Common use of Unit Purchase Option Clause in Contracts

Unit Purchase Option. (i) The Company hereby agrees to issue and sell to the Representatives on each Closing Date an option (the “Unit Purchase Option”) for the purchase of an aggregate number of units (each consisting of one share of Common Stock and one Warrant to purchase a share of Common Stock) representing five percent (5%) of (i) with respect to the First Closing Date, the Firm Units and (ii) with respect to the First Closing Date and each Second Closing Date, the sum of the Option Shares and the Option Warrants issued and sold pursuant to Section 3(b) hereof on such Closing Date. The Unit Purchase Option, in the form attached hereto as Exhibit A, shall be exercisable, in whole or in part, commencing on a date that is 180 days after the effective date of this Agreement and expiring on the five-year anniversary of such effective date at an initial exercise price per unit equal to one hundred twenty percent (120%) of the initial public offering price of the Firm Units, on a cashless basis in certain circumstances as set forth in the Unit Purchase Option. The Warrants (the “Representatives’ Warrants”) and the Common Stock (the “Representatives’ Shares”) issuable upon exercise thereof are hereinafter collectively referred to together as the “Representatives’ Securities,” and the Common Stock issuable upon exercise of the Representatives’ Warrants is hereinafter referred to as the “