Common use of Xxxxxx Option to Avoid Dilution Clause in Contracts

Xxxxxx Option to Avoid Dilution. Clores, at his option, may maintain his nine percent (90/o) common stock ownership interest in the Buyer at any time by purchasing Buyer's common stock in lieu of cash royalty payments due under this section 2. Thus, Clores may receive the Buyer's common stock in lieu of a cash royalty fee in order to maintain his Nine Percent (9%) stock ownership interest, if he so chooses. At no time shall Clores' ownership interest in Buyer's stock exceed Nine Percent (9%). Clores shall provide Buyer with at least 5 business days' advance notice of his intent to purchase Buyer common stock with a royalty payment. All purchases of Buyer's common stock by Clores hereunder shall be at fair market price as determined by Buyer's Board of Directors, taking into the account the average closing price of Buyer common stock on OTC Markets or any other primary trading market during the 30 days prior to the date of payment.