Common use of Knowledge and Sophistication Clause in Contracts

Knowledge and Sophistication. (a) Purchaser has such knowledge and experience in finance, securities, investments and other business matters so as to be capable of evaluating the merits and risks of the investment contemplated hereby, and is able to bear the economic risk of such investment, and, at the present time, is able to afford a complete loss of such investment. (b) Purchaser acknowledges that the Shares have not been registered under the Act and the sale of the Shares is restricted by the Act, the Shareholders Agreement and the terms hereof.