Nautilus 2009 Annual Report Download - page 334

10.3 Continuation of Insurance . All policies of insurance shall provide for at least 30 days prior written cancellation notice to the
Secured Party. In the event of failure by the Debtor to provide and maintain insurance as herein provided, the Secured Party may, at its
option, provide such insurance and charge the amount thereof to the Debtor. The Debtor shall furnish the Secured Party with certificates of
insurance and policies evidencing compliance with the foregoing insurance provision.
11. Collateral Protection Expenses; Preservation of Collateral .
11.1 Expenses Incurred by Secured Party . In the Secured Party’
s discretion, if the Debtor fails to do so, upon giving the Debtor prior
written notice thereof, the Secured Party may discharge taxes and other encumbrances at any time levied or placed on any of the Collateral,
maintain any of the Collateral, make repairs thereto and pay any necessary filing fees or insurance premiums. The Debtor agrees to
reimburse the Secured Party promptly on demand for all expenditures so made. The Secured Party shall have no obligation to the Debtor to
make any such expenditures, nor shall the making thereof be construed as the waiver or cure of any Default or Event of Default.
11.2 Secured Party’s Obligations and Duties
. Anything herein to the contrary notwithstanding, the Debtor shall remain obligated and
liable under each contract or agreement comprised in the Collateral to be observed or performed by the Debtor thereunder. The Secured
Party shall not have any obligation or liability under any such contract or agreement by reason of or arising out of this Agreement or the
receipt by the Secured Party of any payment relating to any of the Collateral, nor shall the Secured Party be obligated in any manner to
perform any of the obligations of the Debtor under or pursuant to any such contract or agreement, to make inquiry as to the nature or
sufficiency of any payment received by the Secured Party in respect of the Collateral or as to the sufficiency of any performance by any
party under any such contract or agreement, to present or file any claim, to take any action to enforce any performance or to collect the
payment of any amounts which may have been assigned to the Secured Party or to which the Secured Party may be entitled at any time or
times. The Secured Party’s sole duty with respect to the custody, safe keeping and physical preservation of the Collateral in its possession,
under Section 9-207 of the Uniform Commercial Code of the State or otherwise, shall be to deal with such Collateral in the same manner
as the Secured Party deals with similar property for its own account.
12. Securities and Deposits . The Secured Party may at any time following and during the continuance of a Default and Event of
Default, at its option, transfer to itself or any nominee any securities constituting Collateral, receive any income thereon and hold such income as
additional Collateral or apply it to the Obligations. Whether or not any Obligations are due, the Secured Party may, following and during the
continuance of a Default and Event of Default, demand, sue for, collect, or make any settlement or compromise which it deems desirable with
respect to the Collateral. Regardless of the adequacy of Collateral or any other security for the Obligations, any deposits or other sums at any
time credited by or due from the Secured Party to the Debtor may at any time be applied to or set off against any of the Obligations.
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