Common use of Securities Disclaimer Clause in Contracts

Securities Disclaimer. THE PARTIES UNDERSTAND AND AGREE THAT THE PROPOSED VENTURE IS A HIGHLY SPECULATIVE ONE AND THAT NO REPRESENTATIONS ARE MADE TO PARTICIPANT(S) AS TO THE SUCCESS OF THE VENTURE OR FINANCIAL GAIN. PARTICIPANT (NON-OPERATOR) REPRESENTS AND WARRANTS THAT THEY ARE A SOPHISTICATED OIL AND GAS INVESTOR. THE PARTIES AGREE AND UNDERSTAND THIS IS NOT A REGISTERED SECURITIES AGREEMENT.