Nautilus 2009 Annual Report Download - page 319

ARTICLE X
EVENTS OF DEFAULT
Section 10.1 Events of Default . The occurrence of any of the following events shall constitute an “Event of Default” under this
Agreement:
(a) Borrower shall fail to pay any amount of principal (and such failure is not cured within three days) or interest (and such
failure is not cured within five days) owed pursuant to the Note when due, or Borrower shall fail to pay any other amount payable by Borrower
under this Agreement or any other the Loan Document when due (and such failure is not cured within 30 days);
(b) Any representation or warranty made by Borrower under or in connection with this Agreement or any Loan Document
shall prove to have been incorrect in any material respect when made;
(c) Borrower shall fail to perform or observe (i) any covenant set forth in Section 7.8, Section 7.10, Article VIII (subject to
Section 8.5) or Article IX, or (ii) any other covenant, obligation or term hereunder or under any of the Loan Documents and such failure is not
cured within 30 days of the earlier of Lender’s written notice thereof or Borrower becoming aware of such failure;
(d) Borrower shall (i) fail to pay when due (after any applicable grace period) any amount payable in respect of any
Indebtedness (including undrawn, committed, or available amounts and including amounts owing to all creditors under any combined or
syndicated credit arrangement) exceeding $250,000 in principal amount, unless the amount in question is subject to a bona fide dispute by
Borrower and has not been determined by a court, arbitrator, or other finder of fact to be owed by Borrower, or (ii) fail to observe or perform
(after any applicable notice or grace period) any term, covenant, or agreement evidencing or securing such Indebtedness, and the effect of such
failure to observe or perform is to cause the acceleration of the maturity of such Indebtedness;
(e) A judgment or order for the payment of money in excess of $250,000 shall be entered against Borrower by any court, or a
warrant of attachment or execution or similar process shall be issued or levied against property of Borrower that in the aggregate exceeds
$250,000 in value, the payment of which is not fully covered by insurance in excess of any deductibles not exceeding $50,000 in the aggregate,
and such judgment, order, warrant, or process shall continue undischarged or unstayed or unbonded for 60 days;
(f) Any occurrence or event that has a Material Adverse Effect; or
(g) Borrower shall admit in writing its inability to pay its debts, or shall make a general assignment for the benefit of
creditors; or any proceeding shall be instituted by Borrower in any jurisdiction seeking to adjudicate Borrower bankrupt or insolvent, or seeking
reorganization, arrangement, adjustment, or composition of Borrower or Borrower’s debt under any law relating to bankruptcy, insolvency, or
reorganization or relief of debtors, or seeking appointment of a receiver, trustee, or other similar official for Borrower for such part of
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