November 12, 2009 (FinancialWire) — Cerner Corp. (NASDAQ: CERN) announced that chairman Neal Patterson and vice chairman Clifford Illig have each entered into a variable prepaid forward contract covering 500,000 shares of Cerner common stock.

Patterson and Illig are entering the variable prepaid forward contracts to provide funding for other business investments. The variable prepaid forward arrangements provide Patterson and Illig with current liquidity while allowing them to maintain voting and dividend rights in the stock, as well as the ability to participate in future stock price appreciation, during the term of the contracts.

The variable prepaid forward contracts are scheduled to settle in November 2012, at which time the actual number of shares to be delivered by Patterson and Illig will be determined based on the price of the company’s common stock, with the number not to exceed 500,000 shares each. Subject to certain conditions, Patterson and Illig can also elect to settle the variable prepaid forward contracts in cash or with other collateral.

The variable prepaid forward contracts do not apply to the approximately 11.3 million remaining shares of the company’s stock and vested options held by Patterson and Illig personally, jointly or in trust over which shares Patterson and Illig have sole or shared voting power.

FinancialWire(tm) is a fully independent, proprietary news wire service. FinancialWire(tm) is not a press release service, and receives no compensation for its news, opinions or distributions. Further disclosure is at the FinancialWire(tm) web site (http://www.financialwire.net/disclosures.php). Contact FinancialWire(tm) directly via inquiries@financialwire.net.

Free annual reports for companies mentioned in the news are available through the Free Annual Reports Service (http://investrend.ar.wilink.com/?level=279).

Legal Disclaimer:

EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.