Discount to Market. The Stock Warrant Agreement puts forth the following schedule as a discount to market of Vivakor’s Common Stock at the time the option is exercised: The Exercise Price shall be (i) ninety-five percent (95%) of the Market Price on the Conversion Date if the Consideration has matured between three hundred sixty-five (365) days and seven hundred twenty-nine (729) days (ii) ninety percent (90%) of the Market Price on the Conversion Date if the Consideration has matured between seven hundred thirty (730) days and one thousand ninety-four (1,094) days (ii) eighty-five percent (85%) of the Market Price on the Conversion Date if the Consideration has matured between one thousand ninety-five (1,095) days and one thousand four hundred fifty-nine (1,459) days (iv) eighty percent (80%) of the Market Price on the Conversion Date if the Consideration has matured between one thousand four hundred sixty (1,460) and one thousand eight hundred twenty-five (1,824) days (v) seventy-five percent (75%) of the Market Price on the Conversion Date if the Consideration has matured between one thousand eight hundred twenty-six (1,825) and two thousand eight (2,008) days, all of which is subject to adjustment as provided below in Section 11 and the meanings of Capitalized terms in Section 2 of the Stock Warrant Agreement. On the day following the five years and six months after the purchase of Royalty II Class B Units the Option to Convert to Common Stock is cancelled.
