Common use of Additional Option Clause in Contracts

Additional Option. (a) Subject to the Company’s approval, which approval may be denied within its sole and absolute discretion, from the date hereof until the earlier of (i) September 1, 2017, (ii) the consummation of the Public Offering, or (iii) the occurrence of a Change of Control Event (as such term is defined in the Certificate of Designations), each Purchaser may elect to purchase, severally and not jointly with the other Purchasers and in one or more purchases, in the ratio of such Purchaser’s original Subscription Amount to the original aggregate Subscription Amount of all Purchasers, additional Debentures with an aggregate subscription amount thereof equal to $5,000,000 and receive Preferred Stock in accordance with the calculations in Section 2.2 (such securities, the “Additional Securities” and such right to receive the Additional Securities pursuant to this Section 4.18, the “Option Additional Rights”). (b) The exercise of any Option Additional Right to invest exercised by a Purchaser shall be completed on the 5th Business Day following the delivery to the Company of a duly delivered exercise notice by the exercising Purchaser. Any additional investment in the Additional Securities shall be on prices, terms (including, without limitation, provisions related to due diligence and other expense reimbursements) and maturity dates identical to those set forth in the Transaction Documents, mutatis mutandis. In order to effectuate a purchase and sale of the Additional Securities, the Company and the Purchasers shall enter into a Securities Purchase Agreement and other transaction documents identical to this Agreement and the exhibits hereto, mutatis mutandis and shall include updated disclosure schedules.