Intresting news from our latest filing: www.ssdi-power.com
posted on
Mar 01, 2007 02:59AM
Prior to the auction, Patriot, Scripps Secured Data, Inc. (“SSDI”) and a junior secured lender to Holocom entered into an Earnout Agreement, pursuant to which:
1. The junior secured lender agreed that he would not contest the reasonability of the sale and would transfer his Holocom loans (in a principal amount of approximately $24,000,000) to SSDI;
2. SSDI agreed that it would engage in reasonable efforts to sell product based on Holocom’s Secure Communications Raceway technology and that it would pay the junior secured lender 3% of its net sales of such products for 4 years; and
3. Patriot agreed that it would transfer the Holocom assets and $140,000 to Scripps in return for all of the Preferred Stock of SSDI (constituting approximately 45% of the outstanding capitalization of SSDI
