Nautilus 2009 Annual Report Download - page 315

(c) Liens for Taxes, assessments, or other governmental charges not delinquent or being contested in good faith and by
appropriate proceedings and with respect to which proper reserves have been taken by Borrower; provided, however, that the Lien shall have no
effect on (i) the priority of the Liens in favor of Lender, other than inchoate tax Liens arising prior to the due date of such taxes, or (ii) the value
of the assets in which Lender has such a Lien, and, provided further, that a stay of enforcement of any such Lien (other than such inchoate tax
Liens) shall be in effect;
(d) Landlords’ and lessors’ Liens in respect of rent not in default, or Liens in respect of pledges or deposits under workers’
compensation, unemployment insurance, social security laws, or similar legislation (other than ERISA), or in connection with appeal and similar
bonds incidental to litigation; mechanics’, warehouseman’s, laborers’, and materialmen’s and similar Liens, if the obligations secured by such
Liens are not then delinquent;
(e) Easements, rights of way, restrictions, and other similar charges or Liens relating to real property and not interfering in a
material way with the ordinary conduct of Borrower’s businesses;
(f) Liens constituting a renewal, extension, or replacement of any Permitted Lien;
(g) Purchase money Liens in connection with Indebtedness permitted under Section 9.2(g);
(h) Deposits of cash with the owner or lessor of premises leased and operated by Borrower in the ordinary course of business
to secure the performance by Borrower of its obligations under the terms of the lease for such premises;
(i) Liens arising from precautionary UCC filings regarding “true” operating leases or the consignment of goods to Borrower;
(j) Liens arising by operation of law under Article 2 of the UCC in favor of a reclaiming seller of goods or buyer of goods,
provided that any such Liens are subordinated under law to the Liens in favor of Lender;
(k) Normal and customary rights of setoff upon deposits in favor of depository institutions, and Liens of a collecting bank on
payment items in the course of collection;
(l) Licenses of intellectual property owned by Borrower and granted to any person in the ordinary course of business and any
restrictions or conditions on transfer, assignment or renewal customarily imposed in a license to use intellectual property;
(m) Judgments and other similar Liens arising in connection with court proceedings that do not constitute a Default or Event
of Default;
(n) Pledges and deposits of cash of less than $100,000 to secure obligations under appeal bonds or as otherwise required in
connection with court proceedings (including, without limitation, surety bonds, security for costs of litigation where required by law and letters
of credit) or any other instruments serving a similar purpose;
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