Common use of RESTRICTION ON ISSUANCE OF SHARES; LEGENDS Clause in Contracts

RESTRICTION ON ISSUANCE OF SHARES; LEGENDS. The Company will not be obligated to sell any Option Shares hereunder unless the Option Shares are at the time exempt from registration under the Securities Act of 1933, as amended, and applicable state securities laws. Optionee shall make such investment representations to the Company and shall consent to the imposition of such legends on the stock certificates as are necessary, in the opinion of the Company's counsel, to secure to the Company an appropriate exemption from applicable securities laws. The Company shall give to Optionee such piggy-back registration rights as the Company and Optionee are able to agree upon in advance; provided, however, no such rights shall be given with respect to the initial Registration Statement on Form SB-2 that the Company proposes to file with the U.S. Securities and Exchange Commission.