Company: CLM
Filing Date: 2025-04-08
Form Type: N-2/A
Source: 0001398344-25-006812
Chunk: 29

Company: Cornerstone Strategic Investment Fund, Inc.
Filing Date: 2025-04-08
Form: N-2/A
Chunk 29
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 acquires the New Shares.

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Employee Plan Considerations. Record
Date Stockholders that are employee benefit plans subject to the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
including corporate savings and 401(k) plans, Keogh Plans of self-employed individuals and Individual Retirement Accounts (“IRA”)
(each a “Benefit Plan” and collectively, “Benefit Plans”), should be aware that additional contributions of cash
in order to exercise Rights may be treated as Benefit Plan contributions and, when taken together with contributions previously made,
may subject a Benefit Plan to excise taxes for excess or nondeductible contributions. In the case of Benefit Plans qualified under Section
401(a) of the Code, additional cash contributions could cause the maximum contribution limitations of Section 415 of the Code or other
qualification rules to be violated. Benefit Plans contemplating making additional cash contributions to exercise Rights should consult
with their counsel prior to making such contributions.

Benefit Plans and other tax-exempt entities, including
governmental plans, should also be aware that if they borrow in order to finance their exercise of Rights, they may become subject to
the tax on unrelated business taxable income (“UBTI”) under Section 511 of the Code. If any portion of an IRA is used as
security for a loan, the portion so used is also treated as distributed to the IRA depositor.

ERISA contains prudence and diversification requirements
and ERISA and the Code contain prohibited transaction rules that may impact the exercise of Rights. Among the prohibited transaction
exemptions issued by the Department of Labor that may exempt a Benefit Plan’s exercise of Rights are Prohibited Transaction Exemption
84-24 (governing purchases of shares in investment companies) and Prohibited Transaction Exemption 75-1 (covering sales of securities).

Due to the complexity of these rules and the penalties
for noncompliance, Benefit Plans should consult with their counsel regarding the consequences of their exercise of Rights under ERISA
and the Code.

Benefit to the Investment Adviser.
The Investment Adviser will benefit from the Offering because its fees are based on the average total net assets of the Fund. It is not
possible to state precisely the amount of additional compensation the Investment Adviser will receive as a result of the Offering because
the proceeds of the Offering will be invested in additional portfolio securities that will fluctuate in value. However, based on the
Estimated Subscription Price of $6.47: (i) if all Rights