Nautilus 2001 Annual Report Download - page 78

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CESSATION OF ADVANCES. If Lender has made any commitment to make any Loan to Borrower, whether under this Agreement or under
any other agreement, Lender shall have no obligation to make Loan Advances or to disburse Loan proceeds if:
(a) Borrower or any Guarantor is in default under the terms of this Agreement or any of the Related Documents or any other agreement that
Borrower or any Guarantor has with Lender; (b) Borrower or any Guarantor becomes insolvent, files a petition in bankruptcy or similar
proceedings, or is adjudged a bankrupt; (c) there occurs a material adverse change in Borrower's financial condition, in the financial condition
of any Guarantor, or in the value of any Collateral securing any Loan; (d) any Guarantor seeks, claims or otherwise attempts to limit, modify or
revoke such Guarantor's guaranty of the Loan or any other loan with Lender; or (e) Lender in good faith deems itself insecure, even though no
Event of Default shall have occurred.
ACCESS LAWS. Without limiting the generality of any provision of this Agreement requiring Borrower to comply with applicable laws, rules,
and regulations, Borrower agrees that it will, at all times, comply with applicable laws relating to disabled access including, but not limited to,
all applicable titles of the Americans with Disabilities Act of 1990.
ADDITIONAL DEFINITIONS.
CURRENT ASSETS. The words "Current Assets" mean Borrower's cash on hand plus Borrower's receivables plus inventory.
CURRENT LIABILITIES. The words "Current Liabilities" mean all Borrower's notes payable plus borrower's accounts payable plus
Borrower's income taxes payable plus Borrower's accruals plus Borrower's current portion of long-term debt.
CURRENT RATIO. The words "Current Ratio" mean Borrower's total Current Assets divided by Borrower's total Current Liabilities.
OUT OF DEBT PERIOD. Borrower agrees with Lender that Borrower shall rest the Line of Credit Facility with no outstanding principal
balance (not including outstanding standby letters of credit) for a minimum of thirty (30) consecutive days during the term of the loan.
RIGHT OF SETOFF. Borrower grants to Lender a contractual security interest in, and hereby assigns, conveys, delivers, pledges and transfers
to Lender all Borrower's right, title and interest in and to Borrower's accounts with Lender (whether checking, savings, or some other account),
including, without limitation, all accounts held jointly with someone else and all accounts Borrower may open in the future, excluding however
all IRA and Keogh accounts, and all trust accounts for which the grant of a security interest would be prohibited by law. Borrower authorizes
Lender, to the extent permitted by applicable law, to charge or setoff all sums owing on the Indebtedness against any and all such accounts.
EVENTS OF DEFAULT. Each of the following shall constitute of Event of Default under this Agreement:
DEFAULT ON INDEBTEDNESS. Failure of Borrower to make any payment when due on the Loans.
OTHER DEFAULTS. Failure of Borrower or any Grantor to comply with or to perform when due any other term, obligation, covenant or
condition contained in this Agreement or in any of the Related Documents, or failure of Borrower to comply with or to perform any other term
obligation, covenant or condition contained in any other agreement between Lender and Borrower.
DEFAULT IN FAVOR OF THIRD PARTIES. Should Borrower or any Grantor default under any loan, extension of credit, security agreement,
purchase or sales agreement, or any other agreement, in favor of any other creditor of person that may materially affect any of Borrower's
property or Borrower's or any Grantor's ability to repay the Loans or perform their respective obligations under this Agreement or any of the
Related Documents.
2002. EDGAR Online, Inc.