; and (bb) treat options, convertible securities, and agreements described in item (aa) as though the rights granted have been exercised. (II) Agreements to open or continue negotiations An agreement to open or continue negotiations towards the possibility of a merger or a sale of stock at some later date is not considered an agreement in principle and is not given present effect. (III) Conditions precedent Stock options, convertible securities, and agreements that are subject to conditions precedent that are incapable of fulfillment, speculative, conjectural, or unenforceable under State or Federal law, or where the probability of the transaction (or exercise of the rights) occurring is shown to be extremely remote, are not given present effect. (IV) Termination of control (aa) In general An individual, concern, or other entity that controls 1 or more other concerns cannot use stock options, convertible securities, or agreements to appear to terminate such control before actually doing so. (bb) Divesting The Administrator shall not give present effect to the ability of an individual, concern, or other entity to divest all or part of their ownership interest in a concern in order to avoid a finding of affiliation. (iii) Affiliation based on management Affiliation arises where— (I) the chief executive officer or president of the applicant concern (or other officers, managing members, or partners who control the management of the concern) also controls the management of 1 or more other concerns; (II) a single individual, concern, or entity that controls the board of directors or management of 1 concern also controls the board of directors or management of 1 of more other concerns; or (III) a single individual, concern, or entity controls the management of the applicant concern through a management agreement. (iv) Affiliation based on identity of interest (I) Definition In this clause, the term close relative means— (aa) a spouse, parent, child, or sibling