Common use of Leak Clause in Contracts

Leak. out Provision: For a period of twenty four (24) months from October 1, 2013, Holder shall not sell, transfer, assign, convey, donate, pledge, encumber, alienate, or in any way dispose of (collectively "Sell") any of the Shares or any portion, right or interest therein, except in compliance with the terms and conditions of the Agreement. Any purported or attempted transfer or assignment, whether voluntary or involuntary, of any Shares of the Company in violation of this Agreement shall be null and of no legal effect. Upon registration of the underlying Shares or upon compliance with, preparation, filing and clearing of appropriate documents required under Rule 144, on the first date of each month thereafter until the date of termination of this Agreement, Holder shall be permitted to sell the greater of (i) 20,000 shares per day or (i) that number of shares calculated by the total of 5% of the prior days trading volume (i.e., if the prior days trading volume is 300,000 shares, then the Holder shall be entitled to sell 15,000 shares on that day). Holder acknowledges that no sales may occur at a posted bid price on the stock.

Leak. out Provision: For a period of twenty twenty-four (24) months from October 1April 16, 20132016, Holder Executive shall not sell, transfer, assign, convey, donate, pledge, encumber, alienate, or in any way dispose of (collectively "Sell") any of the Shares or any portion, right or interest therein, except in compliance with the terms and conditions of the Agreement. Any purported or attempted transfer or assignment, whether voluntary or involuntary, of any Shares of the Company in violation of this Agreement shall be null and of no legal effect. Upon registration of the underlying Shares or upon compliance with, preparation, filing and clearing of appropriate documents required under Rule 144, on the first date of each month thereafter until the date of termination of this Agreement, Holder Executive shall be permitted to sell the greater of (i) 20,000 shares per day or (i) that number of shares calculated by the total of 5% of the prior days trading volume (i.e., if the prior days trading volume is 300,000 shares, then the Holder shall be entitled to sell 15,000 shares on that day). Holder Executive acknowledges that no sales may occur at a posted bid price on the stock.