Nautilus 2009 Annual Report Download - page 217

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19
creditors. The Licenses granted herein shall not be assignable by any bankruptcy trustee or bankruptcy estate, trustee,
receiver, assignee for the benefit of creditors, secured party or other person or entity taking possession of Buyer’
s assets under
any of the events set forth in this paragraph. Buyer, or its successor in any such proceeding, shall not oppose any efforts by
Nautilus to reclaim the licenses or to oppose the lifting of any stay imposed by the Court or Statute to reclaim the License and
rights thereunder and, Buyer shall not take any actions inconsistent with the termination provided for herein.
4.4.
Abandonment: if Buyer abandons use of the Nautilus Marks and ceases all use of the Nautilus Marks for a consecutive period
of three years, Nautilus may terminate the licenses as to the Nautilus Marks.
5.
Quality Control and Use of Licensed Marks:
5.1. The Licensed Marks are an important asset to Nautilus and all uses of the Licensed Marks by Buyer shall inure to the sole
benefit of Nautilus. Buyer shall at all times use the Nautilus Marks properly and only for the sale of Fitness Products and
Accessories that meet the Quality Control standards herein. Buyer shall establish procedures to insure that all goods sold
bearing a Nautilus Mark or Commercial Mark adhere to Nautilus’ minimum quality standards. Generally, goods that conform
to the quality of goods manufactured and sold by as of the effective date shall conform to the quality standards.
5.2.
Buyer shall only sell goods that comply with EN or ASTM standards for studio/commercial or institutional goods,
respectively.
5.3. Buyer shall comply with Consumer Product Safety Commission rules and regulations. Buyer shall have a customer complaint
monitoring and reporting process.
5.4. Buyer shall use and display the Nautilus Marks and Commercial Marks in conformance with the Trademark Usage
Guidelines, Schedule E, which dictate appearance and association of the trademarks as applied to the goods. Buyer shall not
create new stylized versions of the Nautilus Marks and shall not create new composite marks that include a Nautilus Mark.
Buyer shall comply with revisions to the Trademark Usage Guidelines with sufficient notice; that is, Nautilus may update the
marks and Buyer shall only use updated versions after reasonable time for conversion and sale of any inventory having earlier
versions of the same.