Nautilus 2006 Annual Report Download - page 145

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Promptly after completion of such audit Deloitte shall supply Seller with copies of the Audited Closing Financial Statements
and Deloitte's opinion thereon (together with the Audited Closing Financial Statements, the “Audit Report”) stating that the
Audited Closing Financial Statements have been prepared in accordance with U.S. GAAP on a going concern basis
consistently applied.
8
Article 2.4
Closing Audit; Adjustment of Purchase Price
.
(a) Within sixty (60) calendar days after the Closing Date, Deloitte Touche Tomatsu (“Deloitte”), or other independent auditors
approved by Buyer will prepare an audited balance sheet of the Business, as at the Closing Date, and an audited statement of
income of the Business for the period beginning January 1, 2007 and ending on the Closing Date, together with a
determination of the net book value of the After Acquired Assets and the Disposed Assets (each as hereinafter defined)
determined in accordance with the provisions of clause (c) of this Article and U.S. GAAP (the “Audited Closing Financial
Statements”). The fees and expenses of such audit shall be paid by Seller; provided , that Buyer will reimburse Seller for the
incremental audit fees as compared to the fees associated with Seller's previous statutory audit.
(b) The amount of the Purchase Price shall be adjusted upwards or downwards in respect of the value of the Inventory as
reflected in the Audited Closing Financial Statements (the
“
Final Inventory Value
”
)
as follows:
(i) If the Final Inventory Value is greater than US(*), the Purchase Price shall be increased by an amount equal to the
difference between the Final Inventory Value and (*); and
(ii) If the Final Inventory Value is less than US(*), the Purchase Price shall be decreased by an amount equal to the
difference between US(*) and the Final Inventory Value.
(c) The amount of the Purchase Price shall be adjusted upwards or downwards in respect of the net book value of fixed assets
acquired by Seller after December 31, 2006 and included in the Assets acquired by Buyer at Closing as reflected in the
Audited Closing Financial Statements (the “After Acquired Assets”) and the net book value of fixed assets disposed of by
Seller after December 31, 2006 but prior to Closing (the
“
Disposed Assets
”
)
as follows:
(i) If the net book value of the After Acquired Assets is greater than the net book value of the Disposed Assets, the
Purchase Price shall be increased by an amount equal to the difference between the net book value of the After
Acquired Assets and the net book value of the Disposed Assets; and
(*) Certain information on this page has been omitted and filed separately with the Commission. Confidential treatment has been requested
with respect to the omitted portions.