Common use of Corporate Law Status of Shares Clause in Contracts

Corporate Law Status of Shares. The shares of Common Stock issuable upon exercise of the Option in accordance herewith, upon issuance, delivery and payment for such shares in accordance with this Agreement, shall constitute validly issued and outstanding shares of capital stock of People’s United. When so paid for, such shares will be fully paid and non-assessable. Throughout the Option Period (subject to the shortening thereof under Section 8 hereof), People’s United will have full legal right and authority to issue and deliver the Optioned Shares as contemplated by this Agreement.