Default in Purchase of Public Securities or Option Shares Clause Samples

Default in Purchase of Public Securities or Option Shares. If the Underwriters shall default in its obligation to purchase the Firm Securities or the Option Shares (assuming the Over-allotment Option is exercised hereunder), the Underwriters may, in its discretion, arrange for itself or for another party or parties to purchase such Firm Securities or Option Shares to which such default relates on the terms contained herein. If, (i) in the case of a default in less than 10% of the aggregate number of Public Securities or Option Shares the Underwriters agreed to purchase, within one (1) Business Day after such default or (ii) in the case of a default of 10% or more of the aggregate number of Public Securities or Option Shares, within three (3) Business Days after such default, the Underwriters does not arrange for the purchase of such Firm Securities or Option Shares, then the Company shall be entitled to a further period of one (1) Business Day within which to procure another party or parties satisfactory to the Underwriters to purchase said Firm Securities or Option Shares on such terms. In the event that neither of the Parties arranges for the purchase of the Firm Securities or Option Shares to which a default relates as provided in this Section 6, this Agreement will automatically be terminated by either Party without liability on the part of the Company (except as provided in Sections 9.4 and 9.5 hereof); provided, however, that if such default occurs with respect to the Option Shares, this Agreement will not terminate as to the Firm Securities; and provided, further, that nothing herein shall relieve the Underwriters of its liability, to the Company for damages occasioned by its default hereunder.