Nautilus 2009 Annual Report Download - page 312

Section 8.2 Liquidity Covenant . Borrower shall not permit Liquidity as of the dates set forth below to be less than the amount set
forth below opposite such date:
Borrower shall not permit Liquidity as of December 31, 2010, and as of the last day of each calendar quarter thereafter to be less than the amount
required below based on Borrower’s Adjusted Continuing Business EBITDA for the four quarters ending on such date:
Section 8.3 Adjusted Continuing Business EBITDA . Borrower shall not permit Adjusted Continuing Business EBITDA to be less
than $2,500,000 for the four quarters ending March 31, 2010, and for the four quarters ending on the last day of each calendar quarter thereafter.
Section 8.4 Capital Expenditures . Borrower shall not make Capital Expenditures in any calendar year in excess of $1,500,000 (the
“Capital Expenditure Limitation”); provided, that in the event Borrower does not expend the entire Capital Expenditure Limitation in any
calendar year, Borrower may carry forward 50 percent of such un-expended amount to the immediately succeeding calendar year. All Capital
Expenditures shall first be applied to reduce the applicable Capital Expenditure Limitation and then to reduce the carry-forward from the
previous calendar year, if any, provided that notwithstanding anything herein to the contrary, Borrower shall not be entitled to carry forward any
un-utilized Capital Expenditure Limitation for more than one year.
Section 8.5 Effect of No Outstanding Revolving Loans . If Borrower fails to perform or observe any financial covenant in
Section 8.1, Section 8.2, Section 8.3, or Section 8.4 of this Agreement on any Testing Date (a “Financial Covenant Failure”) prior to receipt by
Lender of the Non-Cash Secured Election, such Financial Covenant Failure shall not constitute a Default or Event of Default if no Revolving
Loan shall have been outstanding at any time during the calendar quarter ending on such Testing Date.
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Dates
Minimum
Liquidity
March 31, 2010
$
18,000,000
June 30, 2010
$
15,000,000
September 30, 2010
$
15,000,000
Adjusted Continuing Business EBITDA
Minimum
Liquidity
$2,500,000
-
$
5,000,000
$
15,000,000
$5,000,000.01
-
$
7,500,000
$
12,500,000
$7,500,000.01
-
$
10,000,000
$
10,000,000
$10,000,000.01
-
$
12,500,000
$
5,000,000
$12,500,000.01 and above
$
0.00