Common use of Insider Limitation Clause in Contracts

Insider Limitation. The Optionee acknowledges that pursuant to the Plan, the number of common shares issued to insiders (as that term is defined in the Plan), within any one year period, under the Plan and all other security based compensation arrangements of the Company, cannot exceed 10% of the Company’s issued and outstanding common shares (the “10% limit”). The Optionee accepts and agrees to this limitation, and agrees that in the event the 10% limit is reached 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, at any time during the following year, if at such time the Optionee is an insider of the Company.