Common use of Collateral Management Clause in Contracts

Collateral Management. If the AIF carries out OTC transactions, it may be exposed to risks in connection with the cre- ditworthiness of the OTC counterparties since, when it concludes forward contracts, options and swap transactions or uses other derivatives-based techniques, the AIF runs the risk of an OTC counterparty failing to meet its obligations under one or more contracts. This counterparty risk may be reduced if collateral is furnished. Where collateral is provided to the AIF under the ap- plicable legislation or the terms of a contract, it is held in safekeeping for the account of the AIF by or on behalf of the Depositary. Cases of insolvency or other credit default events affecting the Depositary or entities within its sub-depositary / correspondent bank network can result in the AIF's rights and entitlements in respect of the collateral being deferred or restricted in some other manner. Where the applicable legislation or the terms of a contract require the AIF to furnish the OTC counterparty with collateral, that collateral shall be transferred to the OTC coun- terparty as agreed between the AIF and the OTC counterparty. Cases of insolvency or other credit default events affecting the OTC counterparty, the Depositary or entities within its sub- depositary or correspondent bank network can result in the rights or the recognition of the AIF in respect of the collateral being delayed, restricted or even excluded, in which case the AIF would be compelled to meet its obligations under the OTC transaction without recourse to any collateral initially furnished to cover those obligations.

Collateral Management. If the AIF carries out OTC transactions, it may be exposed to risks in connection with the cre- ditworthiness creditworthiness of the OTC counterparties since, when it concludes forward contracts, options and swap transactions or uses other derivatives-based techniques, the AIF runs the risk of an OTC counterparty failing to meet its obligations under one or more contracts. This counterparty risk may be reduced if collateral is furnished. Where collateral is provided to the AIF under the ap- plicable applicable legislation or the terms of a contract, it is held in safekeeping for the account of the AIF by or on behalf of the Depositary. Cases of insolvency or other credit default events affecting the Depositary or entities within its sub-depositary custodian / correspondent bank network can result in the AIF's rights and entitlements in respect of the collateral being deferred or restricted in some other manner. Where the applicable legislation or the terms of a contract require the AIF to furnish the OTC counterparty with collateral, that collateral shall be transferred to the OTC coun- terparty counterparty as agreed between the AIF and the OTC counterparty. Cases of insolvency or other credit default events affecting the OTC counterparty, the Depositary or entities within its sub- depositary sub-custodian or correspondent bank network can result in the rights or the recognition of the AIF in respect of the collateral being delayed, restricted or even excluded, in which case the AIF would be compelled to meet its obligations under the OTC transaction without recourse to any collateral initially furnished to cover those obligations.

Collateral Management. If the AIF carries out OTC transactions, it may be exposed to risks in connection with the cre- ditworthiness creditworthiness of the OTC counterparties since, when it concludes forward contracts, options and swap transactions or uses other derivatives-based techniques, the AIF runs the risk of an OTC counterparty failing to meet its obligations under one or more contracts. This counterparty risk may be reduced if collateral is furnished. Where collateral is provided to the AIF under the ap- plicable applicable legislation or the terms of a contract, it is held in safekeeping for the account of the AIF by or on behalf of the Depositary. Cases of insolvency or other credit default events affecting the Depositary or entities within its sub-depositary / correspondent bank network can result in the AIF's rights and entitlements in respect of the collateral being deferred or restricted in some other manner. Where the applicable legislation or the terms of a contract require the AIF to furnish the OTC counterparty with collateral, that collateral shall be transferred to the OTC coun- terparty counterparty as agreed between the AIF and the OTC counterparty. Cases of insolvency or other credit default events affecting the OTC counterparty, the Depositary or entities within its sub- sub-depositary or correspondent bank network can result in the rights or the recognition of the AIF in respect of the collateral being delayed, restricted or even excluded, in which case the AIF would be compelled to meet its obligations under the OTC transaction without recourse to any collateral initially furnished to cover those obligations.