Post by
lscfa on May 12, 2016 2:26pm
Earn-outs
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.
Comment by
zenvesting on May 12, 2016 2:47pm
Ooops, misread that and have had a misunderstanding of that, but I still don't think we'll see that first payment until 3rd quarter.....and am not expecting much in the way of a surprise for this first period. Thanks for setting the record straight.....glad there is a more ingenius, genius around these boards :)
Comment by
homerunstock on May 12, 2016 3:33pm
Lots of blah blah - geniuses not so much !!!!