Common use of 5% Limitation Clause in Contracts

5% Limitation. The Optionee acknowledges that pursuant to the Plan, the number of Shares issued to any one person, within any one year period, under the Plan and all other security based compensation arrangements of the Company, cannot exceed 5% of the Company’s issued and outstanding Shares (the “5% limit”). The Optionee accepts and agrees to this limitation, and agrees that in the event the Optionee has reached the 5% limit at any time, the Optionee may not exercise any part of the Option, or any other options or rights then held by the Optionee pursuant to the Plan or any other security based compensation arrangements of the Company, during the following year.