Common use of Limitation on Future Financing Clause in Contracts

Limitation on Future Financing. The Company agrees that it will not enter into any sale of its securities or any Capital Shares Equivalents at a discount to the then-current bid price until 180 days after the effective date of the Registration Statement, except for any sales (i) pursuant to the exercise of options granted or to be granted under an employee benefit plan, (ii) pursuant to any compensatory plan for a full-time employee or key consultant, (iii) in connection with a strategic partnership or other business transaction, the principal purpose of which is not simply to raise money, or (iv) pursuant to an equity line of credit in an amount not to exceed $2,000,000.