Common use of Limit Violations Clause in Contracts

Limit Violations. From the date hereof through December 31, 2012, the Buyer shall not (a) amend Article V, Section 4 of its articles of incorporation to reduce the maximum permitted ownership limit regarding the ownership of Buyer Common Stock (the “Ownership Limit”) below the current 9.9% limit or (b) repurchase, redeem or acquire shares of Buyer Common Stock if the result thereof would cause or be reasonably expected to cause Sellers to beneficially own more than 9.85% of the issued and outstanding Buyer Common Stock (a “Limit Violation”), taking into account for this purpose, all Buyer Common Stock issued or to be issued to Sellers pursuant to this Agreement. No Seller or any Affiliate of a Seller, will, directly or indirectly, acquire beneficial ownership of any Buyer Common Stock other than pursuant to the terms of this Agreement. The provisions of this Section 12.5 will cease to be of any effect in the event that prior to December 31, 2012, the Buyer amends it articles of incorporation to either (x) eliminate the Ownership Limit or (y) make any Ownership Limit inapplicable to Sellers and all Affiliates of Sellers.