Common use of Authorized Securities Clause in Contracts

Authorized Securities. Any [type of] securities of any public company that trades on any U.S. exchange including over the counter markets. Exchange traded funds (“ETF”) [or other commingled vehicles (either listed or unlisted) in order to gain market exposure]. American Depository Receipts or Shares (ADRs or ADSs) are allowed. Private placements including what are sometimes referred to as Rule 144A securities issued by public companies. Units in the Fund’s designated short-term investment fund. Foreign market and foreign exchange transactions are prohibited. Cash and equivalents shall not exceed 5% of the account value. No security or company exposure shall exceed ten percent (10%) of the total market value of all assets in the Sub-Account. No security or company exposure held across all accounts at the Investment Manager shall exceed 5% of the market float. The following transactions are prohibited: purchase of non-negotiable securities, short sales, buying or selling on margin, puts, calls, straddles, options, “letter” or restricted stock, private equity, swaps, commodities, and futures. Transactions between the Sub-Account and the Investment Manager or an affiliate of the Investment Manager acting as “principal” are prohibited.