BSD and OSD

[W. Yip]

I am having problems reconciling the BSD with the Open Source Definition
(OSD).

s.1 OSD requires 'free REdistribution'. 

"The license may not restrict any party from selling or giving away the
software as a component of an aggregate softrware distribution containing
program from several sources. The license may not require a royalty or
other fee for such sale"

I understand this to mean that the copyright holder can charge money for
the initial first license, but cannot do so for subsequent redistribution
made by his recipient.

But the BSD enables a licensee to ADD restrictions to redistribution,
INCLUDING a requirement of payment, does it not?

How then is the BSD an Open Source license?

Am I missing something here?

Thanks