Common use of Restrictions on Distribution Clause in Contracts

Restrictions on Distribution. The Lender understands that the Securities are characterized as "restricted securities" under the Securities Act inasmuch as they are being acquired from the Borrowers in a transaction not involving a public offering and that under the Securities Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain limited circumstances. Further, the Lender represents that the Lender is familiar with Rule 144 of the Commission, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. The Lender understands that Parent is under no obligation to register any of the securities sold hereunder except as provided in the Registration Rights Agreement.

Restrictions on Distribution. The Lender understands that the Securities are characterized as "restricted securities" under the Securities Act inasmuch as they are being acquired from the Borrowers in a transaction not involving involv ing a public offering and that under the Securities Act and applicable regulations thereunder such securities may be resold without registration under the Securities Act only in certain limited circumstances. Further, the Lender represents that the Lender is familiar with Rule 144 of the Commission, as presently in effect, and understands the resale limitations imposed thereby and by the Securities Act. The Lender understands that Parent is under no obligation to register any of the securities sold hereunder except as provided in the Registration Rights Agreement.