An issuer conducts a private placement under the USA limited offering exemption, selling to 8 individuals over a 10-month period. Two months later, the issuer sells to 4 additional individuals. Has the issuer violated the exemption conditions?

1. ANo, because each 10-month period is evaluated separately
2. BYes, because the total number of offerees in a 12-consecutive-month period likely exceeds the statutory limit✓ Correct answer
3. CNo, because the exemption has no numerical limit on purchasers
4. DYes, but only if the additional 4 purchasers are not institutional investors

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