Purchase Option Clause Example from Business Contracts

Purchase Option. THIS CERTIFIES THAT, in consideration of $100 duly paid by or on behalf of EarlyBirdCapital, Inc. (the "Holder"), as registered owner of this Purchase Option, to CM Seven Star Acquisition Corporation ("Company"), Holder is entitled, at any time or from time to time upon the later of the consummation of a Business Combination or [l], 2018 ("Commencement Date"), and at or before 5:00 p.m., New York City local time, on the five year anniversary of the effective date ("Effective Date") of the Compan...y's registration statement ("Registration Statement") pursuant to which Units are offered for sale to the public ("Offering"), but not thereafter ("Expiration Date"), to subscribe for, purchase and receive, in whole or in part, up to seven hundred fifty thousand (750,000) units ("Units") of the Company, each Unit consisting of one Ordinary Share of the Company, par value $0.0001 per share ("Ordinary Shares"), one right ("Right(s)") entitling the Holder to receive one-tenth (1/10) of an Ordinary Share upon consummation of a Business Combination, and one-half of a redeemable warrant ("Warrant(s)"), each whole Warrant to purchase one (1) Ordinary Share. Each Right is the same as the right included in the Units being registered for sale to the public by way of the Registration Statement. Each Warrant has the same terms as the warrant included in the Units being registered for sale to the public by way of the Registration Statement ("Public Warrants"). If the Expiration Date is a day on which banking institutions are authorized by law to close, then this Purchase Option may be exercised on the next succeeding day which is not such a day in accordance with the terms herein. Notwithstanding anything to the contrary, the Holder agrees that it will not be permitted to exercise this Purchase Option or the Warrants underlying this Purchase Option after the five year anniversary of the Effective Date. During the period ending on the Expiration Date, the Company agrees not to take any action that would terminate the Purchase Option. This Purchase Option is initially exercisable at $10.00 per Unit so purchased; provided, however, that upon the occurrence of any of the events specified in Section 6 hereof, the rights granted by this Purchase Option, including the exercise price per Unit and the number of Units (and Ordinary Shares, Rights and Warrants) to be received upon such exercise, shall be adjusted as therein specified. The term "Exercise Price" shall mean the initial exercise price or the adjusted exercise price, depending on the context. View More