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Disney wanted this agreement to be confidential. We declined saying we did not feel it was in our best interests to agree to confidentiality. They accepted that and signed the agreement. Contrary to what some people claim, a confidential clause in an agreement must be agreed to by BOTH parties in order to be enforced.

Settlement Agreement With Disney!

Karen Dudnikov
Michael Meadors
P.O. Box 87
Hartsel, CO 80449

Re: TabberOne eBay Auction Nos. 2136485419; 2136485442; and 2136485445

February 3, 2003

Dear Mr. Meadors and Ms. Dudnikov:

This will confirm our agreement to settle our dispute concerning your eBay auction numbers 2136485419; 2136485442; and 2136485445 (the "Subject Auctions") and the declaratory relief action you have filed in the United States District Court for the District of Colorado, (the "Lawsuit") which has been assigned Case No. 02-WM-2402(PAC), and originally was styled as "TABBER'S TEMPTATIONS, KAREN DUDNIKOV, a/k/a TABBERONE, MICHAEL MEADORS Pro Se Plaintiffs vs. DISNEY ENTERPRISES, a Delaware Corporation Defendant" and in an amended complaint was styled "KAREN DUDNIKOV, a/k/a TABBERONE, MICHAEL MEADORS Pro Se Plaintiffs vs. DISNEY ENTERPRISES, a Delaware Corporation Defendant."

1. Disney Enterprises, Inc. ("DEI") agrees that once a copy of this letter, signed by you both, and a conformed copy of your request for dismissal of the Lawsuit, filed with the appropriate court, is returned to me, DEI will ask eBay not to count the take down notice on the three Subject Auctions against you, copying you on the e-mail. Also in the future DEI will forbear from requesting that eBay or your other ISP take down your website at TabberOne.com or any of your auctions of your hand-crafted goods made from licensed fabric on the ground that such goods constitute unauthorized derivative works. (It is understood that this forbearance applies only to you, using seller name "Tabberone" or "Tabber's Temptations" via your website TabberOne.com and not to any other seller who may engage in similar activities.)

2. You represent that you have already stopped and agree that in the future you will no longer make or use copies of DEI's copyrighted and/or trademark characters (or other intellectual properties) in connection with your business except it is understood that you make and sell hand-crafted items from licensed fabric bearing DEI properties and will use photographs, including close-up shots of the licensed fabric used to make the item, as reasonably necessary to show the item for sale in a particular auction and to describe the item as being made from licensed Disney fabric. Also, you will arrange for dismissal of the Lawsuit including any follow up required after you file your request for dismissal.

3. DEI and you both recognize that mistakes may occur on either side in the future. If a representative of DEI in good faith requests a take down of a future auction or if you in good faith use a DEI intellectual property in a manner inconsistent with this agreement, the aggrieved party will contact the other; remind her/him/it of the terms of this agreement; and try in good faith to resolve any problem by discussion with the other before resorting to other remedies.

Very truly yours,

Mary Fossier

AGREED: ____________________________ ___________________________
Karen Dudnikov Michael Meadors

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