Common use of Alternative Payment Clause in Contracts

Alternative Payment. In the event of proposed Change of Control, PTI shall notify CFFT within (30) days following the execution of a definitive agreement providing for a Change of Control transaction and CFFT may elect to accept in lieu of the royalties specified in Section 4.2 the following: (a) if the Change of Control occurs prior to the selection by PTI of a compound intended for Approval as a Product in the Field, a one-time payment to CFFT; equal to the consideration CFFT would have received if it had 1.5 million shares of PTI common stock; or; (b) if the Change of Control occurs after the selection by PTI of a compound intended for Approval as a Product in the Field, an amount equal to the consideration CFFT would have received if it had owned 2.5 million shares of PTI common stock.