RE:RE:RE:RE:RE:RE:RE:little order from SICPA My point is that the minimum is a minimum.
You have to compute the Earn-out amount first and then if it's under the minimum, you get the minimum.
From the PURCHASE AGREEMENT, SICPA has 10 days to pay the minimum payment and 60 days to pay the excess of it :
2.2 Earn-Out Amounts and Post Earn-Out Additional Payments
(a) Earn-Out Amounts. Buyer and Seller agree that a portion of the Purchase Price payable to EC will be calculated and paid based upon Net Revenues as follows:
(i) Buyer shall pay to EC a minimum amount (the “Minimum Annual Earn-Out Amount”) with respect to each Calculation Period during the Earn-Out Term equal to CA$1,500,000, payable in two equal semi-annual installments. Within ten (10) Business Days following the end of each six-month period during the Earn-Out Term, Buyer shall pay to EC one such installment amount of CA$750,000, being the amount equal to fifty percent (50%) of the Minimum Annual Earn-Out Amount due for that Calculation Period.
(ii) Within sixty (60) days following the end of each six-month period during the Earn-Out Term, Buyer shall pay to EC an amount equal to the excess, if any, of (i) five percent (5%) of the Net Revenues for such six-month period then ended, over (ii) the sum of all payments in respect of the Minimum Annual Earn-Out Amount made and attributable to such six-month period.
Zario