Common use of Short Positions Clause in Contracts

Short Positions. The Optionee agrees that, at any time the Optionee holds the Option, the Optionee shall not (i) directly or indirectly sell any equity security of the Company if the Optionee does not own the security sold, or if owning the security, does not deliver it against such sale within 20 days thereafter; or (ii) establish a derivative security position with respect to any equity security of the Company that increases in value as the value of the underlying equity decreases (including but not limited to a long put option and a short call option position) with securities underlying the position exceeding the underlying securities otherwise owned by the Optionee. In the event the Optionee violates this provision, the Company shall have the right to cancel the Option.