Common use of Nature of Restrictions Clause in Contracts

Nature of Restrictions. Shares which have not yet vested as set forth in Section 2 (the "Restricted Shares") shall not be sold, assigned, pledged, or otherwise transferred or encumbered, whether voluntarily, involuntarily, or by operation of law, except with the prior written approval of the Company and subject to the transferee's acceptance of the terms and conditions of this Agreement. Any attempt to sell, assign, pledge, transfer or encumber the Restricted Shares contrary to the provisions hereof, and any levy of any attachment or similar process upon the Restricted Shares, shall be null and void. The Company shall not recognize or give effect to any such transfers or encumbrances on its books and records nor recognize the person or persons to whom such purported transfer has been made as the legal or beneficial owner of the Restricted Shares.