Placement Option Sample Clauses

A Placement Option clause grants a party, typically an issuer or seller, the right to place securities or assets with a third party under specified conditions. In practice, this means that if certain criteria are met—such as a buyer failing to purchase the agreed amount—the party holding the placement option can offer the unsold portion to other investors or entities. This clause ensures that the transaction can proceed smoothly even if the original buyer does not fulfill their commitment, thereby reducing the risk of unsold inventory and providing flexibility in completing the deal.