Common use of Representative Shares Clause in Contracts

Representative Shares. The Company issued to designees of the Representative an aggregate of 57,500 shares of Common Stock (the “Representative Shares”) in a private placement intended to be exempt from registration under Section 4(a)(2) of the Act. The Representative Shares are described in the Registration Statement. The registered holders of the Representative Shares will not sell during the Offering, or sell, transfer, assign, pledge or hypothecate any of the Representative Shares for a period of 180 days pursuant to FINRA Conduct Rule 5110(g)(1) following the effective date of the Registration Statement except as permitted by FINRA Rule 5110(g)(2). Additionally, pursuant to FINRA Conduct Rule 5110(g), the Representative Shares will not be the subject of any hedging, short sale, derivative, put or call transaction that would result in the economic disposition of the securities by any person for a period of 180 days immediately following the effective date of the Registration Statement. The certificates for the Representative Shares contain legends to reflect the above FINRA and contractual transfer restrictions.