Nautilus 2009 Annual Report Download - page 309

Section 7.5 Keeping of Books and Records
. Borrower shall keep adequate records and books of account in which entries complete in
all material respects will be made, in accordance with GAAP, reflecting all financial transactions of Borrower.
Section 7.6 Maintenance of Property . Borrower shall maintain and preserve all of Borrower’s properties which are material to its
business in good working order and condition, ordinary wear and tear and casualty (to the extent insured) excepted, and shall from time to time
make all needed repairs, renewals, or replacements so that the efficiency of such properties shall be fully maintained and preserved.
Section 7.7 Other Obligations . Borrower shall pay and discharge before the same shall become delinquent all material Indebtedness,
Taxes, and other material obligations for which Borrower is liable, or to which the income or property of the Borrower is subject, and all claims
for labor, materials, or supplies that, if unpaid, might become by law a Lien upon assets of the Borrower, except such Indebtedness, Taxes,
claims, and obligations that are being contested in good faith by appropriate proceedings.
Section 7.8 Insurance . Borrower shall keep in force upon all of Borrower’s properties and operations policies of insurance carried
with companies in such amounts and covering all such risks as shall be customary in the industry (as determined by Lender in its Permitted
Discretion) naming Lender as a loss payee in respect of insurance covering the Collateral. Borrower, within 30 days of request, shall deliver to
Lender certificates of insurance or duplicate policies evidencing such coverage and a schedule setting forth the amounts and types of insurance
then maintained by Borrower.
Section 7.9 Compliance with Laws . Subject to the right of Borrower to contest any laws, regulations, rules or orders of any
Governmental Authority in good faith by appropriate legal proceedings, and provided that Borrower establishes and maintains adequate reserves
to the extent required by GAAP in relation to the matter being contested, Borrower shall comply with all laws, regulations, rules, and orders of
any Governmental Authority applicable to Borrower, including, but not limited to, Environmental Laws, Consumer Protection Laws and ERISA,
except where failure to so comply could not be reasonably likely to result in a Material Adverse Effect.
Section 7.10 Financial Information/Reporting . Borrower shall deliver to Lender the statements, reports, and other information listed
below at the times noted below:
(a) On or before May 15, 2010, and within 45 days of the end of each calendar quarter thereafter, the unaudited balance sheet
and statements of cash flow, income, and retained earnings of Borrower for the immediately preceding quarter (and for the period from the start
of Borrower’s then-current fiscal year through the last day of the immediately preceding quarter) on a consolidated and consolidating basis (it
being agreed that the furnishing of Borrower’s report on Form 10-Q for such fiscal quarter as filed with the SEC will satisfy such requirement);
(b) On or before March 25, 2010, and the 25 day of each month thereafter, a written report in the form of Exhibit A attached
hereto describing in reasonable
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