Nautilus 2006 Annual Report Download - page 152

15
Article 3.7
Condition of Facilities
.
(a) Use of the Real Property for the various purposes for which it is presently being used is permitted as of right under all
applicable land and building use legal requirements. All Improvements are in compliance with all applicable legal
requirements, are in good repair and in good condition, ordinary wear and tear excepted, except for such minor defects as do
not interfere with the continued use of such Improvements in the conduct of the normal operations of the Business. No part
of any Improvement encroaches on any land not included in the Real Property, and there are no buildings, structures, fixtures
or other Improvements primarily situated on adjoining property which encroach on any part of the Land. The Land for each
owned Facility abuts on and has direct vehicular access to a public road or has access to a public road via a permanent
arrangement benefiting such Land and comprising a part of the Real Property, is supplied with public or quasi-
public utilities
and other services appropriate for the operation of the Facilities located thereon and is not located within any area subject to
special environmental regulation as an environmentally sensitive area or any similar restriction. Seller, after reasonable
inquiry, is unaware of any plan or proposed plan to modify or realign any street or highway or any existing or proposed
requisition proceeding that would result in the taking of all or any part of any Facility or that would prevent or hinder the
continued use of any Facility as heretofore used in the conduct of the Business.
(b) Each item of Tangible Personal Property is in good repair and good operating condition, ordinary wear and tear excepted, is
suitable for immediate use in the ordinary course of business except such minor defects as do not interfere with the
continued use of such Tangible Personal Property in the conduct of the normal operations of the Business. No item of
Tangible Personal Property is in need of repair or replacement other than as part of routine maintenance in the ordinary
course of business. Except as disclosed in Schedule 3.7(b), all Tangible Personal Property used in the Business is in the
possession of Seller.
Article 3.8 Compliance with Laws . Except as described in Schedule 3.8, Seller is in compliance, and there exists no alleged non-
compliance, with all applicable statutes, orders, rules and regulations promulgated by any Government Authority relating in
any material respect to the Assets or the operation and conduct of the Business, or the use of the properties of the Business
and neither Seller nor any Shareholder has received any notice of alleged violation of any such statute, order, rule or
regulation. Schedule 3.8 lists all material governmental licenses, permits, product registrations, filings, authorizations and
approvals and any pending applications for any thereof relating to the conduct of the Business or the use of properties held
by Seller and such licenses, permits, product registrations, filings, authorizations and approvals are all the governmental
licenses, permits, filings, authorizations and approvals necessary to conduct the Business or to use the Assets as currently
conducted or used.