Item 5.02 Departure of Directors or Principal Officers; Election of Directors;
Appointment of Principal Officers; Compensatory Arrangements of Certain Officers.

(e) In a meeting of the Compensation Committee of the Board of Directors of Nautilus, Inc., a Washington corporation (the "Company"), held on November 24, 2008, a new compensation plan was approved for Kenneth Fish in connection with his appointment to the position of Chief Financial Officer of the Company as of November 11, 2008. Effective as of his appointment, Mr. Fish's annual base salary will be increased to $245,000. Mr. Fish will be eligible to participate in the Company's incentive bonus program with a targeted annual bonus of 100% of his base salary. Also on November 24, 2008, the Company's Compensation Committee approved the grant to Mr. Fish of a stock option exercisable for up to 75,000 shares of the Company's common stock pursuant to the Company's 2005 Long Term Incentive Plan. Subject to continued employment with the Company, such option will vest as to 25% of the total shares on each of the second and third anniversaries of the date of grant, and as to the remaining 50% on the fourth anniversary of the date of grant. The Company will provide Mr. Fish with health and welfare benefits consistent with other senior executives of the Company.

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