Settlement & License Agreement

SETTLEMENT AND LICENSE AGREEMENT


BY, BETWEEN AND AMONG


AMERIGON, INC.,


AUDIO NAVIGATION SYSTEMS, LLC


ALCOM ENGINEERING CORPORATION


AND


AUDIO NAVIGATION SYSTEMS, INC.


DATED MAY 10, 1996


TABLE OF CONTENTS


1. DEFINITIONS . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
1.1 "Actions" . . . . . . . . . . . . . . . . . . . 2
1.2 "Affiliate" . . . . . . . . . . . . . . . . . . 2
1.3 "Amerigon Licensed Patents" . . . . . . . . . . 3
1.4 "Amerigon Other Consideration". . . . . . . . . 3
1.5 "Amerigon Selling Price". . . . . . . . . . . . 3
1.6 "Amerigon Sublicensees" . . . . . . . . . . . . 3
1.7 "ANSLC Licensed Patents". . . . . . . . . . . . 4
1.8 "ANSLC Other Consideration" . . . . . . . . . . 4
1.9 "ANSLC Parties" . . . . . . . . . . . . . . . . 4
1.10 "ANSLC Selling Price" . . . . . . . . . . . . . 4
1.11 "ANSLC Sublicensees". . . . . . . . . . . . . . 4
1.12 "Consulting Agreement"......... . . . . . . . . 4
1.13 "Credit Card Processing Agreement". . . . . . . 4
1.14 "Disputed Matters" . . . . . . . . . . . . . . 5
1.15 "Effective Date" . . . . . . . . . . . . . . . 5
1.16 "Gen 4 Agreement" . . . . . . . . . . . . . . . 5
1.17 "Gen 4 Hardware". . . . . . . . . . . . . . . . 5
1.18 "Gen 4 Software". . . . . . . . . . . . . . . . 5
1.19 "Indemnified Parties".... . . . . . . . . . . . 6
1.20 "Interoperable Software". . . . . . . . . . . . 6
1.21 "Issued", "Issuing", "Issues" and "Issuance". . 6
1.22 "Legal Proceeding". . . . . . . . . . . . . . . 6
1.23 "Lunel" . . . . . . . . . . . . . . . . . . . . 6
1.24 "Manufacturing Apparatus" . . . . . . . . . . . 6
1.25 "Navigation-Related Features or Functions". . . 6
1.26 "Option and License Agreement". . . . . . . . . 6
1.27 "Other Consideration" . . . . . . . . . . . . . 6
1.28 "Outsourcing Agreement" . . . . . . . . . . . . 7
1.29 "Passcode Activation Patent". . . . . . . . . . 7
1.30 "Prior Agreements". . . . . . . . . . . . . . . 8
1.31 "Sales Fulfillment / Activation Technology" . . 8
1.32 "Selling Price" . . . . . . . . . . . . . . . . 8
1.33 "Specified Agreements". . . . . . . . . . . . . 9
1.34 "Specified Recoupment". . . . . . . . . . . . . 9
1.35 "Specified Software". . . . . . . . . . . . . . 9
1.36 "Unrelated Third Party" . . . . . . . . . . . . 9
1.37 "VANS Hardware" . . . . . . . . . . . . . . . . 9
1.38 "VANS Navigation Software". . . . . . . . . . . 10
1.39 "VANS Non-Navigation Software". . . . . . . . . 11
1.40 "VANS Product". . . . . . . . . . . . . . . . . 11


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1.41 "VANS Software" . . . . . . . . . . . . . . . . . 11
1.42 "Voice-Interactive" . . . . . . . . . . . . . . . 11


2. PRIOR AGREEMENTS. . . . . . . . . . . . . . . . . . . . . . . . . 11


3. RIGHTS TO EXISTING TECHNOLOGY . . . . . . . . . . . . . . . . . . 12
3.1 DELIVERY OF EXISTING VOICE FILES . . . . . . . . 12
3.2 DELIVERY OF SALES FULFILLMENT / ACTIVATION
TECHNOLOGY. . . . . . . . . . . . . . . . . . . . . . . 12
3.3 COVENANTS NOT TO SUE . . . . . . . . . . . . . . 12
3.3.1 BY AMERIGON . . . . . . . . . . . . . 12
3.3.2 BY ANSLC. . . . . . . . . . . . . . . 13
3.4 LIMITATION ON ANSLC'S RIGHTS TO GEN 4. . . . . . 13
3.5 LIMITATIONS ON AMERIGON'S RIGHTS . . . . . . . . 13
3.6 OWNERSHIP OF PROPRIETARY RIGHTS IN EXISTING
TECHNOLOGY . . . . . . . . . . . . . . . . . . . . . . 13
3.6.1 GENERAL . . . . . . . . . . . . . . . 13
3.6.2 ANSI OWNERSHIP. . . . . . . . . . . . 14
3.6.3 AMERIGON OWNERSHIP. . . . . . . . . . 14
3.6.4 JOINT OWNERSHIP.. . . . . . . . . . . 14
3.7 OWNERSHIP OF TRADEMARKS. . . . . . . . . . . . . 14
3.7.1 IVS TRADEMARK . . . . . . . . . . . . 14
3.7.2 VANS TRADEMARK. . . . . . . . . . . . 15
. . . . . . . . . . . . . . . . . . . . . . 15
3.8 NO WARRANTIES RE TECHNOLOGY. . . . . . . . . . . 15


4. INDEMNIFICATIONS. . . . . . . . . . . . . . . . . . . . . . . . . 15
4.1 THIRD PARTY CLAIMS AGAINST THE ANSLC
PARTIES . . . . . . . . . . . . . . . . . . . . . . . . 15
4.2 THIRD PARTY CLAIMS AGAINST AMERIGON. . . . . . . 16
4.3 LIMITATIONS. . . . . . . . . . . . . . . . . . . 16


5. CREATION OF ADDITIONAL VOICE FILES. . . . . . . . . . . . . . . . 16
5.1 ENGAGING LUNEL . . . . . . . . . . . . . . . . . 16
5.2 COSTS OF PRODUCING VOICE FILES . . . . . . . . . 17
5.3 ROYALTIES................. . . . . . . . . . . . 17
5.4 OWNERSHIP AND LICENSING OF VOICE FILES . . . . . 17


6. PATENT LICENSE FROM ANSLC TO AMERIGON . . . . . . . . . . . . . . 18
6.1 GENERAL. . . . . . . . . . . . . . . . . . . . . 18
6.2 PASSCODE ACTIVATION PATENT . . . . . . . . . . . 18
6.3 EXTENSION OF LICENSE TO AFFILIATES AND
SUBLICENSEES. . . . . . . . . . . . . . . . . . . . . . 18


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7. PATENT LICENSE FROM AMERIGON TO ANSLC . . . . . . . . . . . . . . 18
7.1 GENERAL. . . . . . . . . . . . . . . . . . . . . 18
7.2 EXTENSION OF LICENSE TO AFFILIATES AND
SUBLICENSEES. . . . . . . . . . . . . . . . . . . . . . 19


8. PATENT NOTICES. . . . . . . . . . . . . . . . . . . . . . . . . . 19


9. DISCLOSURE OF PATENTS . . . . . . . . . . . . . . . . . . . . . . 19


10. EXPENSES OF PATENT PROSECUTION. . . . . . . . . . . . . . . . . . 19


11. PATENT LITIGATION AND APPORTIONMENT OF RECOVERY . . . . . . . . . 20
11.1 EACH PARTY RESPONSIBLE FOR PROTECTION OF ITS
PATENTS . . . . . . . . . . . . . . . . . . . . . . . . 20
11.2 RIGHT TO SHARE LITIGATION EXPENSES AND
APPORTIONMENT OF RECOVERIES . . . . . . . . . . . . . . 20


12. ROYALTIES. . . . . . . . . . . . . . . . . . . . . . . . . . . . 21
12.1 ROYALTIES PAYABLE BY ANSLC . . . . . . . . . . . 21
12.1.1 HARDWARE. . . . . . . . . . . . . . . 21
12.1.2 SOFTWARE AND ANSLC OTHER
CONSIDERATION . . . . . . . . . . . . . . . . . 21
12.2 ROYALTIES PAYABLE BY AMERIGON. . . . . . . . . . 22
12.2.1 HARDWARE. . . . . . . . . . . . . . . 22
12.2.2 SOFTWARE AND AMERIGON OTHER
CONSIDERATION. . . . . . . . . . . . . . . . . . 23
12.3 EXPIRATION OF PAYMENT OBLIGATIONS. . . . . . . . 24
12.4 RESPONSIBILITY FOR AFFILIATES AND SUBLICENSEES . 24
12.4.1 ANSLC RESPONSIBILITY FOR
ANSLC AFFILIATES AND SUBLICENSEES. . . . . . . . 24
12.4.2 AMERIGON RESPONSIBILITY FOR
AMERIGON AFFILIATES AND SUBLICENSEES . . . . . . 24


13. ACCRUALS, RECORDS AND REPORTS . . . . . . . . . . . . . . . . . . 24
13.1 ACCRUAL OF ROYALTIES . . . . . . . . . . . . . . . 24
13.2 STATEMENTS . . . . . . . . . . . . . . . . . . . . 25
13.3 LATE CHARGES . . . . . . . . . . . . . . . . . . . 25
13.4 FORM OF PAYMENTS . . . . . . . . . . . . . . . . . 25
13.5 CERTIFICATION. . . . . . . . . . . . . . . . . . . 25
13.6 RECORDS. . . . . . . . . . . . . . . . . . . . . . 26
13.7 TAXES. . . . . . . . . . . . . . . . . . . . . . . 27


14. SECURITY INTERESTS. . . . . . . . . . . . . . . . . . . . . . . . 27


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15. LIMITATIONS ON PUBLIC STATEMENTS. . . . . . . . . . . . . . . . . 28
15.1 GENERAL. . . . . . . . . . . . . . . . . . . . . 28
15.2 EXCEPTIONS AND EXCLUSIONS. . . . . . . . . . . . 29
15.3 PRESS RELEASE. . . . . . . . . . . . . . . . . . 29


16. RELEASES: DISMISSAL OF LEGAL PROCEEDING . . . . . . . . . . . . . 29
16.1 RELEASE BY AMERIGON. . . . . . . . . . . . . . . 29
16.2 RELEASE BY ANSLC PARTIES . . . . . . . . . . . . 30
16.3 STIPULATION FOR DISMISSAL OF LITIGATION. . . . . 31
16.4 COMPROMISE ONLY. . . . . . . . . . . . . . . . . 31


17. REPRESENTATIONS . . . . . . . . . . . . . . . . . . . . . . . . . 32
17.1 MUTUAL REPRESENTATIONS . . . . . . . . . . . . . 32
17.2 REPRESENTATIONS BY ANSLC PARTIES . . . . . . . . 32
17 3 LIMITATIONS AND EXCLUSIONS . . . . . . . . . . . 32


18. CONFIDENTIALITY OBLIGATIONS . . . . . . . . . . . . . . . . . . . 32


19. DISPUTE RESOLUTION. . . . . . . . . . . . . . . . . . . . . . . . 33
19.1 GENERAL. . . . . . . . . . . . . . . . . . . . . 33
19.2 DISPUTE ESCALATION . . . . . . . . . . . . . . . 34
19.3 RESOLUTION OF DISPUTES RE SELLING PRICE ALLOCATION ISSUES. . 34
19.3.1 SELECTION OF ARBITRATOR. . . . . . . 34
19.3.2 HEARING AND RESOLUTION . . . . . . . 35
19.3.3 EXPENSES . . . . . . . . . . . . . . 35
19.4 ARBITRATION. . . . . . . . . . . . . . . . . . . 36
19.5 GENERAL PROVISIONS RE ARBITRATION. . . . . . . . 36


20. APPRAISAL OF FAIR MARKET VALUE. . . . . . . . . . . . . . . . . . 37


21. TERM OF LICENSE RIGHTS: LIMITATION OF REMEDIES. . . . . . . . . . 37
21.1 TERM OF LICENSE RIGHTS . . . . . . . . . . . . . 37
21.2 NO INJUNCTIVE RELIEF . . . . . . . . . . . . . . 38


22. PAYMENTS TO NAVTECH AND LERNOUT & HAUSPIE AND OTHER THIRD
PARTIES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38


23. NOTICES . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38


24. COMPATIBILITY / INTEROPERABILITY. . . . . . . . . . . . . . . . . 39
24.1 VANS NON-NAVIGATION SOFTWARE . . . . . . . . . . 39
24.2 VANS NAVIGATION SOFTWARE . . . . . . . . . . . . 39


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24.3 TRANSFERABILITY OF RIGHTS. . . . . . . . . . . . 39
24.4 LIMITED TECHNICAL SUPPORT. . . . . . . . . . . . 40
24.5 ROYALTY ADJUSTMENT . . . . . . . . . . . . . . . 40


25. OPERATION OF TOLL-FREE 800 NUMBER; OUTSOURCING AGREEMENT . . . . . 41
25.1 RIGHT START AGREEMENT. . . . . . . . . . . . . . 41
25.2 CREDIT CARD PROCESSING AGREEMENT . . . . . . . . 41


26. CUSTOMER LISTS . . . . . . . . . . . . . . . . . . . . . . . . . . 42


27. RELATIONSHIP OF PARTIES. . . . . . . . . . . . . . . . . . . . . . 42


28. MISCELLANEOUS. . . . . . . . . . . . . . . . . . . . . . . . . . . 42
28.1 NOTICES AND COMMUNICATIONS . . . . . . . . . . . 42
28.2 EXCUSED PERFORMANCE. . . . . . . . . . . . . . . 43
28.3 ASSIGNMENT . . . . . . . . . . . . . . . . . . . 43
28.4 INTEGRATION. . . . . . . . . . . . . . . . . . . 44
28.5 MODIFICATION . . . . . . . . . . . . . . . . . . 44
28.6 WAIVER OR DELAY. . . . . . . . . . . . . . . . . 44
28.7 SEVERABILITY . . . . . . . . . . . . . . . . . . 44
28.8 SURVIVAL . . . . . . . . . . . . . . . . . . . . 44
28.9 GOVERNING LAW. . . . . . . . . . . . . . . . . . 44
28.10 HEADINGS . . . . . . . . . . . . . . . . . . . . 45


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SETTLEMENT AND LICENSE AGREEMENT


This Settlement and License Agreement (the "Agreement") is made and entered into this 9th day of May, 1996, by and between Amerigon, Inc., a California corporation ("Amerigon"); Audio Navigation Systems, Inc., a California corporation ("ANSI"); Audio Navigation Systems, LLC, a California limited liability corporation ("ANSLC"); and Alcom Engineering Corporation, a California corporation ("Alcom"), with reference to the following facts:


A. Amerigon and ANSI are parties to an Option and License Agreement dated as of July 13, 1992.


B. Amerigon, ANSI and Alcom Engineering Corporation are parties to a Consulting Agreement dated as of July 13, 1992.


C. Certain disputes have arisen between Amerigon and ANSI relating, INTER ALIA, to their respective rights and obligations under the July 13, 1992 Option and License Agreement and the July 13, 1992 Consulting Agreement.


D. On May 17, 1995, Amerigon filed a complaint in Superior Court, County of Los Angeles, State of California, AMERIGON. INC. v. AUDIO NAVIGATION SYSTEMS, INC. ET AL., Case No. BC127921, and on June 1, 1995, Amerigon filed a First Amended Complaint for Declaratory Relief in that action. On or about July 1, 1995, ANSI filed a General Denial and a Cross-Complaint for Declaratory Relief in that action.


E. Subsequent to the commencement of the legal action described in Paragraph D above, ANSI and Amerigon entered into an Agreement Re Gen 4 Navigation System dated July 24, 1995, which was amended by an Amendment dated as of August 14, 1995.


F. Certain disputes have arisen between Amerigon and ANSI relating to their respective rights and obligations under the July 24, 1995 Agreement Re Gen 4 Navigation System as amended by the August 14, 1995 Amendment.


G. Amerigon, on the one hand, and the ANSLC Parties, on the other hand, wish fully and finally to resolve all differences, claims, demands, causes of action and disputes of whatever nature or subject matter between them, including but not limited to all disputes and claims arising out of any of the facts, transactions and occurrences alleged in or in connection with the legal action described in Paragraph D above and all disputes and claims arising out of or relating to the July 13, 1992 Option and License Agreement, the July 13, 1992 Consulting Agreement and/or the July 24, 1995 Agreement Re Gen 4 Navigation System, as amended by the August 14, 1995 Amendment.


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H. All or substantially all of ANSI's rights in and to the technology, patents and business that are the subject of this Agreement have been or will be assigned to ANSLC.


I. Amerigon, on the one hand, and ANSI and ANSLC, on the other hand, desire, pursuant to the terms and conditions set forth herein, to grant one another certain rights and make certain commitments not to assert claims against one another in the future in an effort to lessen the likelihood of future disputes between the parties and to permit the parties to conduct their respective businesses.


NOW THEREFORE, in consideration of the foregoing, and in consideration of the representations, warranties and covenants set forth in this Agreement, ANSI, ANSLC, Alcom and Amerigon agree as follows:


ALTHOUGH THIS AGREEMENT IS BEING EXECUTED ON MAY 10, 1996, THE PARTIES AGREE THAT THIS AGREEMENT SHALL NOT BE BINDING OR EFFECTIVE UNLESS AND UNTIL ANSLC CONCLUDES AN AGREEMENT WITH NAVTECH REASONABLY ACCEPTABLE TO ANSLC GRANTING ANSLC LICENSE RIGHTS IN THE NAVTECH TECHNOLOGY COMPARABLE TO THOSE HELD BY AMERIGON. IN THE EVENT NO SUCH AGREEMENT BETWEEN NAVTECH AND ANSLC IS ENTERED INTO, THIS AGREEMENT SHALL BE VOID AND OF NO FORCE OR EFFECT, EXCEPT THAT THIS PARAGRAPH AND SECTION 3.1 SHALL BE BINDING UPON THE PARTIES. ANSLC SHALL NEGOTIATE IN GOOD FAITH IN AN EFFORT TO REACH AN AGREEMENT WITH NAVTECH CONSISTENT WITH THE CORRESPONDENCE AND PROPOSALS HERETOFORE EXCHANGED BETWEEN NAVTECH AND ANSLC. UPON EXECUTION OF SUCH AN AGREEMENT BETWEEN NAVTECH AND ANSLC, ANSLC SHALL PROMPTLY NOTIFY AMERIGON IN WRITING, AND AMERIGON AND ANSLC SHALL EXECUTE AN ADDENDUM CONFIRMING THAT THIS AGREEMENT IS IN FULL FORCE AND EFFECT. THE DATE OF EXECUTION OF SUCH AN AGREEMENT BETWEEN NAVTECH AND ANSLC SHALL BE THE "EFFECTIVE DATE" OF THIS AGREEMENT. IN THE EVENT THE EFFECTIVE DATE HAS NOT OCCURRED ON OR BEFORE JUNE 15, 1996: (i) THERE SHALL NOT BE AN EFFECTIVE DATE OF THIS AGREEMENT, UNLESS THE PARTIES MUTUALLY AGREE IN WRITING TO THE CONTRARY; AND (ii) THIS PARAGRAPH AND SECTION 3.1 SHALL BE THE ONLY PROVISIONS OF THIS AGREEMENT BINDING UPON THE PARTIES.


1. DEFINITIONS. As used in this Agreement, the following terms shall have the following meanings:


1.1 "Actions" shall mean any allegations, claims, suits, arbitrations, actions, or proceedings.


1.2 "Affiliate" shall mean, with respect to any applicable party referred to in this Agreement, any corporation, limited liability company, partnership or other entity (collectively, an "Entity") of which such party (a) has legal, beneficial or equitable ownership, directly or indirectly, or the right to acquire legal, beneficial or equitable ownership, directly


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or indirectly, of forty percent (40%) or more of the aggregate of all equity interests in such Entity (no matter how evidenced) or (b) has legal, beneficial or equitable ownership, directly or indirectly, or the right to acquire legal, beneficial or equitable ownership, directly or indirectly, of forty percent (40%) or more of the interests (no matter how evidenced) having the power to direct the affairs of such Entity by reason of ownership of voting stock, contract or otherwise; or (c) is directly or indirectly controlling, controlled by or under common control with such applicable party. Without limiting the foregoing definition, ANSI, ANSLC and Amerigon each agrees not to create any Entity that does not meet the definition of an Affiliate hereunder for the principal purpose of circumventing or frustrating the respective rights, obligations and intentions of the parties as set forth in this Agreement. Further without limiting the foregoing definition, the parties agree that ANSI shall be deemed an Affiliate of ANSLC.


1.3 "Amerigon Licensed Patents" shall mean all patents (not including any design patents) Issued or Issuing on patent applications entitled to an effective filing date prior to May 10, 1998, for which, (a) at May 10, 1996, Amerigon or an Amerigon Affiliate is an actual or beneficial owner or an assignee, or (b) at the date of the invention, the date of reduction to practice or May 10, 1996 any named inventor was employed by Amerigon or an Amerigon Affiliate or engaged by Amerigon or an Amerigon Affiliate pursuant to an agreement requiring that the inventor assign patent rights in such invention to Amerigon or an Amerigon Affiliate. The term "Amerigon Licensed Patents" shall also include any patent which is a reissue or extension of any of the foregoing, and any patent issuing on any patent application related as a divisional or a continuation or a continuation-in-part of any of the foregoing. Without limiting the foregoing, Amerigon Licensed Patents include those patents identified in Schedule 1.3 attached hereto.


1.4 "Amerigon Other Consideration" means any Other Consideration received by Amerigon or an Amerigon Affiliate.


1.5 "Amerigon Selling Price" shall mean the Selling Price at which a VANS Product is sold, leased, licensed, made available or otherwise exploited by Amerigon, an Amerigon Affiliate or an Amerigon Sublicensee to a third party other than Amerigon, an Amerigon Affiliate, an Amerigon Sublicensee or an Affiliate of an Amerigon Sublicensee.


1.6 "Amerigon Sublicensees" shall mean any person or entity to which Amerigon grants any rights to make, or have made VANS Products or to practice or have practiced any method or process involved in the manufacture or use thereof; or to make, have made or use Manufacturing Apparatus or practice or have practiced any method or process involved in the manufacture or use


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thereof; or to use, lease, sell or otherwise transfer VANS Products;


1.7 "ANSLC Licensed Patents" shall mean all patents (not including any design patents), Issued or Issuing on patent applications entitled to an effective filing date prior to May 10, 1998, for which, (a) at May 10, 1996, ANSLC or an ANSLC Affiliate is an actual or beneficial owner or an assignee, or (b) at the date of the invention, the date of reduction to practice or May 10, 1996 any named inventor was employed by ANSLC or an ANSLC Affiliate or engaged by ANSLC or an ANSLC Affiliate pursuant to an agreement requiring that the inventor assign patent rights in such invention to ANSLC or an ANSLC Affiliate. The term "ANSLC Licensed Patents" shall also include any patent which is a reissue or extension of any of the foregoing, and any patent issuing on any patent application related as a divisional or a continuation or a continuation-in-part of any of the foregoing. Without limiting the foregoing, ANSLC Licensed Patents include those Issued patents identified in Schedule 1.7 attached hereto, and patents hereafter Issuing on those patent applications identified in Schedule 1.7.


1.8 "ANSLC Other Consideration" means any Other Consideration received by ANSLC or an ANSLC Affiliate.


1.9 "ANSLC Parties" means, individually and collectively, ANSI, ANSLC and Alcom.


1.10 "ANSLC Selling Price" shall mean the Selling Price at which a VANS Product is sold, licensed or otherwise made available or exploited by ANSLC, an ANSLC Affiliate or an ANSLC Sublicensee to a third party other than ANSLC, an ANSLC Affiliate, an ANSLC Sublicensee or an Affiliate of an ANSLC Sublicensee.


1.11 "ANSLC Sublicensees" shall mean any person or entity to which ANSLC grants any rights to make, or have made VANS Products or to practice or have practiced any method or process involved in the manufacture or use thereof; or to make, have made or use Manufacturing Apparatus or practice or have practiced any method or process involved in the manufacture or use thereof; or to use, lease, sell or otherwise transfer VANS Products;


1.12 "Consulting Agreement" shall mean the Consulting Agreement dated as of July 13, 1992 between and among Amerigon, ANSI and Alcom Engineering Corporation.


1.13 "Credit Card Processing Agreement" shall mean the agreement dated August 22, 1995 between ANSI and First U.S.A./DMGT pursuant to which First U.S.A./DMGT has certain obligations with respect to the processing of credit card transactions for sales of certain Gen 4 Software.


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1.14 "Disputed Matters" shall mean all disputes, controversies or conflicts between any of the ANSLC Parties, on the one hand, and Amerigon, on the other hand, relating to any of the Specified Agreements and all disputes, controversies or conflicts which are the subject of the Legal Proceeding.


1.15 "Effective Date" shall have the meaning specified on the first page of this agreement, in the paragraph immediately preceding Section 1.


1.16 "Gen 4 Agreement" shall mean the Agreement Re Gen 4 Navigation System dated July 24, 1995 between ANSI and Amerigon, as amended by the Amendment dated as of August 14, 1995 between ANSI and Amerigon.


1.17 "Gen 4 Hardware" shall mean VANS Hardware consisting of a printed circuit board and electronic components and connectors, cables, housings, firmware and other tangible hardware in substantially the form that exists as of the date of this Agreement for anticipated delivery by Amerigon to Amerigon's customers such as Kenwood, Alpine, Clarion and Eclipse. VANS Hardware shall be deemed to constitute Gen 4 Hardware if (a) such hardware includes a system architecture that uses a Digital Signal Processor from Analog Devices (#21MSP55) and a Motorola Central Processing Unit (#68340) (or backward compatible direct successors thereto or a second-source chips generally recognized in the industry as clones of such chips or clones of backward compatible successors thereto) or (b) such hardware is characterized by the DSP, operating as a slave to the CPU, being used for speech recognition and speech generation; the CPU being used for CD data retrieval, navigation calculations, and system control; the DSP receiving the data and program code necessary for speech recognition and speech generation from a DRAM accessible indirectly through the CPU; the DSP having dedicated SRAM for its "scratch" calculations; and a ROM from which program code necessary to start the system upon power-on is executed from the CPU. Gen 4 Hardware also includes minor modifications to the foregoing that are intended to reduce cost or to resolve technical problems or to improve performance, provided that the hardware modifications do not change the fundamental system architecture of the foregoing. Gen 4 Hardware expressly excludes any VANS Hardware that utilizes a single chip that combines the functions of the Digital Signal Processor and the Central Processing Unit.


1.18 "Gen 4 Software" shall mean operating system and application Software for the Gen 4 Hardware which, when used on the Gen 4 Hardware, provides Voice-Interactive Navigation-Related Features or Functions. The Gen 4 Software may include, without limitation, operating system software, application programs, hardware device drivers for interfacing with audio CD players and/or maps, including points of interest.


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1.19 "Indemnified Parties" shall mean with respect to any party, such party and its Affiliates, and their respective officers, directors, agents and employees.


1.20 "Interoperable Software" shall have the meaning specified in Section 24.1.


1.21 "Issued", "Issuing", "Issues" and "Issuance" shall refer to the awarding of a patent based upon a patent application, whether such awarding is affected by issuance, registration, deliverance, sealing, granting or any other act.


1.22 "Legal Proceeding" shall mean the proceeding in Superior Court, County of Los Angeles, State of California, AMERIGON INC. V. AUDIO NAVIGATION SYSTEMS, INC. ET AL., Case No. BC127921.


1.23 "Lunel" shall mean Roy Lun ...