Common use of Authority to Issue Shares Clause in Contracts

Authority to Issue Shares. The Grantor has taken all necessary corporate action to authorize and reserve and permit it to issue, and at all times from the date hereof through the Termination Date shall have reserved, all the Option Shares issuable pursuant to this Agreement, and the Grantor will take all necessary corporate action to authorize and reserve and permit it to issue all additional shares of Grantor Common Stock or other securities which may be issued pursuant to Section 4, all of which, upon their issuance and delivery in accordance with the terms of this Agreement, will be duly authorized, validly issued, fully paid and nonassessable, will be delivered free and clear of all security interests, liens, claims, pledges, options, rights of first refusal, agreements, limitations on the Grantee's voting rights, charges and other encumbrances of any nature whatsoever (other than this Agreement) and will not be subject to any preemptive rights.