Phoenix Footwear Group, Inc. announced that on January 8, 2006, Phoenix and its wholly-owned subsidiary, Altama Delta Corporation, entered into an agreement with W. Whitlow Wyatt which modified the terms of the Stock Purchase Agreement dated June 15, 2004 among them pursuant to which Phoenix acquired Altama. As a result of the agreement, the total price paid by Phoenix for Altama has been reduced by approximately $4.25 million.
This reduction was funded by approximately $1.6 million in cash previously due Wyatt held by Phoenix, 196,967 in Phoenix shares held in escrow and the termination of all future obligations under the stock purchase agreement, including a contingent earn-out covenant, and Wyatt's consulting and non-competition agreements which totaled approximately $1.6 million.
