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18.49. Conflicts Relating to Equity and Debt Ownership by the Investment Compartment and Other Clients of the Board of Directors

The Manager to which the management of an Investment Compartment’s portfolio has been assigned may at the same time also manage other clients’ accounts. The Investment Compartment’s portfolio managed by the Manager and the other clients’ accounts maintained by the Manager may at various times hold both debt and equity interests in issuers that are financially distressed or might become bankrupt. During negotiations among creditors or bankruptcy proceedings of such issuers, the Investment Compartment and such other clients may have competing claims for the remaining assets of such issuers.