Those seem like logical conclusions to me; however

Those seem like logical conclusions to me; however, do they really have any risk over the first one? Going back to the debate the other day over how those options are exercised, CTIX is only going to get $1.70 per share from Sullivan regardless of how long they may or may not hold out to exercise the option. Sullivan will want to get maximum return on their shares, so they want the pps to rise, but regardless of what level it is at they will only pay $1.70 for them. Do I have that correct? So i think for Rosen $1.70 pps is worst case, and anything exercising under that value saves them money. Someone please correct me if I am wrong here.