Research Two Limited Partnership - Page 5




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          behalf of Research II for the purpose of developing and                     
          perfecting the new technology and associated patentable and                 
          nonpatentable inventions, know-how, and trade secrets.                      
          All property rights in the new technology and all items of new              
          technology were to be the sole and exclusive property of                    
          Research II.                                                                
               In consideration of CemCom's performing research and                   
          experimental services on behalf of Research II, the research and            
          development agreement provided that Research II was obligated to            
          pay CemCom $2,750,000, plus interest at an annual rate of 10                
          percent of the unpaid balance.  Payments were to be made as                 
          follows:  (1) $950,000 in cash upon execution of the research               
          and development agreement; and (b) $1,800,000 in a promissory               
          note.  Payments under the promissory note were to be made as                
          follows:  (1) $325,000 of principal payable on November 1, 1983;            
          (2) $275,000 of principal payable on January 3, 1984; and (3)               
          $1,200,000 plus all accrued and unpaid interest at the annual               
          rate of 10 percent (totaling $294,583.33) payable on December               
          31, 1984.  All such payments were with recourse to Research II              
          and its partners.                                                           
               The research and development agreement also provided that              
          Research II could notify CemCom on or before December 31, 1984,             
          and the $1,494,583.33 could be restated as principal and                    
          amortized at 14 percent per year in nine consecutive semiannual             






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