THE NOTE AND THE SHARES. Lender acknowledges and agrees that the Note and any shares of the Borrower's Common Stock (par value $0.001) (the "Shares") acquired upon conversion of the Note or in payment of any accrued and unpaid interest thereon are "restricted securities" that have not been registered with the U.S. Securities and Exchange Commission or any state securities commission. Lender agrees that he is acquiring the Note and the Shares for investment purposes only and not with a view toward their resale or transfer. Lender agrees that Borrower shall have the right to impose a restricted securities legend upon any stock certificate issued to Lender in connection with the issuance of the Shares.
