Common use of Source of Recovery Clause in Contracts

Source of Recovery. Seller may satisfy any losses incurred by TPN and/or ESAN under Section 9.02(a) by tendering to TPN and/or ESAN shares of ESAN Common Stock subject to the following limitations: 9.06.1 the first $100,000 of all valid claims may be satisfied with shares of ESAN Common Stock, the value of which is equal to one hundred thousand ($100,000) dollars, and 9.06.2 thereafter, to the extent the aggregate valid claims exceed $100,000, the Seller may satisfy up to fifty (50%) percent the aggregate valid claims with shares of ESAN Common Stock. For purposes of this Section 9.06 the value of the ESAN Common Stock means the automatic averages of the Closing Price of ESAN Common Stock on each trading day during the twenty (20) consecutive trading days immediately preceding the date of the notice provided by TPN and/or ESAN under Section 9.03.