Company: SRV
Filing Date: 2025-03-10
Form Type: PRE 14A
Source: 0001398344-25-005333
Chunk: 24

Company: NXG Cushing Midstream Energy Fund
Filing Date: 2025-03-10
Form: PRE 14A
Chunk 24
---
 distributions from the Adviser to Mr. Swank pursuant to the Adviser Operating Agreement. When
the interest of NXG Cushing in the Adviser reaches 60%, NXG Cushing will automatically replace Swank Capital as the general partner of
the Adviser. Pursuant to the Adviser Ownership Plan, it is expected that eventually Mr. Swank will divest the entire Swank Ownership
Interest in the Adviser and NXG Cushing will hold 100% of the interests in the Adviser.

Section 15 of the 1940 Act,
provides that any investment advisory agreement must terminate automatically upon its “assignment.” As used in the 1940 Act,
the term “assignment” includes any direct or indirect transfer of a controlling block of outstanding voting securities of
an adviser. Such a transfer is often referred to as a “Change of Control Event.”

One or more of the transactions
contemplated by the Adviser Ownership Plan may be deemed a Change of Control Event. Whether or not a particular change in interest of
the Adviser as part of the Adviser Ownership Plan results in a Change of Control Event will depend on the facts and circumstances of such
transaction. Upon the occurrence of any such Change of Control Event, the investment advisory agreement for each Fund would automatically
terminate.

When the initial Change of Control
Event and any subsequent Change of Control Event will occur and when the divestment by Mr. Swank of the entire Swank Ownership Interest
will complete cannot be predicted at this time, as the reduction of the Swank Ownership Interest and corresponding increase in NXG Cushing’s
interest in the Adviser in any quarter will depend on the Adviser’s revenue in such quarter and the amount of any increased quarterly
revenue distribution from the Adviser to Mr. Swank.

The Proposal

To ensure that the existing advisory
services provided to the Funds can continue uninterrupted, shareholders are being asked to approve the New Advisory Agreement between
the Adviser and each Fund. The New Advisory Agreements would be effective upon the closing of the first Change of Control Event that may
occur after shareholder approval. As part of the same Proposal, shareholders also are being asked to approve, under certain circumstances,
any future investment advisory agreements if, as a result of future Change of Control Events that may occur in connection with the Adviser
Ownership Plan, the investment advisory agreements terminate. Shareholder approval will be deemed to apply to these future advisory agreements
only if: (1) no single person