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.
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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.
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