Option to Purchase Additional Ownership Interests Sample Clauses

Option to Purchase Additional Ownership Interests. After ___ has served as the supervisor or supervising partner of an entity covered by this Agreement for two complete fiscal years ending August 31, ___ shall have the right to acquire additional supervisor or supervising partner interests in that entity out of SRI’s ownership interests pursuant to the following provisions: (a) may purchase an additional interest only if the entity’s net royalty sales and net income (as defined below) increased during the preceding fiscal year ending August 31. (b) If eligible, ___ shall have the right to purchase up to an additional 2% interest at the end of each consecutive two-year period. (c) To purchase an additional interest, ___ must give SRI written notice of ___‘s election to purchase the interest and specify the amount of the additional percentage interest being purchased not later than November 30 of each eligible year. (d) ‘s purchase of any additional interest shall become effective the following January 1, subject to SRI’s receipt of the purchase price for the interest. (e) The purchase price for ___‘s additional interest shall equal, on a percentage point basis, the same amount as the original purchase price for ___‘s original interest in the entity. (f) shall pay the purchase price for the additional interest by delivering a cashier’s check payable to SRI with ___‘s written notice of election to purchase the interest. (g) may not purchase more than a cumulative total of an additional 5% supervisor or supervising partner interest in each entity. (h) may not purchase an additional interest if it would result in SRI owning less than 51% of an entity.