Common use of Restriction on Trading Clause in Contracts

Restriction on Trading. Each Subscriber hereby agrees that, during the ten (10) trading days immediately preceding any Conversion Date (as defined in the New Note) and the ten (10) trading days immediately following the issuance of Common Stock in respect of such conversion, it shall not, whether directly or indirectly: (i) buy or sell, or make or accept any offer to buy or sell, any shares of capital stock of the Company; or (ii) buy or sell, or make or accept any offer to buy or sell, any derivative security based on or relating to any capital stock of the Company (including without limitation options to buy or sell shares of capital stock of the Company). Each Subscriber hereby further agrees not to engage in any short sales of any shares of capital stock of the Company for so long as any of its shares of Preferred Stock remain issued and outstanding. No Subscriber shall be entitled to convert its Preferred Stock into Common Stock until ten (10) consecutive trading days have elapsed during which it has not engaged in any of the transactions prohibited by this Section 14.9.