Common use of Suitability and Sophistication Clause in Contracts

Suitability and Sophistication. Purchaser represents and warrants that it (a) is an "accredited investor" as defined in Rule 501(a) promulgated under the Securities Act, (b) has such knowledge and experience in financial and business matters that it is capable of independently evaluating the risks and merits of purchasing the Option and the Option Shares, (c) has been provided with the opportunity to make a reasonable investigation of Seller, including the opportunity to make any inquiries and to request additional information necessary to its investment decision, and Seller has satisfactorily responded to any inquiries and furnished to Purchaser all requested information, (d) has independently evaluated the risks and merits of purchasing the Option and the Option Shares and has independently determined that the Option Shares are a suitable investment for it, and (e) has sufficient financial resources to bear the loss of its entire investment in the Option and the Option Shares.