Common use of COVERED FUNDS Clause in Contracts

COVERED FUNDS. 19.1 Employees and their Immediate Family Members can only retain their investment or re-invest in a Covered Fund sponsored by the Company if an employee was directly providing Qualifying Services to the Covered Fund at the time of investment. Generally, "Covered Funds" under the Xxxxxxx Rule fall into three categories: 19.1.1 Hedge funds, private equity funds and venture capital funds – these are funds that avoid mutual fund registration under Sections 3(c)(1) or 3(c)(7) of the U.S. Investment Company Act because they are offered privately (i.e. are not registered) and are either owned by qualified investors or by 100 or fewer accredited investors. 19.1.2 Foreign equivalent funds – these are funds organized and offered outside of the U.S. that would be the foreign equivalent of the above funds (i.e. not registered or publically offered). 19.1.3 Commodity pools – these are funds unregistered and exempt under U.S. Commodity Futures Trading Commission regulations.. 19.2 As an employee of the Company, if you did not provide Qualifying Services to a Covered Fund that the Company sponsored at the time of your investment, you will be required to liquidate any investment made by you or your Immediate Family Members in the Covered Fund. Once you become an employee of the Company, the list of the Company or Affiliate sponsored funds will be available on our internal website.