Common use of Limitations on Resale Clause in Contracts

Limitations on Resale. The Shareholder agrees that he will not sell in the public market more than 50,000 of the Shares in any three month period and agrees that the certificates representing the Shares held by the Shareholder will be marked by a legend to prevent any sales in excess of this amount, provided that in the event that the Shareholder sells the Shares in a private transaction to a bona fide purchaser in compliance with the requirements of the Securities Act the purchaser acquiring such Shares will not be subject to the limitations provided for herein.