( a ) if, after the date of this agreement, the assignor assigns its right, title and interest in and under the purchase agreement, and before october 21, 2009 the assignor agrees to sell any of the assignor ’ s oil and gas properties located in eddy county, new mexico, the vendor shall have the option to require the assignor to purchase any or all of the extension shares from the vendor at a price per share ( the “ exercise price ” ) equal to the greater of : ( i ) $ 3. 00 per share ; and ( ii ) the average of the closing price of the assignor ’ s common stock as quoted on the principal market or exchange on which the assignor ’ s common stock trades during the 10 trading days prior to the exercise of the option provided for in this section 2 ( a ). ( b ) the option referred to in section 2 ( a ) shall expire on october 21, 2009. the extension shares will be unrestricted and free to trade on october 22, 2009. ( c ) to exercise the option referred to in section 2 ( a ), the vendor shall provide the assignor written notice of its intention to do so, together with share certificates representing the extension shares in respect of which the option is being exercised ( collectively, a “ notice of exercise ” ). ( d ) subject to section 2 ( e ), within 5 business days of receiving a notice of exercise, the assignor shall deliver to the vendor, a check, cashiers check, money order, bank draft or other form of payment that may be acceptable to the vendor for an amount equal to the exercise price multiplied by the number of extension shares to which the notice of exercise relates and, if the notice of exercise is for less than the total number of extension shares still owned by the vendor, a share certificate for the number of extension shares represented by the share certificate submitted by the vendor as part of the notice of exercise less the number of extension shares in respect of which the option referred to in section 2 ( a ) was exercised. ( e ) if the vendor exercises the option referred to in section 2 ( a ), and the assignor does not have sufficient funds legally available to purchase the number of extension shares in respect of which the option was exercised without violating the provisions of chapter 78 of the nevada revised statutes ( the “ nrs ” ), then the assignor shall not purchase the extension shares and instead : ( i ) the assign