Exhibit 10.18
*** Confidential portions of this document have been redacted and separately filed with the Commission.
HSS EMITTER AND SYSTEM
SUPPLY AND MANUFACTURE AGREEMENT
This Supply ( “Agreement” ) is made and entered into effective this 18th day of July, 2001 ( “Effective Date” ) by and
between American Technology Corporation, a Delaware corporation, with its offices at 13114 Evening Creek Dr. S., San Diego,
CA 92128 ( “ATC” ), and Horizon Sports Technologies, Inc., a California corporation, with its offices at 8985 Crestar Pointe, San
Diego, CA 92121 ( “HST” ). In this Agreement, ATC and HST may be referred to individually as a “Party” and collectively as
the “Parties”.
RECITALS
WHEREAS:
A. ATC is engaged in the discovery, development, and improvement of systems, devices, and technologies related to
sound reproduction, including loudspeaker devices for various applications.
B. ATC has developed or acquired and is the owner of certain inventions relating to systems which cause the generation
of desired acoustic frequencies by means of non-linear propagation from frequencies which are higher than the desired
frequency, and is the owner of certain patent rights as set forth on Exhibit A attached to this Agreement, and inventions
covered thereby ( “Patent Rights” ), as well as trade secrets and other confidential and proprietary information, including, but
not limited to data, designs, diagrams, drawings, reports, supplier lists, specifications, memoranda, and the like, in whatever
form, concerning such inventions and related methods, processes, systems and devices, all relating to a sound reproduction
system known as HyperSonic TM Sound (HSS TM ) ( “Know-How” ). HSS technology is ATC’s proprietary ultrasonic sound
generation technology, devices and methods, including, but not limited to: “Parametric Loudspeakers,” which shall mean any
speaker or device that indirectly generates lower frequency tones from high frequency tones; and, to power m