Nautilus 2008 Annual Report Download - page 77

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Table of Contents
Item 9B. Other Information
Because of the timing of the event, we have opted to include the following disclosure in this Item 9B, rather than filing a separate Form 8-K
under Item 1.01 “Entry into a Material Definitive Agreement.”
Effective March 10, 2009, Nautilus, Inc. and its subsidiary, Nautilus International S.A., entered into a Fifth Amendment to Loan and Security
Agreement (the “Amendment”) in respect of the Loan and Security Agreement dated as of January 16, 2008 between the Company and Bank of
America, N.A. The Amendment reduced the amount of the credit line from $40.0 million to $30.0 million. As amended, the actual amount the
Company is able to borrow under the Loan Agreement is calculated as the lower of either $30 million, or the borrowing capacity, which is based
primarily on the month-end value of inventory and accounts receivable in the U.S., as adjusted for certain items identified in the Loan
Agreement. The Amendment also provides for a 1% increase in applicable interest rates, provides for an increase in the fees payable in
connection with the unused portion of the credit line and amendment to certain loan covenants. The foregoing description is not intended to be a
complete description of the Amendment, and is qualified in its entirety by reference to the full text of the Amendment, which is filed as Exhibit
10.25 to this Annual Report on Form 10-K.
73