Nautilus 2009 Annual Report Download - page 215

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4.2.
Termination For Cause:
4.2.1.
Nautilus may terminate the licenses granted herein upon the following events:
(a) Buyer’s registration or attempt to register a trademark or domain name confusingly similar to a Nautilus
owned registered or common law trademark, after written notice to Buyer and Buyer’s failure to cure (e.g.,
abandon the registration) within 10 business days after receipt of notice;
(b)
Buyer
’
s failure to pay royalties after written notice to Buyer and Buyer
’
s failure to cure within 30 business
days after receipt of notice;
(c)
Upon a third incidence within any rolling five year period of Buyer
’
s late payment of royalties owing to
Nautilus more than 30 days after a due date, without notice by Nautilus;
(d) Upon any lawsuit or counterclaim or administrative action by Buyer against Nautilus alleging patent
infringement or challenging or contesting in any way the validity or enforceability of any of the Licensed
Patents, the patent licenses granted herein shall automatically and immediately terminate;
(e)
Upon any lawsuit or counterclaim or administrative action by Buyer against Nautilus alleging trademark
infringement or challenging or contesting in any way the validity or enforceability of any of the Licensed
Marks, the trademark licenses granted herein shall automatically and immediately terminate;
(f) Upon material breach of any term of this Agreement by Buyer after written notice to Buyer and Buyer’s
failure to cure within 30 days after receipt of notice;
(g)
Upon any improper assignment or sublicense by Buyer of the rights granted herein after written notice to
Buyer and Buyer
’
s failure to cure within 30 business days after receipt of notice;
(h) In the event Buyer ceases to operate or ceases to conduct business in the Fitness Products for a period of
six consecutive months;