Nautilus 2003 Annual Report Download - page 77

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FIRST AMENDMENT TO LICENSE AGREEMENT
The License Agreement executed by Piaget Associates, L.L.C. on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999 is hereby
amended as follows:
A. The parties to the Agreement are changed to include Gary D. Piaget, an individual residing in East Sound, Washington, as the Licensor
along with Piaget Associates, L.L.C.
B.
The royalty rate (Paragraph 4.2A) is reduced from Four Percent (4%) to Three Percent (3%).
C. The minimum royalty payment (Paragraphs 4.1 and 4.2D ii ) is reduced from Twenty five Thousand Dollars ($25,000) per quarter to
Twenty Thousand Dollars ($20,000) per quarter.
D.
Paragraph 2.6 is amended to add the following:
2.6 Improvements. Licensor shall promptly notify Licensee of all improvements heretofore or hereinafter made by Licensor relating to
exercise machines covered by U.S. Patent No. 5,336,146, and Licensee shall have the exclusive right and license to use such
improvements without further payment to Licensor.
E.
The following new Paragraph 3.4 is added to the agreement:
3.4 Upon request by Licensee and as long as Licensee is not in default under this Agreement, Licensor will assign the entire right, title
and interest in and to the TREAD CLIMBER trademark and any registration granted thereon to Licensee.
F.
In Paragraph 4.1, the reference to Paragraph 4.1D
ii
is changed to Paragraph 4.2D
ii
.
IN WITNESS WHEREOF, the parties have caused this amendment to be executed and delivered this 7th day of October, 1999.
G.
In Paragraph 5.3, the reference to Article 3.1 is changed to Article 4.2A.
PIAGET ASSOCIATES. L.L.C.
By
/s/ Gary D. Piaget
Gary D. Piaget, President
/s/ Gary D. Piaget
Gary D. Piaget
DIRECT FOCUS, INC.
By
/s/ Brian R. Cook
Brian R. Cook, President