fung_derf: Good catch. Sorry for the error. What I said applies to purchased stock not gifts. If you buy securities from a controlling person or "affiliate," you take restricted securities, even if they were not restricted in the affiliate's hands. Ref: <A HREF="http://www.sec.gov/investor/pubs/rule144.htm" target="_blank">http://www.sec.gov/investor/pubs/rule144.htm</A>