COMPANY SALES TO AFFILIATES Sample Clauses

COMPANY SALES TO AFFILIATES. During the period of two years after the effective date of the Registration Statement, the Company will not issue any options, warrants, Common Stock, preferred stock, or other securities to any officer, director, principal shareholder of the Company, or affiliate of any such person, without the prior written consent of the Representative. The term "principal shareholder" shall mean a person who owns of record or beneficially more than 5% of the outstanding Common Stock of the Company. Also excepted from this provision shall be warrants and options, and Common Stock issued thereunder, which are described in the Registration Statement and are outstanding on the effective date of the Registration Statement or which are issued pursuant to a plan which has been approved in writing by the board of directors of the Company and the Representative. Such excluded securities shall be referred to herein as the "Excluded Securities."