Nautilus 2006 Annual Report Download - page 119

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Pacific Standard Time on the day immediately preceding the Closing Date such additional number of Shares issued to •, together
with stock powers relating to such Shares executed by • in blank, so that the market value of all Shares on deposit with the Escrow
Agent on the Closing Date determined using the Average Share Price is Thirty Million United States Dollars ($30,000,000). If the
market value of the Shares on the Determination Date is greater than $30,000,000, Shares with a market value (determined as set
forth above) on the Closing Date in excess of $30,000,000 shall be distributed to Nautilus. If when making any deposit of Shares
hereunder it would be necessary to deposit a fractional Share in order to achieve the $30,000,000 valuation, the number of Shares to
be deposited shall be adjusted upward to the next full Share. The Selling Parties agree that they will cause • to deliver to Nautilus in
a timely manner the stock powers executed in blank by • so that Nautilus may deposit such in escrow hereunder. “Average Share
Price” means the average closing price of Nautilus common stock on the New York Stock Exchange for the 10 trading day period
ending on the Determination Date.
4
(b) Escrow Property . All Shares or funds deposited by Nautilus with the Escrow Agent constituting the Option Exercise Deposit and
all dividends, interest or other income received in respect of such Shares and funds are collectively referred to as the “Escrow
Property”. Any dividends on Shares of Nautilus common stock included in the Escrow Property will be held for the account of the
Selling Parties and released from escrow to the Selling Parties at the time the Shares are distributed in accordance with the terms of
this Agreement. Any interest or other income received in respect of funds included in the Escrow Property on or prior to the
Closing, should it occur, will be held for the account of the Selling Parties and released from escrow to the Selling Parties in
accordance with the terms of this Agreement. Any interest or other income received in respect of funds included in the Escrow
Property after the Closing, should it occur, will be held for the account of the Selling Parties.
3. Release of Escrow Property.
(a) Closing Date Releases . On or before December 31, 2007, Nautilus and the Representative may deliver to the Escrow Agent signed
instructions in substantially the form of Exhibit A hereto (the “Closing Release Instructions”). Upon receipt of the Closing Release
Instructions the Escrow Agent shall deliver and pay to the person or persons designated in the Closing Release Instructions and
release from escrow hereunder the Escrow Property described in the Closing Release Instructions.