Common use of ALTERNATIVE FORMS OF PAYMENT OF THE PURCHASE PRICE Clause in Contracts

ALTERNATIVE FORMS OF PAYMENT OF THE PURCHASE PRICE. In addition to payment of the purchase price of those shares with respect to which the Option is being exercised in cash, as specified in Section 2.2 (d) above, the purchase price of the shares with respect to which the Option is being exercised may be paid (i) by forgiveness of indebtedness owed by the COMPANY to the OPTIONEE; (ii) by delivery to the COMPANY of shares of Common Stock of the COMPANY equal in value, based on the "fair market value" (as hereinafter defined), to the exercise price; (iii) by reducing the number of shares to be delivered to the OPTIONEE upon exercise of the option by such number of shares of Common Stock equal in value, based on the "fair market value" (as hereinafter defined), to the exercise price; or (iv) by the delivery, concurrently with such exercise, of a properly executed exercise notice for the option and irrevocable instructions to a broker promptly to deliver to the COMPANY the purchase price for the shares with respect to which the Option is being exercised or from the proceeds of a loan being secured by the option shares. The term "fair market value" shall mean the average over the previous five trading days of the reported closing sales price on the Nasdaq Small Cap Market, the Nasdaq National Market System, or such other national securities exchange on which the COMPANY's shares may be traded, or if not trading on the Nasdaq Small Cap Market, the Nasdaq National Market System, or a national securities exchange, the average of the closing bid and asked prices in the over-the-counter market as furnished by any New York Stock Exchange member firm selected from time to time by the COMPANY for that purpose.