Representations and Warranties of Frelas. In order to induce the Company to accept this Option Agreement, Frelas hereby represents and warrants to the Company as follows: a. Frelas has received no solicitation or general advertisement concerning the Company, but rather has become knowledgeable regarding the business of the Company through personal interaction with employees of the Company; b. Frelas confirms that no representations or warranties have been made to Frelas regarding the Company and that Frelas has not relied upon any representation or warranty in making or confirming this Option Agreement. c. Frelas has the ability to bear the economic investment, and can afford a complete loss of his investment, with respect to the Option and to the Shares. d. Frelas, either by himself or together with his purchaser representative, has sufficient knowledge and experience in financial and business matters so as to be capable of evaluating the merits and risks of his investment in the Option and in the Shares. e. Frelas is accepting the Option, and will be purchasing the Shares, for investment purposes, for Frelas's own account and not with a view to, or for sale in connection with, the distribution thereof. f. Frelas is familiar with the nature of, and the risks attending, investments in securities such as the Option and the Shares, and he has determined that the acceptance of the Option and the purchase of the Shares is and will be consistent with his investment objectives. g. Frelas has been advised and understands that an investment in the Option and in the Shares is speculative and involves a high degree of risk. h. Frelas has no reason to anticipate any change in his personal circumstances, financial or otherwise, which may cause or require sale or distribution by him of all or any part of the Option or the Shares. i. Frelas confirms that he has been given an opportunity to make any inquiries of the Company and its representatives that he desires to make. j. Fxxxxx xx at least twenty-one (21) years of age. k. Frelas is aware of and understands the following: i. The business of the Company and the risks inherent in that business; ii. That no federal or state agency has made a finding or determination as to the advisability or fairness of an investment in the Option or in the Shares or any recommendation or endorsement of the Option or of the Shares; iii. That the Option and the Shares have not been registered for sale under the Securities Act of 1933, as amended, or under any state "Blue Sky Law"...
