Option to Purchase Additional Shares of Common Stock Sample Clauses

Option to Purchase Additional Shares of Common Stock. Effective at the Closing, the Company grants to the Purchaser an option to purchase a number of additional shares of Common Stock (the "ADDITIONAL COMMON SHARES") that, when added to any other shares of Common Stock then owned by the Purchaser, would result in the Purchaser owning, immediately following exercise of he option, fifty-one percent (51%) of the then-outstanding Common Stock of the Company on a fully-diluted basis. The option may be exercised in whole or in part on only one occasion and shall expire if not theretofore exercised on December 31, 2000. The exercise price per Additional Common Share shall be equal to the greater of (i) $5,000, subject to adjustment for stock splits, stock dividends, combinations, reclassifications and other similar events and (ii) ten (10) times the after-tax net income per fully-diluted share of Common Stock ("ATNI") for the year ended December 31, 1998 (if the option is exercised on or prior to December 31, 1999) or, if not so exercised by then, ten (10) times ATNI for the year ended December 31, 1999. Any dispute between the parties as to the calculation of the applicable ATNI not resolved by them shall be resolved by an independent accounting firm acceptable to the Company and the Purchaser. If the Purchaser exercises its option at a time when the exercise price has not been or cannot be finally determined, the Purchaser shall pay an estimated exercise price of $5,000 per share (i.e., the price per share paid by the Purchaser for the Common Shares), adjusted for stock splits, stock dividends, combinations, reclassifications and other similar events. If the exercise price as finally determined is greater than the estimated exercise price, the Purchaser shall, within ten (10) days of such determination, pay the balance of the exercise price to the Company. If the exercise price as finally determined is less than the estimated exercise price, the Company shall, within ten days of such determination, refund the excess payment of the exercise price to the Purchaser. The Purchaser acknowledges and agrees that, if it acquires ownership of more than fifty percent (50%) of the outstanding Common Stock on a fully-diluted basis, whether by exercise of the option granted to it pursuant to this Section 9 or otherwise, Ms. ▇▇▇▇▇▇▇ ▇▇▇ll retain the creative control provided for in the employment agreement contemplated by Section 6(g) hereof.