As subordinated investors, Virtual Shareholders bear higher risk than unsubordinated investors, such as senior lenders. This risk goes beyond the general risk of insolvency-related default: In the event of a cash shortage in the company, subordinated investors bear equity-like risk. This means: No payment claims of the investor can be enforced against REDAVIA if this would cause REDAVIA to open insolvency proceedings or if such cause for insolvency proceedings (for example: a cash shortage) already exists. The investor’s claims remain unenforceable for as long as and to the extent that the cash shortage of the issuer remains unresolved. If the company is liquidated, the subordination means that other creditors are repaid first and only then the subordinated “Virtual Share” investments.