Insurance Settlement Clause Samples

Insurance Settlement. In April 1999, TTI received a settlement of approximately $620,000 under the terms of a business interruption insurance policy applicable to a prior-year claim. This amount has been included in other income in the accompanying consolidated statements of operations. Approximately $420,000 and $100,000 was paid to TTI during 1999 and 2000, respectively, with the remaining $100,000 to be paid during 2001. EXHIBIT 99.2 UNAUDITED PRO FORMA CONDENSED COMBINED FINANCIAL INFORMATION‌ The following unaudited pro forma condensed combined financial information gives effect to the acquisition of TTI by Sonus using the purchase method of accounting after giving effect to the pro forma adjustments described in the accompanying notes. The unaudited pro forma condensed combined financial information should be read in conjunction with the audited historical consolidated financial statements and related notes of Sonus and TTI. Pursuant to the terms of the merger agreement, a wholly owned subsidiary of Sonus merged into TTI and the stockholders of TTI were entitled to receive up to an aggregate of 15,000,000 shares of Sonus common stock. Of these shares, 9,600,000 were issued to the TTI stockholders on January 18, 2001 and an aggregate of up to 1,200,000 escrowed shares may be released to Sonus in satisfaction of indemnification claims that may be made by Sonus under the merger agreement. The remaining 4,200,000 shares are held in escrow for release to the former TTI stockholders if certain agreed upon specified business expansion and product development performance milestones are achieved by TTI from time to time prior to December 31, 2002. Sonus has issued contingent awards of 3,000,000 shares of common stock to certain employees of TTI who became employees of Sonus as a result of the merger under the 2000 Retention Plan. These awards will vest in equal installments on each of October 31, 2002, November 30, 2002, January 31, 2003 and February 28, 2003, if (1) the recipients do not voluntarily terminate employment with TTI or Sonus prior to such vesting dates, and (2) the business expansion and product development escrow release conditions are satisfied in whole or in part. The portion of the total number of shares of Sonus common stock awarded to each employee that will be deemed vested on each vesting date will not exceed the proportion of all of the shares escrowed in the merger subject to the satisfaction of the business expansion and product development escrow release c...