Common use of Compliance with Law and Regulation Clause in Contracts

Compliance with Law and Regulation. The Grantee acknowledges that this Option may not be exercised until the CSF has taken all action then required to comply with all applicable federal and state laws, rules and regulations and any exchange on which the Common Stock may then be listed. The certificates representing the shares purchased upon the exercise of this Option may bear a legend in substantially the following form: These shares have not been registered either under any applicable federal law and rules and resale will not be permitted under state law unless the shares are first registered, or are exempt, under the securities laws of California or any other applicable state securities laws. Further, no sale, offer to sell, or transfer of these shares shall be made unless a registration statement under the federal securities act of 1933, as amended, with respect to such shares is then in effect or an exemption from the registration requirements of such Act is then in fact applicable to such shares.