Nautilus 2006 Annual Report Download - page 138

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ASSET PURCHASE AGREEMENT
THIS ASSET PURCHASE AGREEMENT (hereinafter, "Agreement") , dated as of
2007, is entered into by and among the
following parties (each a " Party " and collectively, the " Parties "):
PRELIMINARY STATEMENTS
1
NAUTILUS, INC.
, a Washington corporation (
"Nautilus")
;
2. [ NAUTILUS WOFE ], a wholly foreign-owned limited liability company duly organized and existing under the laws of the PRC
(
"Buyer"
);
3. LAND AMERICA HEALTH & FITNESS CO., LTD. , a wholly foreign-owned limited liability company duly organized and existing
under the laws of the PRC ("
Seller
");
(*)
or a "
Shareholder
"), who together with his spouse, (*), are the indirect sole shareholders of Seller; and
(*)
or a "
Shareholder
"), who together with her spouse, (*), are the indirect sole shareholders of Seller.
1. Seller is engaged in the manufacture of certain of Nautilus’s proprietary line of health and fitness equipment and other fitness equipment
(the
"Business"
).
2.
Nautilus and Seller have entered into a Purchase Option Agreement, dated effective January 29, 2007 (the
"Option Agreement" ),
pursuant to which Nautilus was granted an option to purchase substantially all of the assets related to the Business.
3. Certain of the assets used in the Business and owned by Seller were previously owned and operated by World Gear Sports Goods Co.,
Ltd. (
"World Gear"
).
4. Upon the terms and subject to the conditions of this Agreement, Seller is willing to sell substantially all of the assets of the Business to
Buyer, and Nautilus is willing to cause Buyer to purchase such assets from Seller.
5. Together with this Agreement, the Parties are entering into an Escrow Agreement in the form attached hereto as Exhibit A (the "Escrow
Agreement"
).
(*) 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.