VRSN » Topics » 1.4 Purchase Price.

This excerpt taken from the VRSN 8-K filed Nov 23, 2005.

1.4 Purchase Price.

 

(a) As consideration for the sale, assignment, transfer, conveyance and delivery of the Transferred Assets pursuant to this Agreement:

 

(i) subject to Section 1.4(b), at the Closing, Purchaser shall pay (or cause to be paid) to Seller, in cash, an amount equal to $370,000,000 (the “Consideration”), by wire transfer to an account number provided to Purchaser by Seller prior to the Closing; and

 

(ii) at the Closing, Purchaser shall assume the Assumed Liabilities (as defined in Section 1.5(b)) by delivering to Seller a Bill of Sale and Assignment and Assumption Agreement substantially in the form of Exhibit B (the “Bill of Sale and Assignment and Assumption Agreement”).

 

(b) Notwithstanding anything to the contrary contained in this Agreement, Purchaser may, at any time after December 1, 2005, but prior to the Closing Date, elect to have Parent issue shares of Parent Common Stock to Seller in lieu of all or any portion of the Consideration (such election being referred to as the “Stock Payment Election”); provided, however, that Purchaser may not make the Stock Payment Election: (i) unless the shares of Parent Common Stock issuable to Seller are covered by an effective registration statement on Form S-3 and are not subject to restrictions on public resale under applicable U.S. securities laws; (ii) unless the shares of Parent Common Stock to be issued in the Transactions shall have been approved for listing (subject to notice of issuance) on the NASDAQ National Market; (iii) if all of the conditions set forth in Sections 5 and 6 have been satisfied or waived on or prior to December 1, 2005; and (iv) there shall not have occurred (and there shall not be reasonably likely to occur) any effect, change, event or other circumstance relating to Parent that could result in a

 

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suspension of the use of the Registration Statement (as defined in the Registration Rights Agreement) or any prospectus or prospectus supplement relating thereto. In the event that Purchaser makes the Stock Payment Election, at the Closing, Purchaser shall, in lieu of the cash payment set forth in Section 1.4(a)(i):

 

(i) pay (or cause to be paid) to Seller an amount in cash equal to the Consideration less the portion of the Consideration to which the Stock Payment Election applies (such portion being referred to as the “Stock Payment Amount”); and

 

(ii) cause Parent to issue to Seller the number of shares of Parent Common Stock (rounded down to the nearest whole share) equal to the quotient of the Stock Payment Amount divided by the Parent Average Stock Price.

 

This excerpt taken from the VRSN 10-K filed Mar 16, 2005.

PURCHASE PRICE

 

3.1 The aggregate purchase price for the SHARES shall be USD ($) 273,291,691 (in words: USD two hundred seventy three Million two hundred and ninety one thousand six hundred and ninety one) consisting of cash and VERISIGN COMMON STOCK and shall be paid as set out in Section 3.2 lit. a), b) and c) (the “PURCHASE PRICE”).

 

3.2 The PURCHASE PRICE shall be paid on the CLOSING DATE and shall be paid and delivered, as the case may be, by the PURCHASER to each of the SELLERS in accordance with the number of shares in the COMPANY sold and assigned to the PURCHASER by each of the SELLERS (the “INDIVIDUAL PURCHASE PRICE PORTION”). The PURCHASE PRICE shall consist of the following elements:

 

  (a) PURCHASER shall pay an aggregate amount of USD 177,639,599.15 (in words: USD one hundred seventy-seven Million six hundred and thirty nine thousand five hundred and ninety nine and fifteen cents) in cash to the SELLERS divided among them in accordance with their INDIVIDUAL PURCHASE PRICE PORTION;

 

  (b) PURCHASER shall deliver to the SELLERS a promise in the form attached hereto as APPENDIX 3.2 b) to deliver certificates evidencing unregistered VERISIGN common stock, USD .001 par value (the “VERISIGN COMMON STOCK”) within five (5) business days after the CLOSING DATE, having an aggregate value of USD 68,322,922.75 (in words: USD sixty eight Million three hundred twenty two thousand nine hundred twenty two and seventy five cents) divided among them in accordance with their INDIVIDUAL PURCHASE PRICE PORTION. The VERISIGN COMMON STOCK shall consist of a number of VERISIGN common stock determined by taking the average of the closing prices

 

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     of VERISIGN COMMON STOCK on the Nasdaq National Market as reported on www.nasdaq.com during the 10 consecutive trading days ending on the trading day preceding the CLOSING DATE (the “REFERENCE PRICE”) and dividing the amount of USD 68,322,922.75 by such REFERENCE PRICE and rounding up to the next share in case the calculated number included a fraction of a share; and

 

  (c) PURCHASER shall deliver to the SELLERS a promise in the form attached hereto as APPENDIX 3.2 b) to deliver in accordance with the ESCROW AGREEMENT certificates evidencing unregistered VERISIGN COMMON STOCK having an aggregate value of USD 27,329,169.10 (in words: USD twenty-seven Million three hundred and twenty nine thousand one hundred and sixty nine and ten cents) (the “ESCROW FUND”) within five (5) business days after the CLOSING DATE, to the escrow agent described in the ESCROW AGREEMENT (the “ESCROW AGENT”), it being understood that such number of VERISIGN COMMON STOCK are to be determined in accordance with the REFERENCE PRICE.

 

3.3 The cash portion of the PURCHASE PRICE according to Section 3.2 lit. a) shall be divided among the individual SELLERS in accordance with their INDIVIDUAL PURCHASE PRICE PORTION and paid to them as follows:

 

  a) The SELLERS hereby direct that an aggregate amount of USD 4,500,000 shall be paid by PURCHASER to an escrow account (the “SELLERS SPECIAL ESCROW”) designated in writing to PURCHASER by SELLERS REPRESENTATIVE prior to the CLOSING DATE. The amount paid to the SELLERS SPECIAL ESCROW is a conditional component of the PURCHASE PRICE to be paid either to the SELLERS or to Akazien GmbH in proportion to their respective INDIVIDUAL PURCHASE PRICE PORTION pursuant to the terms and conditions of the escrow agreement pursuant to which the SELLERS SPECIAL ESCROW has been established. The PURCHASER shall have no liability with respect to amounts paid under this Section 3.3 lit. (a) after payment is made to the SELLERS SPECIAL ESCROW.

 

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  b) The SELLERS hereby direct that a further aggregate amount of USD 4,250,000 shall be paid to an account (the “TRANSACTION FEE ACCOUNT”) designated by the SELLERS REPRESENTATIVE to be used to fund payment of transaction fees and expenses payable by the SELLERS with respect to the transaction described in this Agreement, and to fund expenses incurred by the SELLERS REPRESENTATIVE in his capacity as such. The PURCHASER shall have no liability with respect to amounts paid to the TRANSACTION FEE ACCOUNT once paid to such TRANSACTION FEE ACCOUNT.

 

  (c) An amount equal to USD 168,889,599.15 (total cash after deducting payments described in paragraphs (a) and (b)) shall be paid to the SELLERS, in proportion to their INDIVIDUAL PURCHASE PRICE PORTION, to such accounts as the SELLERS may designate to the Purchaser in writing prior to the CLOSE DATE.

 

3.4 Each of the SELLERS is obligated to immediately inform the PURCHASER of the reception of their respective INDIVIDUAL PURCHASE PRICE PORTION.

 

EXCERPTS ON THIS PAGE:

8-K
Nov 23, 2005
10-K
Mar 16, 2005
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