Cascade Designs, Inc. - Page 7




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               specified in paragraphs (1) * * * until the total                      
               amount of $300,000 is paid.  In computing payment from                 
               year to year, the amount remaining due at the end of                   
               each year will be adjusted according to the inflation                  
               rate so that it will reflect the dollar value in the                   
               year 1977.  * * *                                                      
                              *    *    *    *    *    *    *                         
                    3.  This agreement shall remain in force until all                
               of said U.S. and foreign patents expire or until the                   
               payments have been made in full, whichever occurs                      
               first.                                                                 
                    4. * * * Quarterly, within thirty days after the                  
               first days of January, April, July, and October of each                
               year during the continuance of this agreement, Cascade                 
               Designs, Inc. shall render writting [sic] reports to                   
               James M. Lea, stating in each report the quantities and                
               net selling prices of all air mattresses sold by                       
               Cascade Designs, Inc. during the preceding three                       
               calendar months.  Each such report shall be accompanied                
               by remittance in full covering the payments shown                      
               thereby to be due James M. Lea.                                        
                              *    *    *    *    *    *    *                         
                    6.  If Cascade Designs, Inc. fails to pay James M.                
               Lea the moneys payable under the terms of this                         
               agreement, or fails to keep or perform any other                       
               obligation of the agreement, then James M. Lea may, at                 
               his option terminate this agreement by giving sixty                    
               days written notice, specifying the default complained                 
               of; provided, however, that if Cascade Designs, Inc.                   
               shall, within such sixty days, cure the default                        
               complained of, then the notice shall cease to be                       
               operative and this agreement shall continue on [sic]                   
               full force and effect as though such default had not                   
               occurred; and provided further, that if Cascade Designs                
               shall within such sixty days notify James M. Lea in                    
               writing that it disputes the asserted default, the                     
               matter shall be submitted to arbitration as hereinafter                
               provided.                                                              
               The patent and patent applications covered by the 1979 sales           
          agreement, except the 690 patent, were officially assigned by Lea           






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Last modified: May 25, 2011