Common use of Cumulative Basis Clause in Contracts

Cumulative Basis. In the event that an “as-of” gain/loss amount, at the Series or class level, is equal to or exceeds the lesser value of $.005 per outstanding share or $5,000.00 on a cumulative net basis over an accumulation period, PFPC will notify GEAM and the Series’ accounting agent (“Fund Accounting”) immediately. At that time, PFPC will provide a detailed explanation of the transaction, or transactions, which caused the “as-of” amount to equal or exceed the lesser value of $.005 per outstanding share or the $5,000.00 threshold. PFPC will work closely with GEAM to identify and resolve the full gain/loss amount. If PFPC is responsible for any such material “as-of” loss on a cumulative net basis over the relevant accumulation period, PFPC will reimburse the full amount due to the Series. Such reimbursement will occur no later than one month from the date of the transaction. At the end of each accumulation period, any immaterial “as-of” cumulative gain/loss balance or any material “as-of” gains remaining on the books of the Series will not be the responsibility of PFPC. The cumulative tracking mechanism for “as-of” gains and losses will be reset to zero to begin the next accumulation period. Additionally, in cases where a material “as-of” loss has occurred on a cumulative net basis, PFPC may request that GEAM recalculate the impacted NAV(s) and allow PFPC to re-process the affected shareholder transactions as if the “as-of” trade(s) had been processed in a timely manner on the applicable trade date with the correct NAV. Individual account adjustments of less than or equal to an amount set by the Board are considered de minimis and will not be processed by PFPC. PFPC will utilize the procedures outlined below for “as-of” dividend accrual resulting from adjustments occurring within a month and “late dividends” resulting from “as-of” transactions crossing a Series’ ex-date.