Common use of Controlling Shareholders Clause in Contracts

Controlling Shareholders. Upon the closing of the transaction contemplated by this Subscription Agreement, control of the majority of the outstanding shares of capital stock of the Company will remain concentrated amongst very few individuals. As a result of the beneficial ownership of a majority of the outstanding capital stock with a majority of the voting rights, these individuals will be in a position to control the outcome of all matters requiring a vote of the Company’s shareholders, including the election of directors.