Nautilus entered into a Private Label Consumer Credit Card Program Agreement with GE Money Bank, effective on June 15 The Program Agreement provides for the terms and conditions under which GE will offer financing to consumers purchasing goods from the company.
The company has initiated required systems changes and expects to begin offering consumer financing under the Program Agreement by late August 2010, according to a filing with the Securities & Exchange Commission. Except with respect to applications declined by GE, the company is obligated pursuant to the Program Agreement to promote the credit program offered by GE and to refrain from offering similar financing arrangements to consumers either directly or through other financing providers. The company intends to terminate its private label revolving credit card program with HSBC Bank Nevada, N.A. (“HSBC”) and is currently in discussions with HSBC in connection with this transition.
The Program Agreement sets forth certain discount, promotional and other pricing terms applicable to the company and its customers in connection with the provision of financing by GE. The initial term of the Program Agreement is effective until June 15, 2015, and is automatically renewed for successive one-year terms unless terminated, which may occur at end of the initial term upon not less than 12 months' prior written notice. The Program Agreement may also be terminated by either party in certain other situations including, but not limited to, bankruptcy, material adverse changes, dissolution, change of control, default under third-party financing arrangements, and breach of contract. The foregoing description of the Program Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Program Agreement.
On June 14, 2010, the company and Dent-A-Med, Inc. (“Dent-A-Med”) entered into a HELPcard Merchant Agreement (the “Merchant Agreement”), effective on June 11, 2010, providing for the terms under which Dent-A-Med will offer customized private label consumer financing programs (“HELPcard”) to qualified customers of the company. The company intends to offer HELPcard financing to customers with respect to credit applications which have been declined by either HSBC or GE.
The Merchant Agreement provides for the terms and conditions under which Dent-A-Med will offer financing to consumers purchasing goods from the company. The Merchant Agreement sets forth certain consumer pricing terms and fees applicable to the company and its customers in connection with the provision of HELPcard financing. The Merchant Agreement is effective until June 11, 2011, and is automatically renewed for successive one-year terms unless the contract is terminated by either party. The Merchant Agreement may be terminated by either party upon not less than 30 days prior written notice. The foregoing description of the Merchant Agreement does not purport to be complete and is qualified in its entirety by reference to the full text of the Merchant Agreement.