The Virtual Shares represent a virtual equity stake in REDAVIA, based on the investment amount and the pre-money valuation of REDAVIA. If the company pays out dividends during the term, the holders of Virtual Shares will receive this cash on a pro rata basis, just like ordinary shareholders. In the event of a qualified exit event, the holders of Virtual Shares receive their investment back plus their share of the increase in REDAVIA’s equity value. In other words, the financial return on a Virtual Share is comparable to that of a regular share. As with regular shares, the return on the investment in a virtual share depends on the company’s value development and can be a multiple of the paid-in investment in the event of positive business development (upside scenario). In the event of a downside scenario, the Virtual Shares also participate in the losses of the company. In the worst case scenario, the Virtual Share may become worthless, as is the case with regular shares.