Understanding the Investment Risks Sample Clauses
The "Understanding the Investment Risks" clause serves to inform and remind parties of the potential risks associated with making an investment. It typically outlines the types of risks involved, such as market volatility, potential loss of capital, or changes in regulatory environments, and may require the investor to acknowledge that they have reviewed and understood these risks. By clearly communicating the inherent uncertainties and dangers, this clause helps ensure that investors make informed decisions and protects the issuer from claims that risks were not adequately disclosed.
Understanding the Investment Risks. The Optionee understands that:
A. An investment in the Option Shares represents a highly speculative investment, and there can be no assurance as to the success of the Company in its business; and
B. There is at present no market for the Option Shares and there can be no assurance that a market will develop in the future.
Understanding the Investment Risks. Grantee understands that:
(i) An investment in the Profits Units represents a highly speculative investment, and there can be no assurance as to the success of Zuffa Parent in its business;
(ii) An investment in the Management Units in turn represents a highly speculative investment, and there can be no assurance as to the success of the Company in its business;
(iii) The Management Units cannot be Transferred except in very limited circumstances in accordance with the provisions of the Company LLC Agreement and at present no market for the Management Units exists, and it is not anticipated that a market for the Management Units will develop in the future;
(iv) The Management Units may be worthless;
(v) The Profits Units transferred to the Company may be worthless; and
(vi) Ownership of the Management Units may result in taxable income to Grantee without a corresponding cash or in-kind distribution.
Understanding the Investment Risks. The Member understands that:
(i) the LTIP Units represent a highly speculative investment, and there can be no assurance as to the success of OpCo, the Company or their respective Affiliates in their business;
(ii) the LTIP Units cannot be transferred except in very limited circumstances in accordance with the provisions of the Operating Agreement and the Award Agreement to which this Appendix A is attached (the “Award Agreement”), and at present, no market for the LTIP Units exists and it is not anticipated that a market for the LTIP Units will develop in the future;
(iii) the LTIP Units may be worthless; and
(iv) ownership of the LTIP Units may result in taxable income to the Member without a corresponding cash or in-kind distribution.
Understanding the Investment Risks. Grantee understands that: (i) an investment in Future Incentive Units represents a highly speculative investment, and there can be no assurance as to the success of Zuffa Parent in its business; (ii) an investment in Future Incentive Units in turn represents a highly speculative investment, and there can be no assurance as to the success of Zuffa Parent in its business; (iii) the Future Incentive Units are subject to restrictions on transfer that may significantly limit the ability of Grantee to market, transfer or sell the Future Incentive Units; (iv) the Future Incentive Units may be worthless; and (v) ownership of the Future Incentive Units may result in taxable income to Grantee without a corresponding cash or in-kind distribution.
Understanding the Investment Risks. Executive understands that:
A. An investment in the Restricted Stock represents a highly speculative investment, and there can be no assurance as to the success of the Parent or the Company in its business; and
B. There is at present no market for the Restricted Stock and there can be no assurance that a market will develop in the future.