Nautilus 2006 Annual Report Download - page 118

Download and view the complete annual report

Please find page 118 of the 2006 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 201

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201

THIS ESCROW AGREEMENT , dated as of •, 2007 (this “Agreement”), is entered into by and among NAUTILUS, INC ., a Washington
corporation (“Nautilus”), [NAUTILUS ACQUISITION SUBSIDIARY], a (“Buyer”), TREURIVER
INVESTMENTS LIMITED, a British Virgin Islands company (“Seller”), (*) and (*) and Seller are sometimes collectively referred to as the
“Selling Parties” or individually as a “Selling Party”), (*) , as representative of the Selling Parties (the “Representative”) and
, as escrow agent (the “Escrow Agent”).
PRELIMINARY STATEMENTS
NOW, THEREFORE , the parties hereto hereby agree as follows:
3
Exhibit
ESCROW AGREEMENT
A.
Nautilus and Seller have entered into a Purchase Option Agreement, dated effective January 29, 2007 (the
“Option Agreement”).
Capitalized terms used in the Option Agreement are used herein with the same meaning, unless otherwise defined herein.
B.
This is the Escrow Agreement referred to in the Option Agreement.
C.
Nautilus may exercise the Option and purchase the Assets or cause Buyer to purchase the Assets.
1. Appointment of Escrow Agent . Nautilus and the Selling Parties hereby appoint the Escrow Agent to act as escrow agent in accordance
with the terms and conditions of this Agreement, and the Escrow Agent hereby accepts such appointment and agrees to act as escrow
agent hereunder in accordance with such terms and conditions.
Establishment of Escrow
.
(a) Option Exercise Deposit. In accordance with Section 3.2 of the Option Agreement, Nautilus has deposited an Escrow Exercise
Deposit with the Escrow Agent consisting of either (i) Thirty Million United States Dollars ($30,000,000) or (ii) unregistered shares
of Nautilus common stock (“Shares”) with a market value (determined in accordance with the Option Agreement) of Thirty Million
United States Dollars ($30,000,000) issued to • together with stock powers relating to such Shares executed by • in blank. If
(a) Nautilus elects to deposit Shares with the Escrow Agent as described in clause (i) above, and (b) the market value of the Shares
on deposit hereunder on the third day prior to the Closing Date (the “Determination Date”) determined using the Average Share
Price (as defined below) is less than Thirty Million United States Dollars ($30,000,000), then Nautilus shall deposit with the
Escrow Agent, by no later than 4:30 p.m.
(*) Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.