Note 12 - Palladium Contingent Purchase Price

6 Months Ended

Jun. 30, 2012

Contingent Purchase Price Disclosure Text Box

12.   Palladium Contingent Purchase Price

The change in the CPP for the six and three months ended June 30, 2012 and 2011 is as follows (in thousands):

	Six Months Ended June 30,					Three Months Ended June 30,
	2012			2011		2012			2011
Beginning balance	$	3,739		$	3,689	$	4,397		$	3,960
Change in net present value of the CPP		(37	)		459		(695	)		188
Ending balance	$	3,702		$	4,148	$	3,702		$	4,148

On July 9, 2012, the Company, entered into Amendment No. 3 to the Share Purchase and Shareholders’ Rights Agreement to revise the terms of the remaining future purchase price for Palladium payable in 2013. The future purchase price will be equal to €1,500,000 plus up to €500,000 based on an amount calculated in accordance with a formula driven by Palladium’s EBITDA for the twelve months ended December 31, 2012. As a result, on July 12, 2012, the Company made a payment of €1,443,000, or $1,767,000 (which is discounted from €1,500,000), which represents approximately one-half of the minimum future purchase price of €3,000,000, prior to this amendment.