Common use of Restriction on Shares Clause in Contracts

Restriction on Shares. The Corporation's obligation to issue or deliver any certificate or certificates for shares of Stock under this option, and the transferability of shares acquired by the exercise of this option, shall be subject to all of the following conditions: (a) Any registration or other qualification of such shares under any state or federal law or regulation, or the maintaining in effect of any such registration or other qualification which the Corporation shall, in its absolute discretion upon the advice of counsel, deem necessary or advisable. (b) The obtaining of any other consent, approval, or permit from any state or federal governmental agency which the Corporation shall, in its absolute discretion upon the advice of counsel, determine to be necessary or advisable; and (c) Each stock certificate issued pursuant to a Stock Option shall bear the following legend: "The transferability of this certificate and the shares of stock represented hereby are subject to restrictions, terms and conditions contained in an Agreement between the registered owner of such stock and Ariel Corporation. A copy of the Agreement is on file in the office of the Secretary of Ariel Corporation."