Default Not Exceeding 10% of Firm Securities or Option Securities Sample Clauses
This clause sets a limit on the amount of default that can occur, specifying that defaults must not exceed 10% of the total Firm Securities or Option Securities involved in a transaction. In practice, this means that if more than 10% of the securities are not delivered or paid for as agreed, certain contractual remedies or adjustments may be triggered. The core function of this clause is to cap the exposure to risk from defaults, ensuring that any failure to perform does not disproportionately impact the parties and providing a clear threshold for when additional actions may be necessary.
Default Not Exceeding 10% of Firm Securities or Option Securities. If any Underwriter or Underwriters shall default in its or their obligations to purchase the Firm Securities or the Option Securities, if the Over-allotment Option is exercised hereunder, and if the number of the Firm Securities or Option Securities with respect to which such default relates does not exceed in the aggregate 10% of the number of Firm Securities or Option Securities that all Underwriters have agreed to purchase hereunder, then such Firm Securities or Option Securities to which the default relates shall be purchased by the non-defaulting Underwriters in proportion to their respective commitments hereunder.