The Additional Units Clause Samples
The "Additional Units" clause defines the terms under which extra units, beyond those initially agreed upon, may be provided or purchased under a contract. Typically, this clause outlines the process for requesting additional units, any pricing adjustments, and the timeline for delivery or performance. For example, if a buyer needs more products or services than originally specified, this clause governs how those requests are handled. Its core practical function is to provide a clear mechanism for expanding the scope of supply, ensuring both parties understand their rights and obligations regarding increased quantities, and preventing disputes over unanticipated needs.
The Additional Units. In addition, the Company hereby grants to the Representative, on behalf of the Underwriters in respect of their percentages on Schedule A hereto, the Over-Allotment Option to purchase, and upon the basis of the representations and warranties and subject to the terms and conditions set forth herein, the Underwriters shall have the right to purchase, severally and not jointly, from the Company, all or a portion of the Additional Units, Additional Unit Shares and/or Additional Unit Warrants as may be necessary to cover over-allotments made in connection with the offering of the Firm Units. The Over-Allotment Option may be exercised by the Underwriters in respect of: (i) Additional Units at the Offering Price; and/or (ii) Additional Unit Shares at the Share Price; and/or (iii) Additional Warrants at the Warrant Price, in any combination of Additional Units, Additional Unit Shares and/or Additional Warrants so long as the aggregate number of Additional Unit Shares and Additional Warrants that may be issued under the Over-Allotment Option does not exceed 1,840,908 Additional Unit Shares and 920,454 Additional Warrants. The Over-Allotment Option granted hereunder may be exercised in whole at any time or in part from time to time within thirty (30) days after the date of this Agreement upon notice by the Representative to the Company (the “Notice of Exercise”). The Notice of Exercise shall set forth (i) the aggregate number of Additional Units, Additional Unit Shares and/or Additional Warrants as to which the Underwriters are exercising the Over-Allotment Option, (ii) the names and denominations in which the Additional Unit Shares to be delivered via DTC, or otherwise, as applicable, (iii) the names and denominations that any Additional Warrant certificates to be issued, as applicable, and (iv) the date of time for delivery of and payment for the Additional Units, Additional Unit Shares and/or Additional Warrants, which shall be on the day that is two (2) business days after the date of the Notice of Exercise or such other time as shall be agreed upon by the Company and the Representative (each such date, an “Option Closing Date” and the purchase price on each Option Closing Date, the “Option Purchase Price”). In connection with an exercise of the Over-Allotment Option, (a) the purchase price to be paid for the Additional Units is equal to the product of the Offering Price multiplied by the number of Additional Units to be purchased, (b) the purchase price to be p...