Common use of Representations and Warranties of Optionee Clause in Contracts

Representations and Warranties of Optionee. The Optionee hereby represents and warrants to the Company as follows: (a) The Optionee has the legal right and capacity to enter into this Agreement and he fully understands the terms of this Agreement. (b) The Optionee will acquire the Option Shares, if the Option is exercised, for investment purposes only and not with a view to resale or other distribution thereof to the public in violation of the Securities Act of 1933 (the "Act"). (c) The Optionee will not, directly or indirectly, offer, sell, assign, transfer, pledge, hypothecate or otherwise dispose of in any way, this Option other than in accordance with the terms of this Agreement. (d) The Optionee acknowledges and agrees that the Option Shares, when issued and delivered to him pursuant to an exercise of this Option, will be "restricted" Shares, and may only be sold or otherwise transferred by him in accordance with the provisions of the Act.