agreed to grant in the
Licensed Territory any conflicting exclusive rights under the Licensor Patents to any Third Party.

2

 

          2.4 Licensor warrants that it has not and will not offer a fully paid-up license in the
Licensed Territory to any Third Party on better terms, financial or otherwise, than that offered
to Licensee.

          2.5 Licensor warrants that any license granted to a Third Party in respect of the patents
under the heading EUROPE in Schedule A will be in respect of all those patents.

III. PAYMENTS TO LICENSOR

          3.1 Double Taxation Treaties

          The Licensor and Licensee agree to cooperate to make use of any double taxation treaties that
may be available to enable Licensee to pay royalties without deduction of withholding taxes.

          3.2 Paid-Up License

          Licensee shall pay Licensor a lump sum of One Million, Two Hundred Thousand Dollars
($1,200,000) for a fully paid-up license under the Licensor Patents. This payment shall be made
in accordance with the payment schedule and further instructions set forth in clauses 2.2 through
2.4 of the Settlement Agreement.

          3.3 The paid-up license fee is in consideration of and includes full settlement for past
infringement relating to the Licensor Patents by any of the Defendants to the Proceedings (both as
defined in the Settlement Agreement), any other distributors of Licensee, and Affiliates of the
foregoing. Except for obligations created by or arising out of this Agreement or the Settlement
Agreement, Licensor hereby releases the Defendants, any other distributor of Licensee, and
Affiliates from any and all claims, causes of action, damages or liabilities prior to the date of
this Agreement based on, relating to, or arising out of the Licensor Patents whether or not
expressly set out in the Proceedings and whether or not known to, notified to, or in the present
contemplation of Licensor. “Affiliates” shall mean the

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directors, officers, employees, parent companies, majority owned subsidiaries, and
shareholders of a Defendant or other distributor of Licensee.

IV. PATENT MARKING/NOTICE

          4.1 Licensee agrees to apply or have applied to all Licensor Products sold, leased or disposed
of by it, such patent notice as may be required by the laws of the country where manufactured, sold
or leased or as may be reasonably requested by Licensor.

          4.2 The parties acknowledge their mutual interest in policing and preventing unlicensed use of
the Licensor Patents by third parties. Licensee shall have the right to notify third parties that
it holds a non-exclusive license under the Licensor Patents, but shall have no right to enforce the
Licensor Patents. In the event that Licensee believes in good faith that a third party is selling
a product that may infringe a Licensor Patent in the Licensed Territory, then Licensee may provide
written notice to Licensor of same, which notice shall include contact information for such third
party and any known information or evidence relating to the potential infringement. If Licensor
believes in good faith there is a potential infringement, it shall promptly notify said third party
of the relevant Licensor Patent and request that the third party contact Licensor to discuss a
potential license. Licensor shall provide written confirmation to Licensee that such notice letter
has been sent to the third party within three business days of its transmission to the third party.
In the event Licensor believes that further information is required regarding the potential
infringement, it shall notify Licensee to that effect, and the parties shall cooperate in good
faith to obtain sufficient information. The parties acknowledge that Licensee is not an agent of
Licensor with respect to the enforcement or licensing of the Licensor Patents. Licensor shall not
be bound in any way to enforce the Licensor Patents against any such third parties or license third
parties except at its own discretion.

4

 

V. WARRANTIES AND INDEMNIFICATION

          Licensee agrees to defend, indemnify, and hold harmless Licensor against all claims and
actions as a result of any sales, property damage, or personal injury sustained by Licensee, its
employees, or other parties, as a result of use of the Licensor Patents or Licensed Products.

          licensor disclaims any warranty as to the current validity of the licensor patents,
noninfringement of licensed products, and any warranty as to the accuracy, sufficiency or
suitability of the licensed products and assumes no responsibility or liability for loss or
damages, whether direct, indirect, consequential, or incidental which might arise out of others’
use of the licensed products, which shall be entirely at licensee’s risk and peril. licensor shall
have no obligation to defend any claim or suit, or to hold harmless or indemnify licensee against
any allegation of infringement or violation of any patent right of a third party by reason of
licensee’s use of the licensed products.

VI. TERM AND TERMINATION

          6.1 The term of this Agreement shall start as of the effective date listed above and shall, in
each country of the Licensed Territory, continue in force for the life of the Licensor Patents in
effect in such country unless terminated at an earlier date pursuant to another provision of this
Agreement.

          6.2 This Agreement may be terminated:

	 	(a)	 	By the mutual, written agreement of the Licensor and Licensee;
	 
	 	(b)	 	In the event either party defaults or breaches any of the
provisions of this Agreement or the Settlement Agreement, the other party may
terminate this Agreement by giving the defaulting or breaching party twenty
(20) days written notice thereof; provided, however, that if the defaulting or
breaching party, within the twenty (20) day period referred to, cures said
default or breach,

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	 	 	 	this Agreement shall continue in full force and effect the same as if such
default or breach had not occurred.
	 
	 	(c)	 	If all of the claims of the Licensor Patents are declared
invalid by final judgments, orders or decrees in each applicable country from
which no further appeals can be taken.
	 
	 	(d)	 	By the Licensor if the Licensee or its third party distributors
or its Affiliates directly or indirectly oppose or assist any third party to
dispute the validity of the Licensor Patents or any of the claims thereof.
	 
	 	(e)	 	By the Licensor if the Licensee files for bankruptcy or becomes
or is insolvent.

VII. DISPUTES

          If a dispute arises out of or relates to this Agreement, or the breach hereof, the parties
agree first to try in good faith to settle the dispute by mediation under the Commercial Mediation
Rules of the American Arbitration Association, before resorting to arbitration. Thereafter, any
remaining unresolved controversy or claim arising out of or relating to this Agreement, or breach
hereof, shall be settled by arbitration in accordance with the Commercial Arbitration Rules of the
American Arbitration Association, and judgment upon the award rendered by the arbitrator(s) may be
entered in any court having jurisdiction thereof. The seat of the arbitration shall be in
California, U.S.A. and the decision of the arbitrators shall be final. The prevailing party shall
be entitled to reasonable attorney’s fees in addition to costs and necessary disbursements.

VIII. NOTICES

          Any notice or report made by a party shall be considered proper and effective if mailed to the
other by registered mail addressed as shown below, or

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delivered in person. Each party stipulates that the below address is correct and current, and
agrees to notify the other of any changes.

	 	 	 	 	 
	 

	 	Licensor:
	 	Chief Financial Officer
	 

	 	 	 	GPS Industries, Inc.
	 

	 	 	 	5500 — 152nd Street, Suite 214
	 

	 	 	 	Surrey B.C. Canada V3S 8E7
	 
	 	 	 	 
	 

	 	Licensee:
	 	General Counsel
	 

	 	 	 	ProLink Solutions LLC
	 

	 	 	 	410 S. Benson Lane,
	 

	 	 	 	Chandler,
	 

	 	 	 	Arizona 85224

IX. GOVERNMENTAL APPROVAL

          9.1 Any approval of this Agreement by a government which is required to enable Licensee to
enter into this Agreement or to make payments to Licensor hereunder in U.S. dollars shall be
secured in writing by Licensee who shall supply the same or a true copy thereof to Licensor
within six (6) months of either the date of this Agreement or the date when Licensee makes a
determination to operate under this Agreement in any foreign country where such governmental
approval is required.

          9.2 If any government department, court or other body in authority, finds any of the
provisions in this Agreement at any time to be unenforceable or unlawful (whether under Articles
81 or 82 of the European Union’s Treaty of Rome or under the provisions of the United Kingdom’s
Competition Act 1998 or otherwise) either party may require a reasonable amendment to this
Agreement to ensure that this Agreement complies with, and is enforceable under, such
provisions. If this Agreement is not capable of such amendment, the offending provision shall
be deemed to be deleted from this Agreement and the remaining provisions shall continue in full
force and effect.

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X. GENERAL PROVISIONS

          10.1 waiver. Waiver by either party of any breach or default of any of
the provisions herein set forth shall not be deemed a waiver as to any subsequent or any other
breach or default.

          10.2 modification, force majeure. Any amendment or modification of this
Agreement or any right hereunder shall not be effective unless made in writing and signed by
both of the parties hereto. Neither party will be liable for delays in performance due to
circumstances beyond its reasonable control.

          10.3 successors and assigns. All terms and provisions of this Agreement
shall be binding upon and inure for the benefit of the parties hereto, and their successors and
assigns and legal representatives, except that Licensee may not assign this Agreement nor any
right granted hereunder, in whole or in part, without Licensor’s prior written consent. For
purposes of this Agreement, a change of control by and of Licensee shall be deemed an assignment
and Licensor’s prior written consent is required to assign this Agreement, such consent not to
be unreasonably withheld; provided, however, that Licensor specifically reserves the right to
withhold consent if the party assuming control of the Licensee is involved in a dispute with the
Licensor.

          10.4 governing law; severability. This Agreement shall be governed by
the laws of the State of Delaware U.S.A. If any provisions of the Agreement or the application
of any such provision shall be held to be contrary to law, the remaining provisions of this
Agreement shall continue in full force and effect.

          10.5 entire agreement. The parties acknowledge that this Agreement expresses
their entire understanding and agreement, and that there have been no warranties,
representations, covenants of understandings made by either party to the other except such as
are expressly set forth herein.

8

 

	 	 	 	 	 	 	 	 	 
	GPS INDUSTRIES, INC.	 	 	 	PROLINK SOLUTIONS LLC
	 
	 	 	 	 	 	 	 	 
	By:

	 	 	 	 	 	By:	 	 
	 

	 	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Name:

	 	 	 	 	 	Name:	 	 
	 

	 	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Title:

	 	 	 	 	 	Title:	 	 
	 

	 	 

	 	 	 	 	 	 

	 
	 	 	 	 	 	 	 	 
	Date:

	 	 	 	 	 	Date:	 	 
	 

	 	 

	 	 	 	 	 	 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00113-of-00352.parquet"}]]