Nautilus 2003 Annual Report Download - page 78

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SECOND 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.
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 April 30, 2000. 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 April 30, 2000, Licensee may extend its license rights for up to an additional eighteen (18) months by paying a minimum
quarterly royalty payment 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 and one-half (2 ½) years from the date of
this Agreement. Failure to develop, market and offer for sale a club version within two and one-half (2 ½) years from the date of this
Agreement will result in termination of Licensee’
s right to exclusivity to develop, market and offer for sale a club version of the Licensed
Goods.”
Dated this 26th day of April, 2000.
B. Licensee and Licensor agree that, as referred to within this document, the term “quarter” will refer to calendar quarters. The first such
calendar quarter for which minimum royalty payments are due shall be the quarter ending June 30, 2000. Minimum royalties due for that
quarter will be pro-rated from April 26 through June 30, 2000. The pro-rated amount of royalties for that period is $14,505.50. It is
agreed between the parties that the royalties for this quarter will be paid within seven (7) days of the signing of this Amendment to the
Agreement. Future royalties will be due as outlined in Section 4 of the License Agreement.
/s/ Brian R. Cook
/s/ Gary D. Piaget
Brian R. Cook, President
Gary D. Piaget
DIRECT FOCUS, INC.
TEAM PIAGET