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            ATTORNEYS AT LAW
1330 Connecticut Avenue, NW
Washington, D.C. 20036-1795

Telephone 202.439.3000
Facsimile 202.429.3902

August 21, 2003
Karen Dudnikov
Michael Meadors
P.O.Box 87
Hartsel, CO 80449

Dear Ms. Dudnikov and Mr. Meadors:

        This letter sets out the terms of the settlement of the dispute between you and Major league Baseball properties ("MLBP").

        1. MLBP will ask eBay to remove any negative record as a result of the suspended Auctions. The form of this request is attachment A. Also in the future MLBP will forbear from requesting that eBay take down your auctions or your other ISP take down your website at for your hand-crafted goods made from MLBP licensed fabric bearing only trademarks of the Major League Baseball Clubs, which goods are of the types of goods currently being sold on your website and on eBay (as well as your intended reversable vests made from licensed fabric bearing the Colorado Rockies baseball club trademarks on one side and the Denver broncos football team trademarks on the other side 1 on the grounds that such goods constitute unauthorized derivative works or constitute trademark infringement.

        2. The parties will dismiss their respective claims and counterclaims in the Action. The form of Stipulation of Dismissal is attachment B.

        3. As soon as this Agreement is fully executed, MLBP will pay your out-of-pocket expenses of $500.00 relating to the filing of the claim.

        4. This agreement is personal to you. It is not assignable or transferable.

        5. In accordance with the spirit of this agreement to resolve amiicably the disputes between the Parties, neither Party will take action against the other or the other's interests, either directly or indirectly, without first notifying the other party of an apparent problem, and the Parties will try to resolve the matter amicably between themselves prior to resorting to other remedies or avenues of resolution.

        Please indicate your acceptance of this Agreement by signing this letter. As theCourt suggested with the case in general, you should consider consulting with an attorney. In all events, once you have signed the letter, please return it to me along with a signed copy of the Stipulation of Dismissal. I will arrange for the execution of these documents by MLBP and the drawing of a check.

Sincerely yours,

William G. Pecau

Accepted and Agreed to:
Karen Dudnikov

Michael Meadors

Major League Baseball Properties, Inc.
By: (signature)
Ethan G. Orlinsky, Esq.
Senior Vice President and General


        1 Of course, MLBP cannot speak on behalf of the Denver Broncos concerning its trademarks and copyrights.