Common use of Exercise Price of Options Clause in Contracts

Exercise Price of Options. The Parties hereby agree that Section 5(b) of the Agreement shall be revised such that the exercise of the options issuable thereunder shall be the price equal to the “last sale price” of the Company’s common stock on the date of grant of the option, which date of grant shall in every case be a trading day. For purposes hereof, the term “last sale price” shall mean (i) if the common stock is listed on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), the last sale price of the common stock in the principal trading market for the common stock as reported by the exchange, Nasdaq or the NASD, as the case may be; (ii) if the common stock is not listed on a national securities exchange or quoted on the Nasdaq National Market, Nasdaq SmallCap Market or the NASD OTC Bulletin Board (or successor such as the Bulletin Board Exchange), but is traded in the residual over-the-counter market, the closing bid price for the common stock on the last trading day preceding the date in question for which such quotations are reported by the Pink Sheets, LLC or similar publisher of such quotations; and (iii) if the fair market value of the common stock cannot be determined pursuant to clause (i) or (ii) above, such price as the Board of Directors of the Company shall determine, in good faith.