Nautilus 2003 Annual Report Download - page 79

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THIRD AMENDMENT TO LICENSE AGREEMENT
The License Agreement executed by Piaget Associates, LLC on April 11, 1999 and by Direct Focus, Inc. on April 26, 1999, along with
the First and Second Amendments thereto, is hereby amended as follows:
A.
Paragraph 4.1 in the License Agreement is replaced with the following paragraph:
“Licensee shall use its best reasonable efforts to develop, market and sell Licensed Goods. Licensee commits to make a national roll-out
of the contemplated direct response commercial by March 31, 2002. Failure to do so will be an event of default giving Licensor the right
of termination pursuant to Paragraph 5.2(B). However, in the event Licensee has not commenced a national roll-
out of the direct response
commercial by March 31, 2002, Licensee may extend its license rights for up to an additional three (3) months by continuing to pay the
minimum quarterly royalty in the amount of $20,000 per quarter. Said payments would not count towards the advanced royalty.
Additionally, Licensee agrees to develop, market and offer for sale a club version within two (2) years from the date of this Amendment.
Failure to develop, market and offer for sale a club version within two (2) years from the date of this Amendment will result in
termination of Licensee’s right to exclusivity to develop, market and offer for sale a club version of the Licensed Goods.”
IN WITNESS WHEREOF, the parties have caused this Amendment to be executed and delivered this 11 day of April, 2001.
B. Licensee acknowledges that it is currently paying minimum quarterly royalties in the amount of $20,000 per quarter and agrees that until
such time as a product is being marketed under this Agreement (or unless the License is terminated), Licensee shall continue to pay
minimum quarterly royalties within seven (7) days after the end of the calendar quarter. At such time Licensee begins marketing a
product under this Agreement, the quarterly royalties will be due in accordance with the original Agreement and the first two (2)
Amendments thereto.
PIAGET ASSOCIATES, LLC
DIRECT FOCUS, INC.
/s/ Gary D. Piaget
/s/ Brian R. Cook
Gary D. Piaget, President
Brian R. Cook, President
/s/ Gary D. Piaget
Gary D. Piaget