Nautilus 2001 Annual Report Download - page 76

OF INSURANCE IN FORM SATISFACTORY TO LENDER, INCLUDING STIPULATIONS THAT COVERAGES WILL NOT BE
CANCELLED OR DIMINISHED WITHOUT AT LEAST TEN
(10) DAYS' PRIOR WRITTEN NOTICE TO LENDER. EACH INSURANCE POLICY ALSO SHALL INCLUDE AN ENDORSEMENT
PROVIDING THAT COVERAGE IN FAVOR OF LENDER WILL NOT BE IMPAIRED IN ANY WAY BY ANY ACT, OMISSION OR
DEFAULT OF BORROWER OR ANY OTHER PERSON. IN CONNECTION WITH ALL POLICIES COVERING ASSETS IN WHICH
LENDER HOLDS OR IS OFFERED A SECURITY INTEREST FOR THE LOANS, BORROWER WILL PROVIDE LENDER WITH SUCH
LOSS PAYABLE OR OTHER ENDORSEMENTS AS LENDER MAY REQUIRE.
Insurance Reports. FURNISH TO LENDER, UPON REQUEST OF LENDER, REPORTS ON EACH EXISTING INSURANCE POLICY
SHOWING SUCH INFORMATION AS LENDER MAY REASONABLY REQUEST, INCLUDING WITHOUT LIMITATION, THE
FOLLOWING:
(A) THE NAME OF THE INSURER; (B) THE RISKS INSURED; (C) THE AMOUNT OF THE POLICY; (D) THE PROPERTIES
INSURED; (E) THE THEN CURRENT PROPERTY VALUES ON THE BASIS OF WHICH INSURANCE HAS BEEN OBTAINED, AND
THE MANNER OF DETERMINING THOSE VALUES; AND (F) THE EXPIRATION DATE OF THE POLICY.
Other Agreements. COMPLY WITH ALL TERMS AND CONDITIONS OF ALL OTHER AGREEMENTS, WHETHER NOW OR
HEREAFTER EXISTING, BETWEEN BORROWER AND ANY OTHER PARTY AND NOTIFY LENDER IMMEDIATELY IN WRITING
OF ANY DEFAULT IN CONNECTION WITH ANY OTHER SUCH AGREEMENTS.
Loan Fees and Charges. IN ADDITION TO ALL OTHER AGREED UPON FEES AND CHARGES, PAY THE FOLLOWING: Borrower
agrees to pay Lender, prior to or contemporaneously with the initial advance of Loan proceeds, a nonrefundable loan fee in the amount of .25%
of the Loan amount per annum, payable quarterly in arrears, standby letters of credit at 1.0% per annum per letter of credit amount (minimum of
$250.00) due upon issuance of letter of credit, and commercial letters of credit at U.S. Bank's published rates and charges.
Loan Proceeds. USE ALL LOAN PROCEEDS SOLELY FOR THE BORROWER'S BUSINESS OPERATIONS, UNLESS SPECIFICALLY
CONSENTED TO THE CONTRARY BY LENDER IN WRITING.
Taxes, Charges and Liens. PAY AND DISCHARGE WHEN DUE ALL OF ITS
INDEBTEDNESS AND OBLIGATIONS, INCLUDING WITHOUT LIMITATION ALL ASSESSMENTS, TAXES, GOVERNMENTAL
CHARGES, LEVIES AND LIENS OF EVERY KIND AND NATURE, IMPOSED UPON BORROWER OR ITS PROPERTIES, INCOME
OR PROFITS, PRIOR TO THE DATE ON WHICH PENALTIES WOULD ATTACH, AND ALL LAWFUL CLAIMS THAT, IF UNPAID,
MIGHT BECOME A LIEN OR CHARGE UPON ANY OF BORROWER'S PROPERTIES, INCOME, OR PROFITS. PROVIDED
HOWEVER, BORROWER WILL NOT BE REQUIRED TO PAY AND DISCHARGE ANY SUCH ASSESSMENT, TAX, CHARGE,
LEVY, LIEN OR CLAIM SO LONG AS (A) THE LEGALITY OF THE SAME SHALL BE CONTESTED IN GOOD FAITH BY
APPROPRIATE PROCEEDINGS, AND (B) BORROWER SHALL HAVE ESTABLISHED ON ITS BOOKS ADEQUATE RESERVES
WITH RESPECT TO SUCH CONTESTED ASSESSMENT, TAX, CHARGE, LEVY, LIEN, OR CLAIM IN ACCORDANCE WITH
GENERALLY ACCEPTED ACCOUNTING PRACTICES. BORROWER, UPON DEMAND OF LENDER, WILL FURNISH TO LENDER
EVIDENCE OF PAYMENT OF THE ASSESSMENTS, TAXES, CHARGES, LEVIES, LIENS AND CLAIMS, AND WILL AUTHORIZE
THE APPROPRIATE GOVERNMENTAL OFFICIAL TO DELIVER TO LENDER AT ANY TIME A WRITTEN STATEMENT OF ANY
ASSESSMENTS, TAXES, CHARGES, LEVIES, LIENS AND CLAIMS AGAINST BORROWER'S PROPERTIES, INCOME, OR
PROFITS.
Performance. PERFORM AND COMPLY WITH ALL TERMS, CONDITIONS, AND PROVISIONS SET FORTH IN THIS AGREEMENT
AND IN THE RELATED DOCUMENTS IN A TIMELY MANNER, AND PROMPTLY NOTIFY LENDER IF BORROWER LEARNS OF
THE OCCURRENCE OF ANY EVENT WHICH CONSTITUTES AN EVENT OF DEFAULT UNDER THIS AGREEMENT OR UNDER
ANY OF THE RELATED DOCUMENTS.
Operations. MAINTAIN EXECUTIVE AND MANAGEMENT PERSONNEL WITH SUBSTANTIALLY THE SAME QUALIFICATIONS
AND EXPERIENCE AS THE PRESENT EXECUTIVE AND MANAGEMENT PERSONNEL; PROVIDE WRITTEN NOTICE TO
LENDER OF ANY CHANGE IN EXECUTIVE AND MANAGEMENT PERSONNEL; CONDUCT ITS BUSINESS AFFAIRS IN A
REASONABLE AND PRUDENT MANNER AND IN COMPLIANCE WITH ALL APPLICABLE FEDERAL, STATE AND MUNICIPAL
LAWS, ORDINANCES, RULES AND REGULATIONS RESPECTING ITS PROPERTIES, CHARTERS, BUSINESSES AND
OPERATIONS, INCLUDING WITHOUT LIMITATION, COMPLIANCE WITH THE
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