Common use of Valid Issuance of Purchased Shares Clause in Contracts

Valid Issuance of Purchased Shares. The Purchased Shares, when issued, sold and delivered in accordance with the terms and for the consideration set forth in this Agreement, will be validly issued, fully paid and nonassessable and free of restrictions on transfer other than restrictions on transfer under this Agreement, applicable state and federal securities laws and liens or encumbrances created by or imposed by the Purchaser. Assuming the accuracy of the representations of the Purchaser in Section 3 of this Agreement and subject to the restrictions described in Section 3.4 below, the Purchased Shares will be issued in compliance with all applicable federal and state securities laws.