Nautilus 2004 Annual Report Download - page 75

4. Expenses . The Company will reimburse Employee for all necessary and reasonable travel, entertainment and other business expenses
incurred by him in the performance of his/her duties hereunder, upon receipt of signed itemized lists of such expenditures with appropriate
back-up documentation, and/or in accordance with such other reasonable procedures as the Company may adopt generally from time to time.
5. Health and Welfare Benefits . Upon satisfaction of eligibility criteria, the Employee shall be eligible to receive employee benefits, if any,
generally provided to its employees by Employer, including, if provided, medical insurance, paid-time off. Such benefits may be amended or
discontinued by Employer at any time.
The company will honor four weeks of paid-time off (PTO), upon commencement of employment and each year thereafter. If you shall end
your employment prior to your one
-year anniversary any accrued PTO not taken will not be reimbursed upon termination.
You will be expected to relocate to the Vancouver, Washington geographic area before September 2003. The company will reimburse for
allowable moving expenses as described under IRS publication 521 upon agreement of reviewing at least three different relocation proposals. If
you shall terminate your employment or if your employment is terminated for cause prior to your one
-year anniversary, you will owe The
Nautilus Group, Inc. any reimbursed amount. Employee will also receive monthly payments for corporate housing at actual cost not to exceed
$1,500.00 per month for a period not to exceed ten months. This will be payable on the first payroll check date of each month beginning on
October 4, 2002.
6. Termination . The parties acknowledge that Employee’s employment with the Company is “at-will” and may be terminated by either party
with or without cause. No one other than the President of the Company or the Board of Directors has the power to change the at-will character
of the employment relationship. As discussed below, however, the various possible ways in which Employee’s employment with the Company
may be terminated will determine the payments that may be due to Employee under this Agreement. As used in this Agreement, the following
terms have the following meanings:
(a) Cause . As used in this Agreement, Cause means (i) Employee’s indictment or conviction in a court of law for any crime or offense
that in Employer’s reasonable judgment makes Employee unfit for continued employment, prevents Employee from performing Employee’s
duties or other obligations or adversely affects the reputation of Employer; (ii) dishonesty by Employee related to his/her employment; (iii)
violation of a key Employer policy or this Agreement by Employee (including, but not limited to, acts of harassment or discrimination, use of
unlawful drugs or drunkenness on Employer’s premises during normal work hours); (iv) insubordination (i.e. conduct such as refusal to follow
direct orders of the President or other individuals(s) to whom Employee reports; (v) dereliction of duty by Employee (e.g., failure to perform
minimum duties after warning) and reasonable opportunity to correct; (vi) Employee’s competition with Employer, diversion of any corporate
opportunity or other similarly serious conflict of interest or self-dealing incurring to Employee’s direct or indirect
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