Common use of Illiquidity Clause in Contracts

Illiquidity. The Stockholder understands that the Stockholder might never be able to liquidate the Stockholder’s investment in the Parent and that, although the Parent has undertaken to register under the Securities Act the Underlying Parent Shares pursuant to the Registration Rights Agreement, there can be no assurance that such registration will ever be effective or remain effective, or that there will be any liquidity with respect to the sale of the Underlying Parent Shares, if and when registered. The Stockholder represents that the Stockholder has sufficient liquid assets so that the illiquidity associated with the Stockholder’s investment will not cause any undue financial difficulties or affect the Stockholder’s ability to provide for the Stockholder’s current needs and possible financial contingencies, and that the Stockholder’s commitment to all high-risk investments (including the Stockholder’s investment in the Acquired Securities) is reasonable in relation to the Stockholder’s net worth, annual income, or both.

Appears in 2 contracts

Sources: Merger Agreement (CBD Energy LTD), Merger Agreement (Westinghouse Solar, Inc.)