Common use of Shares Fully Paid; Reservation of Shares Clause in Contracts

Shares Fully Paid; Reservation of Shares. All Shares which may be issued upon the exercise of the Stock Option shall, upon issuance, be duly authorized, validly issued, fully paid and non-assessable, and free of any liens and encumbrances except for restrictions on transfer provided for herein or under applicable securities laws. During the period within which the purchase right represented by the Stock Option may be exercised, the Company shall at all times have authorized, and reserved for the purpose of the issue upon exercise of the purchase right represented by the Stock Option, a sufficient number of Shares to provide for the exercise of the purchase right represented by the Stock Option.