Common use of Allocation in Initial Underwriting Clause in Contracts

Allocation in Initial Underwriting. If all the eligible shares of Registrable Common requested to be included in the Initial Underwriting cannot be so included as a result of the limit on the aggregate number of shares of Registrable Common set forth in subsection 2.1, the number of shares of Registrable Common that may be so included shall be allocated among the Securities Holders pro rata on the basis of the number of shares of Registrable Common held by such eligible Securities Holders; provided, however, that such allocation shall not operate to reduce the aggregate number of shares of Registrable Common that may be so included in such underwriting. If any Securities Holder does not request inclusion of the maximum number of eligible shares of Registrable Common allocated to it pursuant to the above-described procedure, the remaining portion of its allocation shall be reallocated among those requesting eligible Securities Holders whose allocation did not satisfy their requests pro rata on the basis of the number of shares of Registrable Common held by such Securities Holders, and this procedure shall be repeated until all of the shares of Registrable Common which may be included in the underwriting have been so allocated.