Document:

Security and Pledge Agreement

 Exhibit 10.1 
 SECURITY AND PLEDGE AGREEMENT 
 THIS SECURITY AND PLEDGE AGREEMENT (this
“Agreement”) is entered into as of October 5, 2007 among NAUTILUS, INC., a Washington corporation (the “Borrower”), the other parties identified as “Obligors” on the signature pages hereto and such
other parties that may become Obligors hereunder after the date hereof (together with the Borrower, individually an “Obligor”, and collectively the “Obligors”) and BANK OF AMERICA, N.A., in its capacity as
administrative agent (in such capacity, the “Administrative Agent”) for the holders of the Secured Obligations (defined below). 
 RECITALS 
 WHEREAS, pursuant to that certain Credit Agreement dated as of February 14, 2007 (as amended, modified,
extended, renewed or replaced from time to time, the “Credit Agreement”) among the Borrower, the Guarantors identified therein, the Lenders identified therein and the Administrative Agent, the Lenders have agreed to make Loans and
issue Letters of Credit upon the terms and subject to the conditions set forth therein; and 
 WHEREAS, this Agreement is required by the
terms of the Credit Agreement. 
 NOW, THEREFORE, in consideration of these premises and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
  

	 	1.	Definitions. 

 (a) Capitalized terms
used and not otherwise defined herein shall have the meanings ascribed to such terms in the Credit Agreement, and the following terms shall have the meanings set forth in the UCC (defined below): Accession, Account, Adverse Claim, As-Extracted
Collateral, Chattel Paper, Commercial Tort Claim, Consumer Goods, Deposit Account, Document, Electronic Chattel Paper, Equipment, Farm Products, Financial Asset, Fixtures, General Intangible, Goods, Instrument, Inventory, Investment Company
Security, Investment Property, Letter-of-Credit Right, Manufactured Home, Money, Proceeds, Securities Account, Security Entitlement, Security, Software, Supporting Obligation and Tangible Chattel Paper. 
 (b) In addition, the following terms shall have the meanings set forth below: 
 “Collateral” has the meaning provided in Section 2 hereof. 
 “Copyright License” means any written agreement, naming any Obligor as licensor, granting any right under any Copyright.

 “Copyrights” means (a) all registered United States copyrights in all Works, now existing or
hereafter created or acquired, all registrations and recordings thereof, and all applications in connection therewith, including, without limitation, registrations, recordings and applications in the United States Copyright Office, and (b) all
renewals thereof. 
 “Patent License” means any agreement, whether written or oral, providing for the grant
by or to a Obligor of any right to manufacture, use or sell any invention covered by a Patent. 
 “Patents”
means (a) all letters patent of the United States or any other country and all reissues and extensions thereof, and (b) all applications for letters patent of the United States or any other country and all divisions, continuations and
continuations-in-part thereof. 
  

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 “Pledged Equity” means, with respect to each Obligor, (i) 100% of
the issued and outstanding Equity Interests of each Domestic Subsidiary of the Borrower that is directly owned by such Obligor and (ii) 65% (or such greater percentage that, due to a change in an applicable Law after the date hereof,
(A) could not reasonably be expected to cause the undistributed earnings of such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States
parent and (B) could not reasonably be expected to cause any material adverse tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the
issued and outstanding Equity Interests not entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary of the Borrower that is directly owned by such Obligor, including the Equity Interests of the
Subsidiaries owned by such Obligor as set forth on Schedule 1(b) hereto, in each case together with the certificates (or other agreements or instruments), if any, representing such shares, and all options and other rights, contractual or
otherwise, with respect thereto, including, but not limited to, the following: 
 (1) all Equity Interests representing a
dividend thereon, or representing a distribution or return of capital upon or in respect thereof, or resulting from a stock split, revision, reclassification or other exchange therefor, and any subscriptions, warrants, rights or options issued to
the holder thereof, or otherwise in respect thereof; and 
 (2) in the event of any consolidation or merger involving the
issuer thereof and in which such issuer is not the surviving Person, all shares of each class of the Equity Interests of the successor Person formed by or resulting from such consolidation or merger, to the extent that such successor Person is a
direct Subsidiary of an Obligor. 
 “Secured Obligations” means, without duplication, (a) all
Obligations and (b) all costs and expenses incurred in connection with enforcement and collection of the Obligations, including the fees, charges and disbursements of counsel. 
 “Trademark License” means any agreement, written or oral, providing for the grant by or to an Obligor of any right to use
any Trademark. 
 “Trademarks” means (a) all trademarks, trade names, corporate names, company names,
business names, fictitious business names, trade styles, service marks, logos and other source or business identifiers, and the goodwill associated therewith, now existing or hereafter adopted or acquired, all registrations and recordings thereof,
and all applications in connection therewith, whether in the United States Patent and Trademark Office or in any similar office or agency of the United States, any state thereof or any other country or any political subdivision thereof, or otherwise
and (b) all renewals thereof. 
 “UCC” means the Uniform Commercial Code as in effect from time to time
in the state of New York except as such term may be used in connection with the perfection of the Collateral and then the applicable jurisdiction with respect to such affected Collateral shall apply. 
 “Work” means any work that is subject to copyright protection pursuant to Title 17 of the United States Code. 

 

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 2. Grant of Security Interest in the Collateral. To secure the prompt payment and performance in
full when due, whether by lapse of time, acceleration, mandatory prepayment or otherwise, of the Secured Obligations, each Obligor hereby grants to the Administrative Agent, for the benefit of the holders of the Secured Obligations, a continuing
security interest in, and a right to set off against, any and all right, title and interest of such Obligor in and to all of the following, whether now owned or existing or owned, acquired, or arising hereafter (collectively, the
“Collateral”): (a) all Accounts; (b) all Chattel Paper; (c) those certain Commercial Tort Claims set forth on Schedule 2(c) hereto; (d) all Copyrights; (e) all Copyright Licenses; (f) all
Deposit Accounts; (g) all Documents; (h) all Equipment; (i) all Fixtures; (j) all General Intangibles; (k) all Instruments; (l) all Inventory; (m) all Investment Property; (n) all Letter-of-Credit Rights;
(o) all Money; (p) all Patents; (q) all Patent Licenses; (r) all Pledged Equity; (s) all Software; (t) all Supporting Obligations; (u) all Trademarks; (v) all Trademark Licenses; and (w) all Accessions
and all Proceeds of any and all of the foregoing. 
 Notwithstanding anything to the contrary contained herein, the security interests
granted under this Agreement shall not extend to (i) Excluded Property and (ii) any General Intangible, permit, lease, license, contract or Instrument of an Obligor if the grant of a security interest in such General Intangible, permit,
lease, license, contract or Instrument in the manner contemplated by this Agreement, under the terms thereof or under applicable Law, is prohibited and would result in the termination thereof or give the other parties thereto the right to terminate,
accelerate or otherwise alter such Obligor’s rights, titles and interests thereunder (including upon the giving of notice or the lapse of time or both); provided that (a) any such limitation described in the foregoing clause
(ii) on the security interests granted hereunder shall only apply to the extent that any such prohibition could not be rendered ineffective pursuant to the UCC or any other applicable Law (including Debtor Relief Laws) or principles of equity
and (b) in the event of the termination or elimination of any such prohibition or the requirement for any consent contained in any applicable Law, General Intangible, permit, lease, license, contract or Instrument, to the extent sufficient to
permit any such item to become Collateral hereunder, or upon the granting of any such consent, or waiving or terminating any requirement for such consent, a security interest in such General Intangible, permit, lease, license, contract or Instrument
shall be automatically and simultaneously granted hereunder and shall be included as Collateral hereunder. 
 The Obligors and the
Administrative Agent, on behalf of the holders of the Secured Obligations, hereby acknowledge and agree that the security interest created hereby in the Collateral (i) constitutes continuing collateral security for all of the Secured
Obligations, whether now existing or hereafter arising and (ii) is not to be construed as an assignment of any Copyrights, Copyright Licenses, Patents, Patent Licenses, Trademarks or Trademark Licenses. 
 3. Representations and Warranties. Each Obligor hereby represents and warrants to the Administrative Agent, for the benefit of the holders of the
Secured Obligations, that: 
 (a) Ownership. Each Obligor is the legal and beneficial owner of its Collateral and has
the right to pledge, sell, assign or transfer the same. There exists no Adverse Claim with respect to the Pledged Equity of such Obligor. 
 (b) Security Interest/Priority. This Agreement creates a valid security interest in favor of the Administrative Agent, for the benefit of the holders of the Secured Obligations, in the Collateral of such
Obligor and, when properly perfected by filing, shall constitute a valid and perfected, first priority security interest in such Collateral (including all uncertificated Pledged Equity consisting of partnership or limited liability company interests
that do not constitute Securities), to the extent such security interest can be perfected by filing under the UCC, free and clear of all Liens except for Permitted Liens. The taking possession by the Administrative Agent of the certificated
securities (if any) evidencing the Pledged Equity and all other Instruments constituting Collateral will perfect and establish the first priority of the Administrative Agent’s security interest in all the Pledged Equity evidenced by such
certificated securities and such 

  

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Instruments. With respect to any Collateral consisting of a Deposit Account, Securities Entitlement or held in a Securities Account, upon execution and
delivery by the applicable Obligor, the applicable Securities Intermediary and the Administrative Agent of an agreement granting control to the Administrative Agent over such Collateral, the Administrative Agent shall have a valid and perfected,
first priority security interest in such Collateral subject to customary setoff rights of depository institutions. 
 (c)
Types of Collateral. None of the Collateral consists of, or is the Proceeds of, As-Extracted Collateral, Consumer Goods, Farm Products, Manufactured Homes or standing timber. 
 (d) Accounts. (i) Each Account of the Obligors and the papers and documents relating thereto are genuine and in all material
respects what they purport to be, (ii) each Account arises out of (A) a bona fide sale of goods sold and delivered by such Obligor (or is in the process of being delivered) or (B) services theretofore actually rendered by such Obligor
to, the account debtor named therein, (iii) no Account of an Obligor is evidenced by any Instrument or Chattel Paper unless such Instrument or Chattel Paper, to the extent requested by the Administrative Agent, has been endorsed over and
delivered to, or submitted to the control of, the Administrative Agent and (iv) the right to receive payment under each Account is assignable. 
 (e) Equipment and Inventory. With respect to any Equipment and/or Inventory of an Obligor, each such Obligor has exclusive possession and control of such Equipment and Inventory of such Obligor except for
(i) Equipment leased by such Obligor as a lessee, (ii) Equipment or Inventory in transit with common carriers, (iii) inventory at third party warehouses or (iv) sample inventory at third party research firms and/or prospective
customers. No Inventory of an Obligor is held by a Person other than an Obligor pursuant to consignment, sale or return, sale on approval or similar arrangement. 
 (f) Authorization of Pledged Equity. All Pledged Equity is duly authorized and validly issued, is fully paid and, to the extent
applicable, nonassessable and is not subject to the preemptive rights of any Person. 
 (g) No Other Equity Interests,
Instruments, Etc. As of the date hereof, (i) no Obligor owns any certificated Equity Interests in any Subsidiary that are required to be pledged and delivered to the Administrative Agent hereunder except as set forth on Schedule 1(b)
hereto, and (ii) no Obligor holds any Instruments, Documents or Tangible Chattel Paper required to be pledged and delivered to the Administrative Agent pursuant to Section 4(a)(i) of this Agreement other than as set forth on Schedule
3(g) hereto. All such certificated securities, Instruments, Documents and Tangible Chattel Paper have been delivered to the Administrative Agent. 
 (h) Partnership and Limited Liability Company Interests. Except as previously disclosed to the Administrative Agent, none of the Collateral (i) is dealt in or traded on a securities exchange or in a
securities market, (ii) by its terms expressly provides that it is a Security governed by Article 8 of the UCC, (iii) is an Investment Company Security, (iv) is held in a Securities Account or (v) constitutes a Security or a
Financial Asset. 
 (i) Consents; Etc. There are no restrictions in any Organization Document governing any Pledged
Equity or any other document related thereto which would limit or restrict (i) the grant of a Lien pursuant to this Agreement on such Pledged Equity, (ii) the perfection of such Lien or (iii) the exercise of remedies in respect of
such perfected Lien in the Pledged Equity as contemplated by this Agreement. Except for (i) the filing or recording of UCC financing statements, (ii) the filing of appropriate notices with the United States Patent and Trademark Office and
the United States 

  

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Copyright Office, (iii) obtaining control to perfect the Liens created by this Agreement (to the extent required under Section 4(a) hereof),
(iv) such actions as may be required by Laws affecting the offering and sale of securities, (v) such actions as may be required by applicable foreign Laws affecting the pledge of the Pledged Equity of Foreign Subsidiaries and
(vi) consents, authorizations, filings or other actions which have been obtained or made, no consent or authorization of, filing with, or other act by or in respect of, any arbitrator or Governmental Authority and no consent of any other Person
(including, without limitation, any stockholder, member or creditor of such Obligor), is required for (A) the grant by such Obligor of the security interest in the Collateral granted hereby or for the execution, delivery or performance of this
Agreement by such Obligor, (B) the perfection of such security interest (to the extent such security interest can be perfected by filing under the UCC, the granting of control (to the extent required under Section 4(a) hereof) or by filing
an appropriate notice with the United States Patent and Trademark Office or the United States Copyright Office) or (C) the exercise by the Administrative Agent or the holders of the Secured Obligations of the rights and remedies provided for in
this Agreement. 
 (j) Commercial Tort Claims. As of the date hereof, no Obligor has any Commercial Tort Claims seeking
damages in excess of $100,000 other than as set forth on Schedule 2(c) hereto. 
 (k) Copyrights, Patents and
Trademarks. 
 (i) To the best of each Obligor’s knowledge, each Copyright, Patent and Trademark of such Obligor is
valid, subsisting, unexpired, enforceable and has not been abandoned. 
 (ii) To the best of each Obligor’s knowledge, no
holding, decision or judgment has been rendered by any Governmental Authority that would limit, cancel or question the validity of any Copyright, Patent or Trademark of any Obligor. 
 (iii) No action or proceeding is pending seeking to limit, cancel or question the validity of any Copyright, Patent or Trademark of any
Obligor, or that, if adversely determined, could reasonably be expected to have a material adverse effect on the value of any Copyright, Patent or Trademark of any Obligor. 
 (iv) All applications pertaining to the Copyrights, Patents and Trademarks of each Obligor have been duly and properly filed, and all
registrations or letters pertaining to such Copyrights, Patents and Trademarks have been duly and properly filed and issued. 
 (v) No Obligor has made any assignment or agreement in conflict with the security interest in the Copyrights, Patents or Trademarks of any Obligor hereunder. 
 4. Covenants. Each Obligor covenants that until such time as the Secured Obligations arising under the Loan Documents have been paid in full and the Commitments have expired or been terminated, such Obligor
shall: 
 (a) Instruments/Chattel Paper/Pledged Equity/Control. 
 (i) If any amount in excess of $100,000 payable under or in connection with any of the Collateral shall be or become evidenced by any
Instrument or Tangible Chattel Paper, or if any property constituting Collateral shall be stored or shipped subject to a Document, ensure that such Instrument, Tangible Chattel Paper or Document is either in the possession of such Obligor at all
times or, if reasonably requested by the Administrative Agent to 

  

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perfect its security interest in such Collateral, is delivered to the Administrative Agent duly endorsed in a manner satisfactory to the Administrative
Agent. Such Obligor shall ensure that any Collateral consisting of Tangible Chattel Paper is marked with a legend acceptable to the Administrative Agent indicating the Administrative Agent’s security interest in such Tangible Chattel Paper.

 (ii) Deliver to the Administrative Agent promptly upon the receipt thereof by or on behalf of an Obligor, all certificates
and instruments constituting Pledged Equity. Prior to delivery to the Administrative Agent, all such certificates constituting Pledged Equity shall be held in trust by such Obligor for the benefit of the Administrative Agent pursuant hereto. All
such certificates representing Pledged Equity shall be delivered in suitable form for transfer by delivery or shall be accompanied by duly executed instruments of transfer or assignment in blank, substantially in the form provided in
Exhibit 4(a)(ii) hereto. 
 (iii) Promptly execute and deliver all agreements, assignments, instruments or other
documents as reasonably requested by the Administrative Agent for the purpose of obtaining and maintaining control with respect to any Collateral consisting of (i) Deposit Accounts, (ii) Investment Property, (iii) Letter-of-Credit
Rights and (iv) Electronic Chattel Paper. 
 (b) Filing of Financing Statements, Notices, etc. Each Obligor shall
execute and deliver to the Administrative Agent such agreements, assignments or instruments (including affidavits, notices, reaffirmations and amendments and restatements of existing documents) as the Administrative Agent may reasonably request and
do all such other things as the Administrative Agent may reasonably deem necessary or appropriate (i) to assure to the Administrative Agent its security interests hereunder, including (A) such instruments as the Administrative Agent may
from time to time reasonably request in order to perfect and maintain the security interests granted hereunder in accordance with the UCC, (B) with regard to Copyrights, a Notice of Grant of Security Interest in Copyrights in the form of
Exhibit 4(b)(i), (C) with regard to Patents, a Notice of Grant of Security Interest in Patents for filing with the United States Patent and Trademark Office in the form of Exhibit 4(b)(ii) hereto and (D) with regard to
Trademarks, a Notice of Grant of Security Interest in Trademarks for filing with the United States Patent and Trademark Office in the form of Exhibit 4(b)(iii) hereto, (ii) to consummate the transactions contemplated hereby and
(iii) to otherwise protect and assure the Administrative Agent of its rights and interests hereunder. Furthermore, each Obligor also hereby irrevocably makes, constitutes and appoints the Administrative Agent, its nominee or any other person
whom the Administrative Agent may designate, as such Obligor’s attorney in fact with full power and for the limited purpose to sign in the name of such Obligor any financing statements, or amendments and supplements to financing statements,
renewal financing statements, notices or any similar documents which in the Administrative Agent’s reasonable discretion would be necessary or appropriate in order to perfect and maintain perfection of the security interests granted hereunder,
such power, being coupled with an interest, being and remaining irrevocable until such time as the Secured Obligations arising under the Loan Documents have been paid in full and the Commitments have expired or been terminated. Each Obligor hereby
agrees that a carbon, photographic or other reproduction of this Agreement or any such financing statement is sufficient for filing as a financing statement by the Administrative Agent without notice thereof to such Obligor wherever the
Administrative Agent may in its sole discretion desire to file the same. 
 (c) Collateral Held by Warehouseman, Bailee,
etc. If any material Collateral is at any time in the possession or control of a warehouseman, bailee or any agent or processor of such Obligor and the Administrative Agent so requests (i) notify such Person in writing of the Administrative
Agent’s security interest therein, (ii) instruct such Person to hold all such Collateral 

  

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for the Administrative Agent’s account and subject to the Administrative Agent’s instructions and (iii) use reasonable best efforts to obtain
a written acknowledgment from such Person that it is holding such Collateral for the benefit of the Administrative Agent. 
 (d) Treatment of Accounts. Not grant or extend the time for payment of any Account, or compromise or settle any Account for less than the full amount thereof, or release any person or property, in whole or in part, from payment
thereof, or allow any credit or discount thereon, other than as normal and customary in the ordinary course of an Obligor’s business. 
 (e) Commercial Tort Claims. (i) Promptly forward to the Administrative Agent an updated Schedule 2(c) listing any and all Commercial Tort Claims by or in favor of such Obligor seeking damages in
excess of $100,000 and (ii) execute and deliver such statements, documents and notices and do and cause to be done all such things as may be required by the Administrative Agent, or required by Law to create, preserve, perfect and maintain the
Administrative Agent’s security interest in any Commercial Tort Claims initiated by or in favor of any Obligor. 
 (f)
Books and Records. If requested by the Administrative Agent, mark its books and records (and shall cause the issuer of the Pledged Equity of such Obligor to mark its books and records) to reflect the security interest granted pursuant to this
Agreement. 
 (g) Nature of Collateral. At all times maintain the material Collateral as personal property and not
affix any such Collateral to any real property in a manner which would change its nature from personal property to real property or a Fixture to real property, unless the Administrative Agent shall have a perfected Lien on such Fixture or real
property. 
 (h) Issuance or Acquisition of Equity Interests. Not without executing and delivering, or causing to be
executed and delivered, to the Administrative Agent such agreements, documents and instruments as the Administrative Agent may reasonably require, issue or acquire any Pledged Equity consisting of an interest in a partnership or a limited liability
company that (i) is dealt in or traded on a securities exchange or in a securities market, (ii) by its terms expressly provides that it is a Security governed by Article 8 of the UCC, (iii) is an Investment Company Security,
(iv) is held in a Securities Account or (v) constitutes a Security or a Financial Asset. 
 (i) Intellectual
Property. 
 (i) Not do any act or knowingly omit to do any act whereby any material Copyright may become invalidated and
(A) not do any act, or knowingly omit to do any act, whereby any material Copyright may become injected into the public domain; (B) notify the Administrative Agent immediately if it knows that any material Copyright may become injected
into the public domain or of any materially adverse determination or development (including, without limitation, the institution of, or any such determination or development in, any court or tribunal in the United States or any other country)
regarding an Obligor’s ownership of any such Copyright or its validity; (C) take all necessary steps as it shall deem appropriate under the circumstances, to maintain and pursue each application (and to obtain the relevant registration) of
each material Copyright owned by an Obligor and to maintain each registration of each material Copyright owned by an Obligor including, without limitation, filing of applications for renewal where necessary; and (D) promptly notify the
Administrative Agent of any material infringement of any material Copyright of an Obligor of which it becomes aware and take such actions as it shall reasonably deem appropriate under the circumstances to protect such Copyright, including, where
appropriate, the bringing of suit for infringement, seeking injunctive relief and seeking to recover any and all damages for such infringement. 
  

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 (ii) Not make any assignment or agreement in conflict with the security interest in the
Copyrights of each Obligor hereunder (except as permitted by the Credit Agreement). 
 (iii)(A) Continue to use each material
Trademark on each and every trademark class of goods applicable to its current line as reflected in its current catalogs, brochures and price lists in order to maintain such Trademark in full force free from any claim of abandonment for non-use,
(B) maintain as in the past the quality of products and services offered under such Trademark, (C) employ such Trademark with the appropriate notice of registration, if applicable, (D) not adopt or use any mark that is confusingly
similar or a colorable imitation of such Trademark unless the Administrative Agent, for the ratable benefit of the holders of the Secured Obligations, shall obtain a perfected security interest in such mark pursuant to this Agreement, and
(E) not (and not permit any licensee or sublicensee thereof to) do any act or knowingly omit to do any act whereby any such Trademark may become invalidated. 
 (iv) Not do any act, or omit to do any act, whereby any material Patent may become abandoned or dedicated. 
 (v) Notify the Administrative Agent and the holders of the Secured Obligations immediately if it knows that any application or
registration relating to any material Patent or Trademark may become abandoned or dedicated, or of any materially adverse determination or development (including, without limitation, the institution of, or any such determination or development in,
any proceeding in the United States Patent and Trademark Office or any court or tribunal in any country) regarding such Obligor ownership of any Patent or Trademark or its right to register the same or to keep and maintain the same. 
 (vi) Take all reasonable and necessary steps, including, without limitation, in any proceeding before the United States Patent and
Trademark Office, or any similar office or agency in any other country or any political subdivision thereof, to maintain and pursue each application (and to obtain the relevant registration) and to maintain each registration of each material Patent
and Trademark, including, without limitation, filing of applications for renewal, affidavits of use and affidavits of incontestability. 
 (vii) Promptly notify the Administrative Agent and the holders of the Secured Obligations after it learns that any material Patent or Trademark included in the Collateral is infringed, misappropriated or diluted by a
third party and promptly sue for infringement, misappropriation or dilution, to seek injunctive relief where appropriate and to recover any and all damages for such infringement, misappropriation or dilution, or to take such other actions as it
shall reasonably deem appropriate under the circumstances to protect such Patent or Trademark. 
 (viii) Not make any
assignment or agreement in conflict with the security interest in the Patents or Trademarks of each Obligor hereunder (except as permitted by the Credit Agreement). 
 Notwithstanding the foregoing, the Obligors may, in their reasonable business judgment, fail to maintain, pursue, preserve or protect any Copyright, Patent or Trademark which is not material to their businesses.

  

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 5. Authorization to File Financing Statements. Each Obligor hereby authorizes the Administrative
Agent to prepare and file such financing statements (including continuation statements) or amendments thereof or supplements thereto or other instruments as the Administrative Agent may from time to time deem necessary or appropriate in order to
perfect and maintain the security interests granted hereunder in accordance with the UCC (including authorization to describe the Collateral as “all personal property”, “all assets” or words of similar meaning). 
 6. Advances. On failure of any Obligor to perform any of the covenants and agreements contained herein, the Administrative Agent may, at its sole
option and in its sole discretion, perform the same and in so doing may expend such sums as the Administrative Agent may reasonably deem advisable in the performance thereof, including, without limitation, the payment of any insurance premiums
(subject to Section 22), the payment of any taxes, a payment to obtain a release of a Lien or potential Lien, expenditures made in defending against any adverse claim and all other expenditures which the Administrative Agent may make for the
protection of the security hereof or which may be compelled to make by operation of Law. All such sums and amounts so expended shall be repayable by the Obligors on a joint and several basis promptly upon timely notice thereof and demand therefor,
shall constitute additional Secured Obligations and shall, subject to Section 22, bear interest from the date said amounts are expended at the Default Rate. No such performance of any covenant or agreement by the Administrative Agent on behalf
of any Obligor, and no such advance or expenditure therefor, shall relieve the Obligors of any Default or Event of Default. The Administrative Agent may make any payment hereby authorized in accordance with any bill, statement or estimate procured
from the appropriate public office or holder of the claim to be discharged without inquiry into the accuracy of such bill, statement or estimate or into the validity of any tax assessment, sale, forfeiture, tax lien, title or claim except to the
extent such payment is being contested in good faith by an Obligor in appropriate proceedings and against which adequate reserves are being maintained in accordance with GAAP. 
 7. Remedies. 
 (a)
General Remedies. Upon the occurrence of an Event of Default and during continuation thereof, the Administrative Agent shall have, in addition to the rights and remedies provided herein, in the Loan Documents, in any other documents relating
to the Secured Obligations, or by Law (including, but not limited to, levy of attachment, garnishment and the rights and remedies set forth in the UCC of the jurisdiction applicable to the affected Collateral), the rights and remedies of a secured
party under the UCC (regardless of whether the UCC is the law of the jurisdiction where the rights and remedies are asserted and regardless of whether the UCC applies to the affected Collateral), and further, the Administrative Agent may, with or
without judicial process or the aid and assistance of others, (i) enter on any premises on which any of the Collateral may be located and, without resistance or interference by the Obligors, take possession of the Collateral, (ii) dispose
of any Collateral on any such premises, (iii) require the Obligors to assemble and make available to the Administrative Agent at the expense of the Obligors any Collateral at any place and time designated by the Administrative Agent which is
reasonably convenient to both parties, (iv) remove any Collateral from any such premises for the purpose of effecting sale or other disposition thereof, and/or (v) without demand and without advertisement, notice, hearing or process of
law, all of which each of the Obligors hereby waives to the fullest extent permitted by Law, at any place and time or times, sell and deliver any or all Collateral held by or for it at public or private sale (which in the case of a private sale of
Pledged Equity, shall be to a restricted group of purchasers who will be obligated to agree, among other things, to acquire such securities for their own account, for investment and not with a view to the distribution or resale thereof), at any
exchange or broker’s board or elsewhere, by one or more contracts, in one or more parcels, for Money, upon credit or otherwise, at such prices and upon such commercially reasonable terms as the Administrative Agent 

  

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deems advisable, in its sole discretion (subject to any and all mandatory legal requirements). Each Obligor acknowledges that any such private sale may be at
prices and on terms less favorable to the seller than the prices and other terms which might have been obtained at a public sale and, notwithstanding the foregoing, agrees that such fact shall not, in itself, be deemed to detract from the commercial
reasonableness of the sale and, in the case of a sale of Pledged Equity, the Administrative Agent shall have no obligation to delay sale of any such securities for the period of time necessary to permit the issuer of such securities to register such
securities for public sale under the Securities Act of 1933. Neither the Administrative Agent’s compliance with applicable Law nor its disclaimer of warranties relating to the Collateral shall be considered to adversely affect the commercial
reasonableness of any sale. To the extent the rights of notice cannot be legally waived hereunder, each Obligor agrees that any requirement of reasonable notice shall be met if such notice, specifying the place of any public sale or the time after
which any private sale is to be made, is personally served on or mailed, postage prepaid, to the Borrower in accordance with the notice provisions of Section 11.02 of the Credit Agreement at least 10 days before the time of sale or other
event giving rise to the requirement of such notice. The Administrative Agent may adjourn any public or private sale from time to time by announcement at the time and place fixed therefor, and such sale may, without further notice, be made at the
time and place to which it was so adjourned. Each Obligor further acknowledges and agrees that any offer to sell any Pledged Equity which has been (i) publicly advertised on a bona fide basis in a newspaper or other publication of general
circulation in the financial community of New York, New York (to the extent that such offer may be advertised without prior registration under the Securities Act of 1933), or (ii) made privately in the manner described above shall be deemed to
involve a “public sale” under the UCC, notwithstanding that such sale may not constitute a “public offering” under the Securities Act of 1933, and the Administrative Agent may, in such event, bid for the purchase of such
securities. The Administrative Agent shall not be obligated to make any sale or other disposition of the Collateral regardless of notice having been given. To the extent permitted by applicable Law, any holder of Secured Obligations may be a
purchaser at any such sale. To the extent permitted by applicable Law, each of the Obligors hereby waives all of its rights of redemption with respect to any such sale. Subject to the provisions of applicable Law, the Administrative Agent may
postpone or cause the postponement of the sale of all or any portion of the Collateral by announcement at the time and place of such sale, and such sale may, without further notice, to the extent permitted by Law, be made at the time and place to
which the sale was postponed, or the Administrative Agent may further postpone such sale by announcement made at such time and place. 
 (b) Remedies relating to Accounts. During the continuation of an Event of Default, whether or not the Administrative Agent has exercised any or all of its rights and remedies hereunder, (i) each Obligor
will promptly upon request of the Administrative Agent instruct all account debtors to remit all payments in respect of Accounts to a mailing location selected by the Administrative Agent and (ii) the Administrative Agent shall have the right
to enforce any Obligor’s rights against its customers and account debtors, and the Administrative Agent or its designee may notify any Obligor’s customers and account debtors that the Accounts of such Obligor have been assigned to the
Administrative Agent or of the Administrative Agent’s security interest therein, and may (either in its own name or in the name of an Obligor or both) demand, collect (including without limitation by way of a lockbox arrangement), receive, take
receipt for, sell, sue for, compound, settle, compromise and give acquittance for any and all amounts due or to become due on any Account, and, in the Administrative Agent’s discretion, file any claim or take any other action or proceeding to
protect and realize upon the security interest of the holders of the Secured Obligations in the Accounts. Neither the Administrative Agent nor the holders of the Secured Obligations shall have any liability or responsibility to any Obligor for
acceptance of a check, draft or other order for payment of money bearing the legend “payment in full” or words of similar import or any other 

  

 10 

 
restrictive legend or endorsement or be responsible for determining the correctness of any remittance. Furthermore, during the continuation of an Event of
Default, (i) the Administrative Agent shall have the right, but not the obligation, to make test verifications of the Accounts in any manner and through any medium that it reasonably considers advisable, and the Obligors shall furnish all such
assistance and information as the Administrative Agent may require in connection with such test verifications, (ii) upon the Administrative Agent’s request and at the expense of the Obligors, the Obligors shall cause independent public
accountants or others satisfactory to the Administrative Agent to furnish to the Administrative Agent reports showing reconciliations, aging and test verifications of, and trial balances for, the Accounts and (iii) the Administrative Agent in
its own name or in the name of others may communicate with account debtors on the Accounts to verify with them to the Administrative Agent’s satisfaction the existence, amount and terms of any Accounts. 
 (c) Access. In addition to the rights and remedies hereunder, upon the occurrence of an Event of Default and during the continuance
thereof, the Administrative Agent shall have the right to enter and remain upon the various premises of the Obligors without cost or charge to the Administrative Agent, and use the same, together with materials, supplies, books and records of the
Obligors for the purpose of collecting and liquidating the Collateral, or for preparing for sale and conducting the sale of the Collateral, whether by foreclosure, auction or otherwise. In addition, the Administrative Agent may remove Collateral, or
any part thereof, from such premises and/or any records with respect thereto, in order to effectively collect or liquidate such Collateral. 
 (d) Nonexclusive Nature of Remedies. Failure by the Administrative Agent or the holders of the Secured Obligations to exercise any right, remedy or option under this Agreement, any other Loan Document, any
other document relating to the Secured Obligations, or as provided by Law, or any delay by the Administrative Agent or the holders of the Secured Obligations in exercising the same, shall not operate as a waiver of any such right, remedy or option.
No waiver hereunder shall be effective unless it is in writing, signed by the party against whom such waiver is sought to be enforced and then only to the extent specifically stated, which in the case of the Administrative Agent or the holders of
the Secured Obligations shall only be granted as provided herein. To the extent permitted by Law, neither the Administrative Agent, the holders of the Secured Obligations, nor any party acting as attorney for the Administrative Agent or the holders
of the Secured Obligations, shall be liable hereunder for any acts or omissions or for any error of judgment or mistake of fact or law other than their gross negligence or willful misconduct hereunder. The rights and remedies of the Administrative
Agent and the holders of the Secured Obligations under this Agreement shall be cumulative and not exclusive of any other right or remedy which the Administrative Agent or the holders of the Secured Obligations may have. 
 (e) Retention of Collateral. In addition to the rights and remedies hereunder, the Administrative Agent may, in compliance with
Sections 9-620 and 9-621 of the UCC or otherwise complying with the requirements of applicable Law of the relevant jurisdiction, accept or retain the Collateral in satisfaction of the Secured Obligations. Unless and until the Administrative
Agent shall have provided such notices, however, the Administrative Agent shall not be deemed to have retained any Collateral in satisfaction of any Secured Obligations for any reason. 
 (f) Deficiency. In the event that the proceeds of any sale, collection or realization are insufficient to pay all amounts to which
the Administrative Agent or the holders of the Secured Obligations are legally entitled, the Obligors shall be jointly and severally liable for the deficiency, together with interest thereon at the Default Rate, together with the costs of collection
and the fees, charges and disbursements of counsel. Any surplus remaining after the full payment and satisfaction of the Secured Obligations shall be returned to the Obligors or to whomsoever a court of competent jurisdiction shall determine to be
entitled thereto. 
  

 11 

 8. Rights of the Administrative Agent. 
 (a) Power of Attorney. In addition to other powers of attorney contained herein, each Obligor hereby designates and appoints the
Administrative Agent, on behalf of the holders of the Secured Obligations, and each of its designees or agents, as attorney-in-fact of such Obligor, irrevocably and with power of substitution, with authority to take any or all of the following
actions upon the occurrence and during the continuance of an Event of Default: 
 (i) to demand, collect, settle, compromise,
adjust, give discharges and releases, all as the Administrative Agent may reasonably determine; 
 (ii) to commence and
prosecute any actions at any court for the purposes of collecting any Collateral and enforcing any other right in respect thereof; 
 (iii) to defend, settle or compromise any action brought with respect to the Collateral and, in connection therewith, give such discharge or release as the Administrative Agent may deem reasonably appropriate; 
 (iv) receive, open and dispose of mail addressed to an Obligor and endorse checks, notes, drafts, acceptances, money orders, bills of
lading, warehouse receipts or other instruments or documents evidencing payment, shipment or storage of the goods giving rise to the Collateral of such Obligor on behalf of and in the name of such Obligor, or securing, or relating to such
Collateral; 
 (v) sell, assign, transfer, make any agreement in respect of, or otherwise deal with or exercise rights in
respect of, any Collateral or the goods or services which have given rise thereto, as fully and completely as though the Administrative Agent were the absolute owner thereof for all purposes; 
 (vi) adjust and settle claims under any insurance policy relating thereto; 
 (vii) execute and deliver all assignments, conveyances, statements, financing statements, renewal financing statements, security
agreements, affidavits, notices and other agreements, instruments and documents that the Administrative Agent may determine necessary in order to perfect and maintain the security interests and liens granted in this Agreement and in order to fully
consummate all of the transactions contemplated therein; 
 (viii) institute any foreclosure proceedings that the
Administrative Agent may deem appropriate; 
 (ix) to sign and endorse any drafts, assignments, proxies, stock powers,
verifications, notices and other documents relating to the Collateral; 
 (x) to exchange any of the Pledged Equity or other
property upon any merger, consolidation, reorganization, recapitalization or other readjustment of the issuer thereof and, in connection therewith, deposit any of the Pledged Equity with any committee, depository, transfer agent, registrar or other
designated agency upon such terms as the Administrative Agent may reasonably deem appropriate; 
  

 12 

 (xi) to vote for a shareholder resolution, or to sign an instrument in writing,
sanctioning the transfer of any or all of the Pledged Equity into the name of the Administrative Agent or one or more of the holders of the Secured Obligations or into the name of any transferee to whom the Pledged Equity or any part thereof may be
sold pursuant to Section 7 hereof; 
 (xii) to pay or discharge taxes, liens, security interests or other encumbrances
levied or placed on or threatened against the Collateral; 
 (xiii) to direct any parties liable for any payment in connection
with any of the Collateral to make payment of any and all monies due and to become due thereunder directly to the Administrative Agent or as the Administrative Agent shall direct; 
 (xiv) to receive payment of and receipt for any and all monies, claims, and other amounts due and to become due at any time in respect of
or arising out of any Collateral; and 
 (xv) do and perform all such other acts and things as the Administrative Agent may
reasonably deem to be necessary, proper or convenient in connection with the Collateral. 
 This power of attorney is a power coupled with an interest and
shall be irrevocable until such time as the Secured Obligations arising under the Loan Documents have been paid in full and the Commitments have expired or been terminated. The Administrative Agent shall be under no duty to exercise or withhold the
exercise of any of the rights, powers, privileges and options expressly or implicitly granted to the Administrative Agent in this Agreement, and shall not be liable for any failure to do so or any delay in doing so. The Administrative Agent shall
not be liable for any act or omission or for any error of judgment or any mistake of fact or law in its individual capacity or its capacity as attorney-in-fact except acts or omissions resulting from its gross negligence or willful misconduct. This
power of attorney is conferred on the Administrative Agent solely to protect, preserve and realize upon its security interest in the Collateral. 
 (b) Assignment by the Administrative Agent. The Administrative Agent may from time to time assign the Secured Obligations to a successor Administrative Agent appointed in accordance with the Credit Agreement,
and such successor shall be entitled to all of the rights and remedies of the Administrative Agent under this Agreement in relation thereto. 
 (c) The Administrative Agent’s Duty of Care. Other than the exercise of reasonable care to assure the safe custody of the Collateral while being held by the Administrative Agent hereunder, the
Administrative Agent shall have no duty or liability to preserve rights pertaining thereto, it being understood and agreed that the Obligors shall be responsible for preservation of all rights in the Collateral, and the Administrative Agent shall be
relieved of all responsibility for the Collateral upon surrendering it or tendering the surrender of it to the Obligors. The Administrative Agent shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in
its possession if the Collateral is accorded treatment substantially equal to that which the Administrative Agent accords its own property, which shall be no less than the treatment employed by a reasonable and prudent agent in the industry, it
being understood that the Administrative Agent shall not have responsibility for taking any necessary steps to preserve rights against any parties with respect to any of the Collateral. In the event of a public or private sale of Collateral pursuant
to Section 7 hereof, the Administrative Agent shall have no responsibility for (i) ascertaining or taking action with respect to calls, conversions, exchanges, maturities, tenders or other matters relating to any Collateral, whether or not
the Administrative Agent has or is deemed to have knowledge of such matters, or (ii) taking any steps clean, repair or otherwise prepare the Collateral for sale. 
  

 13 

 (d) Liability with Respect to Accounts. Anything herein to the contrary
notwithstanding, each of the Obligors shall remain liable under each of the Accounts to observe and perform all the conditions and obligations to be observed and performed by it thereunder, all in accordance with the terms of any agreement giving
rise to each such Account. Neither the Administrative Agent nor any holder of Secured Obligations shall have any obligation or liability under any Account (or any agreement giving rise thereto) by reason of or arising out of this Agreement or the
receipt by the Administrative Agent or any holder of Secured Obligations of any payment relating to such Account pursuant hereto (other than accounting to the Borrower for proceeds applied under Section 9), nor shall the Administrative Agent or
any holder of Secured Obligations be obligated in any manner to perform any of the obligations of an Obligor under or pursuant to any Account (or any agreement giving rise thereto), to make any payment, to make any inquiry as to the nature or the
sufficiency of any payment received by it or as to the sufficiency of any performance by any party under any Account (or any agreement giving rise thereto), 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 it or to which it may be entitled at any time or times. 
 (e)
Voting and Payment Rights in Respect of the Pledged Equity. 
 (i) So long as no Event of Default shall exist, each
Obligor may (A) exercise any and all voting and other consensual rights pertaining to the Pledged Equity of such Obligor or any part thereof for any purpose not inconsistent with the terms of this Agreement or the Credit Agreement and
(B) receive and retain any and all dividends (other than stock dividends and other dividends constituting Collateral which are addressed hereinabove), principal or interest paid in respect of the Pledged Equity to the extent they are allowed
under the Credit Agreement; and 
 (ii) During the continuance of an Event of Default and upon written notice to the Borrower,
(A) all rights of an Obligor to exercise the voting and other consensual rights which it would otherwise be entitled to exercise pursuant to clause (i)(A) above shall cease and all such rights shall thereupon become vested in the Administrative
Agent which shall then have the sole right to exercise such voting and other consensual rights, (B) all rights of an Obligor to receive the dividends, principal and interest payments which it would otherwise be authorized to receive and retain
pursuant to clause (i)(B) above shall cease and all such rights shall thereupon be vested in the Administrative Agent which shall then have the sole right to receive and hold as Collateral such dividends, principal and interest payments, and
(C) all dividends, principal and interest payments which are received by an Obligor contrary to the provisions of clause (ii)(B) above shall be received in trust for the benefit of the Administrative Agent, shall be segregated from other
property or funds of such Obligor, and shall be forthwith paid over to the Administrative Agent as Collateral in the exact form received, to be held by the Administrative Agent as Collateral and as further collateral security for the Secured
Obligations. 
 (f) Releases of Collateral. (i) If any Collateral shall be sold, transferred or otherwise disposed
of by any Obligor in a transaction permitted by the Credit Agreement, then the Administrative Agent, at the request and sole expense of such Obligor, shall promptly execute and deliver to such Obligor all releases and other documents, and take such
other action, reasonably necessary for the release of the Liens created hereby or by any other Collateral Document on such 

  

 14 

 
Collateral. (ii) The Administrative Agent may release any of the Pledged Equity from this Agreement or may substitute any of the Pledged Equity for
other Pledged Equity without altering, varying or diminishing in any way the force, effect, lien, pledge or security interest of this Agreement as to any Pledged Equity not expressly released or substituted, and this Agreement shall continue as a
first priority lien on all Pledged Equity not expressly released or substituted. 
 9. Application of Proceeds. Upon the acceleration
of the Obligations pursuant to Section 9.02 of the Credit Agreement, any payments in respect of the Secured Obligations and any proceeds of the Collateral, when received by the Administrative Agent or any holder of the Secured
Obligations in Money, will be applied in reduction of the Secured Obligations in the order set forth in Section 9.03 of the Credit Agreement. 
 10. Continuing Agreement. 
 (a) This Agreement shall remain in full force and effect
until such time as the Secured Obligations arising under the Loan Documents have been paid in full and the Commitments have expired or been terminated, at which time this Agreement shall be automatically terminated and the Administrative Agent
shall, upon the request and at the expense of the Obligors, forthwith release all of its liens and security interests hereunder and shall execute and deliver all UCC termination statements and/or other documents reasonably requested by the Obligors
evidencing such termination. 
 (b) This Agreement shall continue to be effective or be automatically reinstated, as the case
may be, if at any time payment, in whole or in part, of any of the Secured Obligations is rescinded or must otherwise be restored or returned by the Administrative Agent or any holder of the Secured Obligations as a preference, fraudulent conveyance
or otherwise under any Debtor Relief Law, all as though such payment had not been made; provided that in the event payment of all or any part of the Secured Obligations is rescinded or must be restored or returned, all reasonable costs and expenses
(including without limitation any reasonable legal fees and disbursements) incurred by the Administrative Agent or any holder of the Secured Obligations in defending and enforcing such reinstatement shall be deemed to be included as a part of the
Secured Obligations. 
 11. Amendments; Waivers; Modifications, etc. This Agreement and the provisions hereof may not be amended,
waived, modified, changed, discharged or terminated except as set forth in Section 11.01 of the Credit Agreement; provided that any update or revision to Schedule 2(c) hereof delivered by any Obligor shall not constitute an
amendment for purposes of this Section 11 or Section 11.01 of the Credit Agreement. 
 12. Successors in Interest.
This Agreement shall be binding upon each Obligor, its successors and assigns and shall inure, together with the rights and remedies of the Administrative Agent and the holders of the Secured Obligations hereunder, to the benefit of the
Administrative Agent and the holders of the Secured Obligations and their successors and permitted assigns. 
 13. Notices. All
notices required or permitted to be given under this Agreement shall be in conformance with Section 11.02 of the Credit Agreement. 
 14. Counterparts. This Agreement may be executed in any number of counterparts, each of which where so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. It shall not be
necessary in making proof of this Agreement to produce or account for more than one such counterpart. 
  

 15 

 15. Headings. The headings of the sections hereof are provided for convenience only and shall not
in any way affect the meaning or construction of any provision of this Agreement. 
 16. Governing Law; Submission to Jurisdiction; Venue;
WAIVER OF JURY TRIAL. The terms of Sections 11.14 and 11.15 of the Credit Agreement with respect to governing law, submission to jurisdiction, venue and waiver of jury trial are incorporated herein by reference, mutatis
mutandis, and the parties hereto agree to such terms. 
 17. Severability. If any provision of any of the Agreement is determined
to be illegal, invalid or unenforceable, such provision shall be fully severable and the remaining provisions shall remain in full force and effect and shall be construed without giving effect to the illegal, invalid or unenforceable provisions.

 18. Entirety. This Agreement, the other Loan Documents and the other documents relating to the Secured Obligations represent the
entire agreement of the parties hereto and thereto, and supersede all prior agreements and understandings, oral or written, if any, including any commitment letters or correspondence relating to the Loan Documents, any other documents relating to
the Secured Obligations, or the transactions contemplated herein and therein. 
 19. Other Security. To the extent that any of the
Secured Obligations are now or hereafter secured by property other than the Collateral (including, without limitation, real property and securities owned by an Obligor), or by a guarantee, endorsement or property of any other Person, then the
Administrative Agent shall have the right to proceed against such other property, guarantee or endorsement upon the occurrence of any Event of Default, and the Administrative Agent shall have the right, in its sole discretion, to determine which
rights, security, liens, security interests or remedies the Administrative Agent shall at any time pursue, relinquish, subordinate, modify or take with respect thereto, without in any way modifying or affecting any of them or the Secured Obligations
or any of the rights of the Administrative Agent or the holders of the Secured Obligations under this Agreement, under any other of the Loan Documents or under any other document relating to the Secured Obligations. 
 20. Joinder. At any time after the date of this Agreement, one or more additional Persons may become party hereto by executing and delivering to
the Administrative Agent a Joinder Agreement. Immediately upon such execution and delivery of such Joinder Agreement (and without any further action), each such additional Person will become a party to this Agreement as an “Obligor” and
have all of the rights and obligations of an Obligor hereunder and this Agreement and the schedules hereto shall be deemed amended by such Joinder Agreement. 
 21. Rights of Required Lenders. All rights of the Administrative Agent hereunder, if not exercised by the Administrative Agent, may be exercised by the Required Lenders. 
 22. Warning Regarding Insurance. 
 WARNING 
 UNLESS THE OBLIGORS PROVIDE THE ADMINISTRATIVE AGENT WITH EVIDENCE OF THE INSURANCE COVERAGE AS REQUIRED BY THE CREDIT AGREEMENT OR THE
OTHER LOAN DOCUMENTS, THE ADMINISTRATIVE AGENT MAY PURCHASE INSURANCE AT THE OBLIGORS’ EXPENSE TO PROTECT THE INTERESTS OF THE ADMINISTRATIVE AGENT AND THE HOLDERS OF THE SECURED OBLIGATIONS (“SECURED PARTIES”). THIS INSURANCE
MAY, BUT NEED NOT, ALSO PROTECT THE OBLIGORS’ INTERESTS. IF THE COLLATERAL BECOMES DAMAGED, THE 

  

 16 

 
COVERAGE THE ADMINISTRATIVE AGENT PURCHASES MAY NOT PAY ANY CLAIM OBLIGORS MAKE OR ANY CLAIM MADE AGAINST ANY OBLIGORS. THE OBLIGORS MAY LATER CANCEL THIS
COVERAGE BY PROVIDING EVIDENCE THAT THEY HAVE OBTAINED PROPERTY COVERAGE ELSEWHERE. 
 THE OBLIGORS ARE RESPONSIBLE FOR THE COST OF ANY
INSURANCE PURCHASED BY THE ADMINISTRATIVE AGENT. THE COST OF THIS INSURANCE MAY BE ADDED TO THE OBLIGORS’ CONTRACT OR LOAN BALANCES. IF THE COST IS ADDED TO THEIR CONTRACT OR LOAN BALANCES, THE INTEREST RATE ON THE UNDERLYING CONTRACT OR LOANS
WILL APPLY TO THIS ADDED AMOUNT. THE EFFECTIVE DATE OF COVERAGE MAY BE THE DATE THE OBLIGORS’ PRIOR COVERAGE LAPSED OR THE DATE THEY FAILED TO PROVIDE PROOF OF COVERAGE. 
 THE COVERAGE THE ADMINISTRATIVE AGENT PURCHASES MAY BE CONSIDERABLY MORE EXPENSIVE THAN INSURANCE THE OBLIGORS CAN OBTAIN ON THEIR OWN AND MAY NOT
SATISFY ANY NEED FOR PROPERTY DAMAGE COVERAGE OR ANY MANDATORY LIABILITY INSURANCE REQUIREMENTS IMPOSED BY WASHINGTON OR OTHER APPLICABLE LAW. 
 [remainder of page intentionally left blank] 
  

 17 

 Each of the parties hereto has caused a counterpart of this Agreement to be duly executed and delivered
as of the date first above written. 
  

									
	OBLIGORS:	 		 	NAUTILUS, INC.,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	 
		 		 		 	Title:	 	 

  

									
			
		 		 	DASHAMERICA, INC.
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	 
		 		 		 	Title:	 	 

 Accepted and agreed to as of the date first above written. 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
		 	
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 18 

 SCHEDULE 1(b) 
 PLEDGED EQUITY 
  

								
	 OBLIGOR: Nautilus, Inc.
	  		  		
	 Name of Subsidiary
	  	Number of Shares	  	Certificate
Number	  	Percentage
Ownership	 
	 DashAmerica, Inc.
	  	TBD	  	TBD	  	100	%
	 Nautilus Fitness Australia Pty Ltd.
	  	TBD	  	TBD	  	65	%
	 Nautilus (Shanghai) Fitness Co., Ltd.
	  	TBD	  	TBD	  	65	%
	 Nautilus Fitness International Holdings S.A.
	  	TBD	  	TBD	  	65	%
	 Nautilus Fitness Canada, Inc.
	  	TBD	  	TBD	  	65	%
	 DFI Leaseco, LLC
	  	N/A	  	N/A	  	100	%
				
	 OBLIGOR: DashAmerica, Inc.
	  		  		  		
				
	 Name of Subsidiary
	  	Number of Shares	  	Certificate
Number	  	Percentage
Ownership	 
	 Pearl Izumi GmbH
	  	TBD	  	TBD	  	65	%
	 Pearl Izumi Europe BV
	  	TBD	  	TBD	  	65	%

  

 19 

 SCHEDULE 2(c) 
 COMMERCIAL TORT CLAIMS 
 None. 
  

 20 

 SCHEDULE 3(g) 
 INSTRUMENTS, DOCUMENTS, TANGIBLE CHATTEL PAPER 
 Promissory note made by Champion Nutrition in favor of Nautilus, Inc. in
the approximate amount of $2,500,000 due on November 24, 2007 
  

 21 

 IRREVOCABLE STOCK POWER 
 FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers to 
 the following Equity Interests of
                    , a
                    corporation: 
  

			
	No. of Shares	  	Certificate No.
		  	

 and irrevocably appoints
                    its agent and attorney-in-fact to transfer all or any part of such Equity Interests and to take all necessary and
appropriate action to effect any such transfer. The agent and attorney-in-fact may substitute and appoint one or more persons to act for him. The effectiveness of a transfer pursuant to this stock power shall be subject to any and all transfer
restrictions referenced on the face of the certificates evidencing such interest or in the certificate of incorporation or bylaws of the subject corporation, to the extent they may from time to time exist. 
  

			
	 
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 22 

 EXHIBIT 4(b)(i) 
 NOTICE 
 OF 
 GRANT OF SECURITY INTEREST 
 IN 
 COPYRIGHTS 
 United States Copyright Office 
 Ladies and Gentlemen: 
 Please be advised that pursuant to the Security and Pledge Agreement dated as of
                , 20    (as the same may be amended, modified, extended or restated from time to time, the
“Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as administrative agent (the “Administrative
Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the copyrights and copyright applications shown below to the
Administrative Agent for the ratable benefit of the holders of the Secured Obligations: 
 COPYRIGHTS 
  

					
	Copyright No.	  	Description of Copyright	  	Date of Copyright
		  		  	

 COPYRIGHT APPLICATIONS 
  

					
	Copyright Applications No.	  	Description of Copyright Applied For	  	Date of Copyright Applications
		  		  	

  

 23 

 The Obligors and the Administrative Agent, on behalf of the holders of the Secured Obligations, hereby
acknowledge and agree that the security interest in the foregoing copyrights and copyright applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as an assignment of any
copyright or copyright application. 
  

			
	Very truly yours,
	
	 
	[Obligor]
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Acknowledged and Accepted: 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 24 

 EXHIBIT 4(b)(ii) 
 NOTICE 
 OF 
 GRANT OF SECURITY INTEREST 
 IN 
 PATENTS 
 United States Patent and Trademark Office 
 Ladies and Gentlemen: 
 Please be advised that pursuant to the Security and Pledge Agreement dated as of
                , 20    (as the same may be amended, modified, extended or restated from time to time, the
“Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as administrative agent (the “Administrative
Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the patents and patent applications shown below to the Administrative
Agent for the ratable benefit of the holders of the Secured Obligations: 
 PATENTS 
  

					
	Patent No.	  	Description of Patent Item	  	Date of
Patent
		  		  	

 PATENT APPLICATIONS 
  

					
	Patent Applications No.	  	Description of Patent
Applied For	  	Date of Patent Applications
		  		  	

  

 25 

 The Obligors and the Administrative Agent, on behalf of the holders of the Secured Obligations, hereby
acknowledge and agree that the security interest in the foregoing patents and patent applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as an assignment of any patent or
patent application. 
  

			
	Very truly yours,
	
	 
	[Obligor]
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Acknowledged and Accepted: 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 26 

 EXHIBIT 4(b)(iii) 
 NOTICE 
 OF 
 GRANT OF SECURITY INTEREST 
 IN 
 TRADEMARKS 
 United States Patent and Trademark Office 
 Ladies and Gentlemen: 
 Please be advised that pursuant to
the Security and Pledge Agreement dated as of                 , 20    (as the same may be amended, modified, extended or restated from
time to time, the “Agreement”) by and among the Obligors party thereto (each an “Obligor” and collectively, the “Obligors”) and Bank of America, N.A., as Administrative Agent (the
“Administrative Agent”) for the holders of the Secured Obligations referenced therein, the undersigned Obligor has granted a continuing security interest in and continuing lien upon the trademarks and trademark applications shown
below to the Administrative Agent for the ratable benefit of the holders of the Secured Obligations: 
 TRADEMARKS 
  

					
	Trademark No.	  	Description of Trademark Item	  	Date of Trademark
		  		  	

 TRADEMARK APPLICATIONS 
  

					
	Trademark Applications No.	  	Description of Trademark Applied For	  	Date of Trademark Applications
		  		  	

  

 27 

 The Obligors and the Administrative Agent, on behalf of the holders of the Secured Obligations, hereby
acknowledge and agree that the security interest in the foregoing trademarks and trademark applications (i) may only be terminated in accordance with the terms of the Agreement and (ii) is not to be construed as an assignment of any
trademark or trademark application. 
  

			
	Very truly yours,
	
	 
	[Obligor]
		
	By:	 	 
	Name:	 	 
	Title:	 	 

 Acknowledged and Accepted: 
  

			
	BANK OF AMERICA, N.A., as Administrative Agent
		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

 28First Amendment and Waiver to Credit Agreement

 Exhibit 10.2 
 FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT 
 THIS FIRST AMENDMENT AND WAIVER TO CREDIT AGREEMENT
dated as of October 12, 2007 (this “Agreement”), is entered into among NAUTILUS, INC. (the “Borrower”), the Guarantors party to the Credit Agreement (as defined below), the Lenders party to the Credit Agreement
and BANK OF AMERICA, N.A., as Administrative Agent (in such capacity, the “Administrative Agent”). Capitalized terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement. 

RECITALS 
 A. The Borrower, the
Guarantors, the Lenders and the Administrative Agent entered into that certain Credit Agreement, dated as of February 14, 2007 (the “Credit Agreement”). 
 B. The Borrower has informed the Lenders that it will not be able to comply with Sections 8.11(a) and 8.11(b) of the Credit Agreement with respect
to the four fiscal quarter period ended September 30, 2007 (the “Acknowledged Defaults”); 
 C. The Borrower is
requesting that the Lenders (i) waive the Acknowledged Defaults and (ii) modify certain other provisions of the Credit Agreement; and 
 D. The Lenders have agreed to (i) waive the Acknowledged Defaults and (ii) amend certain terms of the Credit Agreement, in each case, on the terms, and subject to the conditions, set forth below. 
 E. In consideration of the agreements hereinafter set forth, and for other good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties hereto agree as follows: 
 AGREEMENT 
 1. Amendments. 
 (a)
Existing Definitions. The following definitions in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 
 “Applicable Rate” means the following percentages per annum: (a) with respect to Eurodollar Rate Loans and Letter of Credit Fees, 2.00%, (b) with respect to Base Rate Loans (other than Swing
Line Loans), 0.50%, (c) with respect to Swing Line Loans, -0.50% and (d) with respect to the commitment fee payable pursuant to Section 2.09(a), 0.425%. 
 “Loan Documents” means this Agreement, each Note, each Issuer Document, each Joinder Agreement, the Collateral Documents
and the Fee Letter. 
 (b) Pro Forma Basis. The parenthetical “(including for purposes of determining the
Applicable Rate)” is hereby deleted from the definition of “Pro Forma Basis” in Section 1.01 of the Credit Agreement. 
 (c) New Definitions. The following definitions are added to Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows: 
  

 1 

 “Collateral” means a collective reference to all real and personal
property with respect to which Liens in favor of the Administrative Agent, for the benefit of itself and the Lenders, are purported to be granted pursuant to and in accordance with the terms of the Collateral Documents. 
 “Collateral Documents” means a collective reference to the Security Agreement, the Mortgages and other security documents
as may be executed and delivered by the Loan Parties pursuant to the terms of Section 7.14. 
 “Debt
Issuance” means the issuance by any Loan Party or any Subsidiary of any Indebtedness other than Indebtedness permitted under Section 8.03 (other than Section 8.03(f)). 
 “Equity Issuance” means any issuance by any Loan Party or any Subsidiary to any Person of its Equity Interests, other
than (a) any issuance of its Equity Interests pursuant to the exercise of options or warrants, (b) any issuance of its Equity Interests pursuant to the conversion of any debt securities to equity or the conversion of any class equity
securities to any other class of equity securities, (c) any issuance of options or warrants relating to its Equity Interests, and (d) any issuance by the Borrower of its Equity Interests as consideration for a Permitted Acquisition. The
term “Equity Issuance” shall not be deemed to include any Disposition. 
 “Excluded Property”
means, with respect to any Loan Party, (a) unless requested by the Administrative Agent or the Required Lenders, any owned real property which is located outside of the United States, (b) unless requested by the Administrative Agent or the
Required Lenders, any leasehold interests in real property, (c) unless requested by the Administrative Agent or the Required Lenders, any IP Rights for which a perfected Lien thereon is not effected either by filing of a Uniform Commercial Code
financing statement or by appropriate evidence of such Lien being filed in either the United States Copyright Office or the United States Patent and Trademark Office, (d) unless requested by the Administrative Agent or the Required Lenders, any
personal property (other than personal property described in clause (c) above) for which the attachment or perfection of a Lien thereon is not governed by the Uniform Commercial Code, (e) the Equity Interests of any direct Foreign
Subsidiary of a Loan Party to the extent not required to be pledged to secure the Obligations pursuant to Section 7.14(a) and (f) any property which, subject to the terms of Section 8.09, is subject to a Lien of the type
described in Section 8.01(i) pursuant to documents which prohibit such Loan Party from granting any other Liens in such property. 
 “First Amendment Effective Date” means October 12, 2007. 
 “Interim Availability Amount” means the lesser of (a) $75,000,000 and (b) the Aggregate Revolving Commitments; provided that if Consolidated EBITDA is at least $32,500,000 for each of the two most recently
ended four fiscal quarter periods, then the “Interim Availability Amount” shall mean the Aggregate Revolving Commitments. 
 “Mortgaged Property” means, with respect to any Loan Party, any owned real property or any leasehold interest in real property that, in either case, is subject to a Mortgage. 
  

 2 

 “Mortgages” means the mortgages, deeds of trust, assignments of leases
for security or deeds to secure debt that purport to grant to the Administrative Agent a security interest in the fee interests and/or leasehold interests of any Loan Party in any real property. 
 “Net Cash Proceeds” means the aggregate cash or Cash Equivalents proceeds received by any Loan Party or any Subsidiary in
respect of any Disposition, Equity Issuance, Debt Issuance or Involuntary Disposition, net of (a) direct costs incurred in connection therewith (including, without limitation, legal, accounting and investment banking fees, and sales
commissions), (b) taxes paid or payable as a result thereof and (c) in the case of any Disposition or any Involuntary Disposition, the amount necessary to retire any Indebtedness secured by a Permitted Lien (ranking senior to any Lien of
the Administrative Agent) on the related property; it being understood that “Net Cash Proceeds” shall include, without limitation, any cash or Cash Equivalents received upon the sale or other disposition of any non-cash consideration
received by any Loan Party or any Subsidiary in any Disposition, Equity Issuance, Debt Issuance or Involuntary Disposition. 
 “Security Agreement” means the security and pledge agreement dated as of October 5, 2007 executed in favor of the Administrative Agent by each of the Loan Parties. 
 (d) Section 1.03. The parenthetical “(including for purposes of determining the Applicable Rate)” is hereby deleted
from Section 1.03(c) of the Credit Agreement. 
 (e) Section 2.01(a). The following sentence is added to the
end of Section 2.01(a) of the Credit Agreement: 
 Notwithstanding anything to the contrary herein, commencing on January 1, 2008
and until such time as the Required Lenders agree otherwise, the Total Revolving Outstandings shall not exceed the Interim Availability Amount. 
 (f) Section 2.03(a)(i). The following sentence is added to the end of Section 2.03(a)(i) of the Credit Agreement: 
 Notwithstanding anything to the contrary herein, commencing on January 1, 2008 and until such time as the Required Lenders agree otherwise, the Total Revolving Outstandings shall not exceed the Interim
Availability Amount. 
 (g) Section 2.04(a). The following sentence is added to the end of Section 2.04(a) of
the Credit Agreement: 
 Notwithstanding anything to the contrary herein, commencing on January 1, 2008 and until such time as the
Required Lenders agree otherwise, the Total Revolving Outstandings shall not exceed the Interim Availability Amount. 
  

 3 

 (h) Section 2.05. (i) Section 2.05(b) of the Credit Agreement is
amended and restated in its entirety and (ii) a new Section 2.05(c) is added to the Credit Agreement, each to read as follows: 
 (b) Mandatory Prepayments of Loans. 
 (i) Revolving Commitments. If for any
reason the Total Revolving Outstandings at any time exceed the Aggregate Revolving Commitments then in effect, the Borrower shall immediately prepay Revolving Loans and/or the Swing Line Loans and/or Cash Collateralize the L/C Obligations in an
aggregate amount equal to such excess; provided, however, that the Borrower shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(b) unless after the prepayment in full of the
Revolving Loans and Swing Line Loans the Total Revolving Outstandings exceed the Aggregate Revolving Commitments then in effect. 
 (ii) Dispositions and Involuntary Dispositions. The Borrower shall prepay the Loans and/or Cash Collateralize the L/C Obligations as hereafter provided in an aggregate amount equal to 100% of the Net Cash Proceeds of all
(A) Dispositions (other than Permitted Transfers) in excess of $1,000,000 in the aggregate after the First Amendment Effective Date and (B) Involuntary Dispositions. 
 (iii) Debt Issuances. Immediately upon receipt by any Loan Party or any Subsidiary of the Net Cash Proceeds of any Debt Issuance,
the Borrower shall prepay the Loans and/or Cash Collateralize the L/C Obligations as hereafter provided in an aggregate amount equal to 100% of such Net Cash Proceeds in excess of $1,000,000 in the aggregate after the First Amendment Effective Date.

 (iv) Equity Issuances. Immediately upon the receipt by any Loan Party or any Subsidiary of the Net Cash Proceeds of
any Equity Issuance, the Borrower shall prepay the Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to 100% of such Net Cash Proceeds. 
 (v) Application of Mandatory Prepayments. All amounts required to be paid pursuant to this Section 2.05(b) shall be
applied first ratably to the L/C Borrowings and the Swing Line Loans, second, to the outstanding Revolving Loans, and, third, to Cash Collateralize the remaining L/C Obligations. Within the parameters of the applications set
forth above, prepayments shall be applied first to Base Rate Loans and then to Eurodollar Rate Loans in direct order of Interest Period maturities. All prepayments under this Section 2.05(b) shall be subject to Section 3.05,
but otherwise without premium or penalty, and shall be accompanied by interest on the principal amount prepaid through the date of prepayment. 
 (c) Interim Availability Amount. Commencing on January 1, 2008 and until such time as the Required Lenders agree otherwise, if for any reason the Total Revolving Outstandings exceed the Interim
Availability Amount, the Borrower shall immediately prepay Revolving Loans and/or the Swing Line Loans and/or Cash Collateralize the L/C Obligations in an aggregate amount equal to such excess; provided, however, that the Borrower
shall not be required to Cash Collateralize the L/C Obligations pursuant to this Section 2.05(c) unless after the prepayment in full of the Revolving Loans and Swing Line Loans the Total Revolving Outstandings exceed the Interim
Availability Amount. 
  

 4 

 (i) Section 2.06. Section 2.06 of the Credit Agreement is amended and restated in its
entirety to read as follows: 
 (a) Optional Reductions. The Borrower may, upon notice to the Administrative Agent,
terminate the Aggregate Revolving Commitments, or from time to time permanently reduce the Aggregate Revolving Commitments to an amount not less than the Outstanding Amount of Revolving Loans, Swing Line Loans and L/C Obligations; provided
that (i) any such notice shall be received by the Administrative Agent not later than 12:00 noon five (5) Business Days prior to the date of termination or reduction, (ii) any such partial reduction shall be in an aggregate amount of
$5,000,000 or any whole multiple of $1,000,000 in excess thereof and (iii) if, after giving effect to any reduction of the Aggregate Revolving Commitments, the Letter of Credit Sublimit or the Swing Line Sublimit exceeds the amount of the
Aggregate Revolving Commitments, such sublimit shall be automatically reduced by the amount of such excess. The Administrative Agent will promptly notify the Lenders of any such notice of termination or reduction of the Aggregate Revolving
Commitments. Any reduction of the Aggregate Revolving Commitments shall be applied to the Revolving Commitment of each Lender according to its Applicable Percentage. All fees accrued with respect thereto until the effective date of any termination
of the Aggregate Revolving Commitments shall be paid on the effective date of such termination. 
 (b) Mandatory
Reductions. Within three Business Days after any Loan Party or Subsidiary receives Net Cash Proceeds, the Aggregate Revolving Commitments shall be permanently reduced in an amount equal to (i) with respect to Sections 2.05(b)(ii), 80%,
(ii) with respect to Section 2.05(b)(iii), 100% and (iii) with respect to 2.05(b)(iv), 50%, of the amount of Net Cash Proceeds that is available to be applied to the prepayment of Revolving Loans, Swing Line Loans and L/C Obligations
pursuant to Section 2.05(b)(ii), (iii), and (iv), irrespective of the Total Revolving Outstandings at such time. 
 (j) Section 4.05. The following sentence is added to the end of Section 4.05 of the Credit Agreement: 
 The Guarantors acknowledge and agree that their obligations hereunder are secured in accordance with the terms of the Collateral Documents and that the Lenders may exercise their remedies thereunder in accordance with the terms thereof.

 (k) Section 6.02. Subclause (b)(i) of Section 6.02 of the Credit Agreement is amended by inserting the word
“material” immediately prior to the word “Contractual”. 
 (l) Section 6.03. Section 6.03 of the Credit
Agreement is amended and restated in its entirety to read all follows: 
 No approval, consent, exemption, authorization, or
other action by, or notice to, or filing with, any Governmental Authority or any other Person is necessary or required in connection with the execution, delivery or performance by, or enforcement against, any Loan Party of this Agreement or any
other Loan Document other than (i) those that have already been obtained and are in full force and effect and (ii) filings to perfect the Liens created by the Collateral Documents. 
 (m) Section 6.13. Section 6.13 of the Credit Agreement is amended by deleting “(i)” from such Section. 
  

 5 

 (n) Section 6.17. Section 6.17 of the Credit Agreement is amended and restated in its
entirety to read all follows: 
 Except for the effect of matters disclosed in Schedule 6.06 (none of which could reasonably
be expected to have a Material Adverse Effect), the Borrower and its Subsidiaries own, or possess the legal right to use, all of the trademarks, service marks, trade names, copyrights, patents, patent rights, franchises, licenses and other
intellectual property rights (collectively, “IP Rights”) that are reasonably necessary for the operation of their respective businesses. Set forth on Schedule 6.17 is a list of all IP Rights registered or pending registration
with the United States Copyright Office or the United States Patent and Trademark Office and owned by each Loan Party as of the date of delivery of such Schedule to the Administrative Agent. Except for such claims and infringements that could
not reasonably be expected to have a Material Adverse Effect: (a) no claim has been asserted and is pending by any Person challenging or questioning the use of any IP Rights or the validity or effectiveness of any IP Rights, nor does any Loan
Party know of any such claim, and (b) to the knowledge of the Responsible Officers of the Loan Parties, the use of any IP Rights by the Borrower or any Subsidiary or the granting of a right or a license in respect of any IP Rights from the
Borrower or any Subsidiary does not infringe on the rights of any Person. As of the date of delivery of such Schedule to the Administrative Agent, none of the IP Rights owned by any of the Loan Parties is subject to any licensing agreement or
similar arrangement except as set forth on Schedule 6.17. The parties hereto acknowledge that Schedule 6.17 as delivered on the First Amendment Effective Date is in draft form and that the Loan Parties shall deliver a final Schedule
6.17 to the Administrative Agent on or before November 10, 2007 (such final Schedule shall replace and supersede such prior draft). 
 (o) Section 6.19. Section 6.19 of the Credit Agreement is amended and restated in its entirety to read as follows: 
 6.19 Business Locations; Taxpayer Identification Number. 
 Set forth on Schedule
6.19(a) is a list of all real property located in the United States that is owned or leased by the Loan Parties as of the First Amendment Effective Date. Set forth on Schedule 6.19(b) is the chief executive office, U.S. tax payer
identification number, organizational identification number and exact legal name and state of organization of each Loan Party as of the First Amendment Effective Date. Except as set forth on Schedule 6.19(c), no Loan Party has during the five
years preceding the First Amendment Effective Date (i) changed its legal name, (ii) changed its state of formation, or (iii) been party to a merger, consolidation or other change in structure. 
 (p) Section 7.02(d). Section 7.02(d) of the Credit Agreement is amended and restated in its entirety to read all follows: 
 (d) concurrently with the delivery of the financial statements referred to in Sections 7.01(a) and (b), a report signed
by a Responsible Officer of the Borrower that supplements Schedules 6.13, 6.17 and 6.19(a), 6.19(b) and 6.19(c), such that, as supplemented, such Schedules would be to be accurate and complete as of such date;

  

 6 

 (q) Section 7.07. Section 7.07 of the Credit Agreement is amended and restated in its
entirety to read as follows: 
 (a) Maintain in full force and effect insurance (including worker’s compensation
insurance, liability insurance, casualty insurance and business interruption insurance) with financially sound and reputable insurance companies not Affiliates of the Borrower, in such amounts, with such deductibles and covering such risks as are
customarily carried by companies engaged in similar businesses and owning similar properties in localities where the Borrower or the applicable Subsidiary operates. 
 (b) On or before the date that is thirty days after the First Amendment Effective Date and at all times thereafter, cause the
Administrative Agent to be named as loss payee or mortgagee, as its interest may appear, and/or additional insured with respect to any such insurance providing liability coverage (except workers’ compensation insurance) or coverage in respect
of any Collateral, and cause each provider of any such insurance to agree, by endorsement upon the policy or policies issued by it or by independent instruments furnished to the Administrative Agent, that it will give the Administrative Agent thirty
(30) days prior written notice before any such policy or policies shall be changed in a manner affecting the endorsements in favor of the Administrative Agent or canceled. 
 (r) Section 7.10. Section 7.10 of the Credit Agreement is amended and restated in its entirety to read as follows: 
 (a) Permit representatives and independent contractors of the Administrative Agent and each Lender to visit and inspect any of its
properties, to examine its corporate, financial and operating records, and make copies thereof or abstracts therefrom, and to discuss its affairs, finances and accounts with its directors, officers, and independent public accountants, all at the
expense of the Borrower and at such reasonable times during normal business hours and as often as may be reasonably desired, upon reasonable advance notice to the Borrower; provided, however, that when an Event of Default exists the
Administrative Agent or any Lender (or any of their respective representatives or independent contractors) may do any of the foregoing at the expense of the Borrower at any time during normal business hours and without advance notice. 
 (b) If requested by the Administrative Agent in its sole discretion, permit the Administrative Agent, and its representatives, upon
reasonable advance notice to the Borrower, to conduct an annual audit of the Collateral at the expense of the Borrower. 
 (c)
If requested by the Administrative Agent in its sole discretion, promptly deliver to the Administrative Agent (a) asset appraisal reports with respect to all of the real and personal property owned by the Borrower and its Subsidiaries (limited
to one per year so long as no Event of Default exists), and (b) a written audit of the accounts receivable, inventory, payables, controls and systems of the Borrower and its Subsidiaries (limited to one per year so long as no Event of Default
exists). 
 (d) Upon the reasonable written request of the Administrative Agent following the occurrence of any event or the
discovery of any condition which the Administrative Agent or the Required Lenders reasonably believe has caused (or could be reasonably expected to cause) the representations and warranties set forth in Section 6.09 to be untrue in any
material respect, furnish or cause to be furnished to the Administrative Agent, at the Loan Parties’ expense, a report of an environmental assessment of reasonable scope, form and depth, (including, where appropriate, invasive soil or
groundwater sampling) by a consultant reasonably acceptable to the Administrative Agent as to the nature and extent of 

  

 7 

 
the presence of any Hazardous Materials on any real properties and as to the compliance by the Borrower or any of its Subsidiaries with Environmental Laws at
such real properties. If the Loan Parties fail to deliver such an environmental report within seventy-five (75) days after receipt of such written request then the Administrative Agent may arrange for the same, and the Loan Parties hereby grant
to the Administrative Agent and its representatives access to the real properties to reasonably undertake such an assessment (including, where appropriate, invasive soil or groundwater sampling). The reasonable cost of any assessment arranged for by
the Administrative Agent pursuant to this provision will be payable by the Loan Parties on demand and added to the obligations secured by the Collateral Documents. 
 (s) Section 7.14. A new Section 7.14 is added to the Credit Agreement to read as follows: 
 7.14 Pledged Assets. 
 On or before the date that is thirty days after the First
Amendment Effective Date and at all times thereafter: 
 (a) Equity Interests. Cause (a) 100% of the issued and
outstanding Equity Interests of each Domestic Subsidiary and (b) 65% (or such greater percentage that, due to a change in an applicable Law after the date hereof, (1) could not reasonably be expected to cause the undistributed earnings of
such Foreign Subsidiary as determined for United States federal income tax purposes to be treated as a deemed dividend to such Foreign Subsidiary’s United States parent and (2) could not reasonably be expected to cause any material adverse
tax consequences) of the issued and outstanding Equity Interests entitled to vote (within the meaning of Treas. Reg. Section 1.956-2(c)(2)) and 100% of the issued and outstanding Equity Interests not entitled to vote (within the meaning of
Treas. Reg. Section 1.956-2(c)(2)) in each Foreign Subsidiary directly owned by any Loan Party to be subject at all times to a first priority, perfected Lien in favor of the Administrative Agent pursuant to the terms and conditions of the
Collateral Documents, together with such other documents as may be reasonably requested by the Administrative Agent. 
 (b)
Other Property. (i) Except for Excluded Property, cause (A) all owned real property, (B) to the extent available using commercially reasonable efforts, all leasehold interests in real property and (C) all personal property
of each Loan Party to be subject at all times to first priority, perfected Liens in favor of the Administrative Agent to secure the Obligations as required from time to time pursuant to the terms and conditions of the Collateral Documents, subject
in any case to Permitted Liens and (ii) deliver such other documentation as the Administrative Agent may reasonably request in connection with the foregoing, including, without limitation, appropriate UCC-1 financing statements, intellectual
property notices, mortgages, real estate title insurance policies, flood hazard certifications, surveys, environmental reports, zoning letters, landlord’s waivers, certified resolutions and other organizational and authorizing documents of such
Person, favorable opinions of counsel to such Person, all in form, content and scope reasonably satisfactory to the Administrative Agent. 
  

 8 

 (t) Section 8.03. Section 8.03(e) of the Credit Agreement is amended and restated in its
entirety to read as follows: 
 (e) purchase money Indebtedness (including obligations in respect of Capital Leases or
Synthetic Leases) hereafter incurred by the Borrower or any of its Subsidiaries to (i) finance the purchase of real property, and renewals, refinancings and extensions thereof (so long as the principal amount is not increased), and
(ii) finance the purchase of fixed personal property assets and renewals, refinancings and extensions thereof (so long as the principal amount is not increased), provided that (A) in the case of both subclauses (i) and (ii), no
such Indebtedness when incurred shall exceed the purchase price of the asset(s) financed and (B) in the case of subclause (ii), the total of all such Indebtedness incurred for all such Persons taken together shall not exceed an aggregate
principal amount of $10,000,000 at any one time outstanding; 
 (u) Section 8.06. Section 8.06 of the Credit Agreement is
amended and restated in its entirety to read as follows: 
 Declare or make, directly or indirectly, any Restricted Payment,
or incur any obligation (contingent or otherwise) to do so, except that: 
 (a) each Subsidiary may make Restricted Payments
to any Loan Party and any other Person that owns an Equity Interest in such Subsidiary, ratably according to their respective holdings of the type of Equity Interest in respect of which such Restricted Payment is being made; and 
 (b) the Borrower and each Subsidiary may declare and make dividend payments or other distributions payable solely in common Equity
Interests of such Person. 
 (c) Section 10.03. The last paragraph of Section 10.03 of the Credit Agreement is amended and
restated in its entirety to read as follows: 
 The Administrative Agent shall not be responsible for or have any duty to
ascertain or inquire into (i) any statement, warranty or representation made in or in connection with this Agreement or any other Loan Document, (ii) the contents of any certificate, report or other document delivered hereunder or
thereunder or in connection herewith or therewith, (iii) the performance or observance of any of the covenants, agreements or other terms or conditions set forth herein or therein or the occurrence of any Default, (iv) the validity,
enforceability, effectiveness or genuineness of this Agreement, any other Loan Document or any other agreement, instrument or document, or the creation, perfection or priority of any Lien purported to be created by the Collateral Documents,
(v) the value or the sufficiency of any Collateral, or (vi) the satisfaction of any condition set forth in Article V or elsewhere herein, other than to confirm receipt of items expressly required to be delivered to the
Administrative Agent. 
 (d) Section 10.10. Section 10.10 of the Credit Agreement is amended and restated in its entirety to
read as follows: 
 10.10 Collateral and Guaranty Matters. 
 The Lenders and the L/C Issuer irrevocably authorize the Administrative Agent, at its option and in its discretion, 
 (a) to release any Lien on any property granted to or held by the Administrative Agent under any Loan Document (i) upon termination
of the Aggregate Revolving Commitments and payment in full of all Obligations (other 

  

 9 

 
than contingent indemnification obligations) and the expiration or termination of all Letters of Credit, (ii) that is transferred or to be transferred
as part of or in connection with any Disposition permitted hereunder or under any other Loan Document or any Involuntary Disposition, or (iii) as approved in accordance with Section 11.01; 
 (b) to subordinate any Lien on any property granted to or held by the Administrative Agent under any Loan Document to the holder of any
Lien on such property that is permitted by Section 8.01(i); and 
 (c) to release any Guarantor from its
obligations under the Guaranty if such Person ceases to be a Subsidiary as a result of a transaction permitted hereunder. 
 Upon request by
the Administrative Agent at any time, the Required Lenders will confirm in writing the Administrative Agent’s authority to release or subordinate its interest in particular types or items of property, or to release any Guarantor from its
obligations under the Guaranty, pursuant to this Section 10.10. 
 (e) Section 11.01. (i) the word
“and” is moved from the end of Section 11.01(c) to the end of Section 11.01(d) and (ii) a new Section 11.01(e) is added to the Credit Agreement to read as follows: 
 (e) no amendment, waiver or consent shall release all or substantially all of the Collateral unless signed by each Lender whose
Obligations are secured by such Collateral; 
 (f) Schedules. (i) Schedule 6.17 is added to the Credit Agreement and
(ii) Schedule 6.19 is replaced with Schedules 6.19(a), 6.19(b) and 6.19(c), each to read as attached hereto; provided that parties hereto acknowledge that Schedule 6.17 as delivered on the First Amendment Effective Date is in draft form
and that the Loan Parties shall deliver a final Schedule 6.17 to the Administrative Agent on or before November 10, 2007 (such final Schedule shall replace and supersede such prior draft). 
 (g) Exhibits. Exhibit 7.12 is amended and restated in its entirety to read as attached hereto. 
 2. Waiver. The Lenders hereby waive the Acknowledged Defaults. This waiver is a one-time waiver and shall not be construed to be a waiver of
any other Default that may exist. 
 3. Effectiveness; Conditions Precedent. This Agreement shall be effective as of the date hereof
when all of the conditions set forth in this Section 3 shall have been satisfied in form and substance satisfactory to the Administrative Agent. 
 (a) Execution and Delivery of this Agreement. The Administrative Agent shall have received copies of this Agreement duly executed by a Responsible Officer of the signing Loan Party, the Required Lenders and the
Administrative Agent. 
 (b) Execution and Delivery of the Security Agreement. The Administrative Agent shall have
received an executed copy of the Security Agreement, together with appropriate UCC-1 financing statements naming the Loan Parties as debtors and the Administrative Agent as the secured party. 
  

 10 

 (c) Resolutions. The Administrative Agent shall have received copies of certified
resolutions for each Loan Party approving this Agreement and the granting of a security interests to the Administrative Agent to secure the Obligations. 
 (d) Opinions of Counsel. The Administrative Agent shall have received a favorable opinion of Garvey Schubert Barer, addressed to the Administrative Agent and the Lenders, in form and substance satisfactory to
the Administrative Agent. 
 (e) Amendment Fee. The Administrative Agent shall have received (i) for the account
of each Lender executing this Agreement by 12:00 Noon, October 11, a fee of 0.10% of such Lender’s Commitment and (ii) for the account of each Lender executing this Agreement after 12:00 Noon, October 11 but prior to 12:00 Noon,
October 17, a fee of 0.05% of such Lender’s Commitment. 
 (f) Fees and Expenses. The Borrower shall have
paid all fees and expenses owed by the Borrower to the Administrative Agent and the Arranger. 
 4. Ratification of Credit Agreement.
The Loan Parties acknowledge and consent to the terms set forth herein and agree that this Agreement does not impair, reduce or limit any of their obligations under the Loan Documents. 
 5. Authority/Enforceability. Each of the Loan Parties represents and warrants as follows: 
 (a) It has taken all necessary action to authorize the execution, delivery and performance of this Agreement. 
 (b) This Agreement has been duly executed and delivered by such Person and constitutes such Person’s legal, valid and binding
obligations, enforceable in accordance with its terms. 
 (c) No consent, approval, authorization or order of, or filing,
registration or qualification with, any court or governmental authority or third party is required in connection with the execution, delivery or performance by such Person of this Agreement. 
 (d) The execution and delivery of this Agreement does not (i) violate, contravene or conflict with any provision of its, or its
Subsidiaries’ Organization Documents or (ii) materially violate, contravene or conflict with any Laws applicable to it or any of its Subsidiaries. 
 6. Representations and Warranties of the Loan Parties. The Loan Parties represent and warrant to the Lenders that after giving effect to this Agreement (a) the representations and warranties of the Loan
Parties set forth in Article VI of the Credit Agreement are true and correct in all material respects as of the date hereof, and (b) no event has occurred and is continuing which constitutes a Default. 
 7. Release. In consideration of the Lenders entering into this Agreement, the Loan Parties hereby release the Administrative Agent, the Lenders,
the L/C Issuer and the Administrative Agent’s and the Lenders’ respective officers, employees, representatives, agents, counsel and directors from any and all actions, causes of action, claims, demands, damages and liabilities of whatever
kind or nature, in law or in equity, now known or unknown, suspected or unsuspected to the extent that any of the foregoing arises from any action or failure to act solely in connection with the Loan Documents on or prior to the date hereof.

  

 11 

 8. Counterparts/Telecopy. This Agreement may be executed in any number of counterparts, each of
which when so executed and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts of this Agreement by telecopy or pdf shall be effective as an original. 
 9. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY AND CONSTRUED AND INTERPRETED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 10. Reference to and Effect on Credit Agreement. Except as specifically modified
herein, the Credit Agreement and the other Loan Documents shall remain in full force and effect and are each hereby ratified and confirmed. The execution, delivery and effectiveness of this Agreement shall not operate as a waiver of any right, power
or remedy of the Lenders or the Administrative Agent under the Credit Agreement or any of the other Loan Documents, or constitute a waiver or cones of any provision of the Credit Agreement or any of the other Loan Documents, except as expressly set
forth herein. This Agreement shall be considered a Loan Document from and after the date hereof. 
 11. Estoppel, Acknowledgement
and Reaffirmation. The obligations of the Loan Parties under the Loan Documents constitute valid and subsisting obligations of such Persons that are not subject to any credits, offsets, defenses, claims, counterclaims or adjustments of any kind.
Each Loan Party hereby acknowledges its respective obligations under the Loan Documents as amended hereby and reaffirms that each of the liens and security interests created and granted in or pursuant to the Loan Documents are valid and subsisting
and that this Agreement shall in no manner impair or otherwise adversely affect such liens and security interests.  
 [remainder of
page intentionally left blank] 
  

 12 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of the
date first above written. 
  

									
	BORROWER:	 		 	NAUTILUS, INC.,
		 		 	a Washington corporation
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
	GUARANTORS:	 		 	DASHAMERICA, INC.
		 		 	a Colorado corporation
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

 13 

									
	ADMINISTRATIVE	 		 	
	AGENT:	 		 	BANK OF AMERICA, N.A.,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

 14 

									
	LENDERS:	 		 	BANK OF AMERICA, N.A.,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
		 		 	U.S. BANK NATIONAL ASSOCIATION,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
		 		 	KEYBANK NATIONAL ASSOCIATION,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
		 		 	UNION BANK OF CALIFORNIA, N.A.,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	
			
		 		 	WELLS FARGO HSBC TRADE BANK,
					
		 		 		 	By:	 	 
		 		 		 	Name:	 	
		 		 		 	Title:	 	

  

 15 

 Exhibit 7.12 
 FORM OF JOINDER AGREEMENT 
 THIS JOINDER AGREEMENT (the “Agreement”),
dated as of                     , 20    , is by and between
                    , a
                    (the “Subsidiary”), and BANK OF AMERICA, N.A., in its capacity as Administrative Agent under that certain Credit
Agreement (as it may be amended, modified, restated or supplemented from time to time, the “Credit Agreement”), dated as of February 14, 2007, by and among NAUTILUS, INC., a Washington corporation (the “Borrower”), the
Guarantors, the Lenders and Bank of America, N.A., as Administrative Agent. All of the defined terms in the Credit Agreement are incorporated herein by reference. 
 The Loan Parties are required by Section 7.12 of the Credit Agreement to cause the Subsidiary to become a “Guarantor”. 
 Accordingly, the Subsidiary hereby agrees as follows with the Agent, for the benefit of the Lenders: 
 1. The Subsidiary hereby acknowledges, agrees and confirms that, by its execution of this Agreement, the Subsidiary will be deemed to be a party to the
Credit Agreement and a “Guarantor” for all purposes of the Credit Agreement, and shall have all of the obligations of a Guarantor thereunder as if it had executed the Credit Agreement. The Subsidiary hereby ratifies, as of the date hereof,
and agrees to be bound by, all of the terms, provisions and conditions applicable to the Guarantors contained in the Credit Agreement. Without limiting the generality of the foregoing terms of this paragraph 1, the Subsidiary hereby jointly and
severally together with the other Guarantors, guarantees to each Lender and the Administrative Agent, as provided in Article IV of the Credit Agreement, the prompt payment and performance of the Obligations in full when due (whether at stated
maturity, as a mandatory prepayment, by acceleration or otherwise) strictly in accordance with the terms thereof. 
 2. The Subsidiary hereby
acknowledges, agrees and confirms that, by its execution of this Agreement, the Subsidiary will be deemed to be a party to the Security Agreement, and shall have all the obligations of an “Obligor” (as such term is defined in the Security
Agreement) thereunder as if it had executed the Security Agreement. The Subsidiary hereby ratifies, as of the date hereof, and agrees to be bound by, all of the terms, provisions and conditions contained in the Security Agreement. Without limiting
generality of the foregoing terms of this paragraph 2, the Subsidiary hereby grants to the Administrative Agent, for the benefit of the Lenders, a continuing security interest in, and a right of set off against any and all right, title and interest
of the Subsidiary in and to the Collateral (as such term is defined in Section 2 of the Security Agreement) of the Subsidiary. The Subsidiary hereby represents and warrants to the Administrative Agent that: 
 (i) Attached hereto as Schedule 1 are revised Schedules 6.13, 6.17, 6.19(a) and 6.19(b) to the Credit
Agreement. 
 (ii) Except as set forth on Schedule 2, the Subsidiary has not during the past five years
(a) changed its legal name, (b) changed its state of formation, or (c) been party to a merger, consolidation or other change in structure. 
 3. The address of the Subsidiary for purposes of all notices and other communications is the same as the Borrower and Guarantors as set forth on Schedule 11.02 of the Credit Agreement. 
  

 16 

 4. The Subsidiary hereby waives acceptance by the Administrative Agent and the Lenders of the guaranty by
the Subsidiary under Article IV of the Credit Agreement upon the execution of this Agreement by the Subsidiary. 
 5. This Agreement may be
executed in two or more counterparts, each of which shall constitute an original but all of which when taken together shall constitute one contract. 
 6. This Agreement shall be governed by and construed and interpreted in accordance with the laws of the State of New York. 
 IN WITNESS WHEREOF, the Subsidiary has caused this Joinder Agreement to be duly executed by its authorized officers, and the Administrative Agent, for the benefit of the Lenders, has caused the same to be accepted by
its authorized officer, as of the day and year first above written. 
  

			
	[SUBSIDIARY],
	a                     corporation
		
	By:	 	 
	Name:	 	
	Title:	 	

			
	
	Acknowledged and accepted:
	
	BANK OF AMERICA, N.A.,
	as Administrative Agent
		
	By:	 	 
	Name:	 	
	Title:	 	

  

 17

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