Common use of Restriction on Transfer of Option Shares Clause in Contracts

Restriction on Transfer of Option Shares. Unless the Common Stock is publicly traded, there will be no market for the Option Shares and the Option Shares will be subject to restrictions on transfer imposed by law, the Plan and this Agreement, as well as an Investors Rights Agreement and a Right of First Refusal and Co-Sale Agreement to which Optionee will be obligated to become a party upon exercise of the Option. By signing this Agreement, Optionee represents that any purchase of Option Shares upon exercise of an Option, prior to the Common Stock becoming publicly traded, will be for investment purposes without an intention to resell the Option Shares for a substantial period of time. No transfer of Option Shares will be recognized by the Company, unless in the opinion of counsel to the Company such transfer will not result in a violation of applicable securities laws.