Common use of Rights Not Applicable Clause in Contracts

Rights Not Applicable. Notwithstanding the provisions of Section 7.1, --------------------- the right of any Registrable Securities Holder to participate in a registration as provided for in such section shall not exist under the following circumstances: (a) If at the time Company would otherwise be required to give the notice to Registrable Securities Holders under Section 7.1(a), any Registrable Securities Holder is then a holder of Underlying Shares which have been acquired pursuant to exercise of the Option, and if such Registrable Securities Holder is then permitted to sell or transfer the Underlying Shares under Rule 144 of the Securities and Exchange Commission, then as to such shares only, the registration rights provided for in Section 7.1 shall not apply. (b) The right of Registrable Securities Holders to participate in a registration as provided for in Section 7.1 shall expire one (1) year following the period in which this Option can be exercised, as specified in Section 1.4.