Nautilus 2006 Annual Report Download - page 146

Download and view the complete annual report

Please find page 146 of the 2006 Nautilus annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 201

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201

For purposes of this Article 2.4 (c), (1) the net book value of the After Acquired Assets and the net book value of the
Disposed Assets shall be determined in accordance with U.S. GAAP and net of depreciation calculated in a manner
consistent with Seller’s 2007 practices for similar assets; (2) fixed assets, for purposes of applying this Purchase Price
adjustment, shall include only those assets with an original acquisition cost greater than US$12,500 (TWELVE
THOUSAND FIVE HUNDRED U.S. DOLLARS); and (3) fixed assets acquired after December 31, 2006 with an original
acquisition cost greater than US$30,000 (THIRTY THOUSAND U.S. DOLLARS) shall not be included in the calculation
and shall be retained by Seller and not acquired by Buyer, unless Nautilus shall have given advance written approval of the
acquisition of such assets or waived such prior approval at Closing.
9
(ii) If the net book value of the After Acquired Assets is less than the net book value of the Disposed Assets, the Purchase
Price shall be decreased by an amount equal to the difference between the net book value of the Disposed Assets and
the net book value of the After Acquired Assets.
(d) The amount of the Purchase Price shall be adjusted upwards or downwards in accordance with the provisions of clauses
(b) and (c) of this Article on a net basis. In the event that, after application of the provisions of clauses (b) and (c) of this
Article, the Purchase Price is adjusted, Seller shall pay to Buyer, if the Purchase Price is adjusted downwards, or Buyer shall
pay to Seller, if the Purchase Price is adjusted upwards, the full net amount by which the Purchase Price is to be adjusted, in
US Dollars, within twenty (20) calendar days after the Audited Closing Financial Statements are delivered to Seller, except
as permitted under clause (e) of this Article below.
(e) The Audited Closing Financial Statements shall be deemed to be and shall be final, binding and conclusive on the Parties;
provided , that , Buyer may dispute any amount reflected on the Audited Closing Financial Statements if Buyer shall notify
Seller in writing of the amount of and describe each disputed item within twenty (20) calendar days of Seller’s receipt of the
Audited Closing Financial Statements. In the event of such a dispute, Seller and Buyer shall attempt to reconcile their
differences through friendly negotiations. If Buyer and Seller are unable to reach such a resolution within twenty
(20) calendar days of Seller’s written notice to Buyer, Seller and Buyer shall submit the items in dispute for resolution to an
independent accounting firm of international reputation selected by Nautilus and not