Common use of Covenants of the Subscriber Clause in Contracts

Covenants of the Subscriber. The Subscribers to the Offering, each for itself, covenant and agree with the Company that provided no Event of Default (as defined in the Note) has occurred, then until 180 days after the Effective Date (as defined in Section 10.1[iv] of this Agreement), each Subscriber will not, without prior approval by the Company, sell in open market transactions on any trading day an amount of Company Shares in excess of such Subscriber's Proportionate Share (as set forth on the signature page hereto) of 25%of the reported trading volume of the Company's Common Stock for such trading day. In the event a Subscriber does not sell its full Proportionate Share on the subsequent trading day, then the unsold portion may be sold thereafter on any trading day without regard to the limitation described in this Section 7.2.

Covenants of the Subscriber. The Subscribers to the Offering, each for itself, covenant and agree with the Company that provided no Event of Default (as defined in the Note) has occurred, then until 180 days after the Effective Date (as defined in Section 10.1[iv] of this Agreement), each Subscriber will not, without prior approval by the Company, sell in open market transactions on any trading day an amount of Company Shares in excess of such Subscriber's Proportionate Share (as set forth on the signature page hereto) of 25%of 20% of the reported trading volume of the Company's Common Stock for such trading day. In the event a Subscriber does not sell its full Proportionate Share the closing price of the Common Stock is $.30 or higher, then on the subsequent trading day, then each Subscriber may sell its Proportionate Share of 25% of the unsold portion may be sold thereafter reported traded volume of the Company's Common Stock on any such subsequent trading day without regard to the limitation described in this Section 7.2.day