# EDGAR Filing Document

**Accession Number:** 0000826020
**File Stem:** 0001999371-25-013586
**Filing Date:** 2025-9
**Character Count:** 1405138
**Document Hash:** 4ba687f48b06b3e3105ac2800f47bfd0
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0001999371-25-013586.hdr.sgml**: 20250919

**ACCESSION NUMBER**: 0001999371-25-013586

**CONFORMED SUBMISSION TYPE**: N-2/A

**PUBLIC DOCUMENT COUNT**: 57

**FILED AS OF DATE**: 20250919

**DATE AS OF CHANGE**: 20250918

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Saba Capital Income & Opportunities Fund
- **CENTRAL INDEX KEY:** 0000826020

**ORGANIZATION NAME:**
- **EIN:** 956874587
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1030

**FILING VALUES:**
- **FORM TYPE:** N-2/A
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-05410
- **FILM NUMBER:** 251324685

**BUSINESS ADDRESS:**
- **STREET 1:** 405 LEXINGTON AVENUE
- **STREET 2:** 58TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10174
- **BUSINESS PHONE:** 212-542-3610

**MAIL ADDRESS:**
- **STREET 1:** 405 LEXINGTON AVENUE, 58TH FLOOR
- **STREET 2:** C/O SABA CAPITAL MANAGEMENT, L.P.
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10174

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Voya PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 20140421

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ING PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 20020205

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PILGRIM AMERICA PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 19960518
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** Saba Capital Income & Opportunities Fund
- **CENTRAL INDEX KEY:** 0000826020

**ORGANIZATION NAME:**
- **EIN:** 956874587
- **STATE OF INCORPORATION:** MA
- **FISCAL YEAR END:** 1030

**FILING VALUES:**
- **FORM TYPE:** N-2/A
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 333-288532
- **FILM NUMBER:** 251324684

**BUSINESS ADDRESS:**
- **STREET 1:** 405 LEXINGTON AVENUE
- **STREET 2:** 58TH FLOOR
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10174
- **BUSINESS PHONE:** 212-542-3610

**MAIL ADDRESS:**
- **STREET 1:** 405 LEXINGTON AVENUE, 58TH FLOOR
- **STREET 2:** C/O SABA CAPITAL MANAGEMENT, L.P.
- **CITY:** NEW YORK
- **STATE:** NY
- **ZIP:** 10174

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** Voya PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 20140421

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** ING PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 20020205

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PILGRIM AMERICA PRIME RATE TRUST
- **DATE OF NAME CHANGE:** 19960518

?xml version='1.0' encoding='ASCII'?

**As filed with the Securities and Exchange Commission on September 18, 2025**

**Securities Act File No. 333-288532**

**Investment Company Act File No. 811-05410**

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM N-2**

**Registration Statement**

***under***

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***the Securities Act of 1933*** | ☒ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Pre-Effective Amendment No. 1** | ☒ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Post-Effective Amendment No.** | ☐ |

---

**and/or**

**Registration Statement**

***under***

---

| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;***the Investment Company Act of 1940*** | ☒ |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Amendment No. 1** | ☒ |

---

**Saba Capital Income & Opportunities Fund**

**(Exact Name of Registrant as Specified In Charter)**

**405 Lexington Avenue, 58th Floor**

**New York, New York 10174**

(Address of Principal Executive Offices)

Registrant's Telephone Number, including Area Code: **(212) 542-4644**

**Michael D'Angelo**

**Saba Capital Income & Opportunities Fund**

**405 Lexington Avenue**

**New York, New York 10174**

(Name and Address of Agent For Service)

*Copies of information to:*

 ****

**George Silfen**

**Alston & Bird LLP**

**90 Park Avenue**

**New York, New York 10016**

**Approximate Date of Commencement of Proposed Public Offering:** From time to time after the effective date of this Registration Statement.

If the only securities being registered on this Form are being offered pursuant to dividend or interest reinvestment plans, check the following box ☐

If any securities being registered on this Form will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933 ("Securities Act"), other than securities offered in connection with a dividend reinvestment plan, check the following box ☒

If this Form is a registration statement pursuant to General Instruction A.2 or a post-effective amendment thereto, check the following box ☒

If this Form is a registration statement pursuant to General Instruction B or a post-effective amendment thereto that will become effective upon filing with the Commission pursuant to Rule 462(e) under the Securities Act, check the following box ☐

If this Form is a post-effective amendment to a registration statement filed pursuant to General Instruction B to register additional securities or additional classes of securities pursuant to Rule 413(b) under the Securities Act, check the following box ☐

It is proposed that this filing will become effective (check appropriate box):

☐ when declared effective pursuant to Section 8(c) of the Securities Act

If appropriate, check the following box:

☐ This [post-effective] amendment designates a new effective date for a previously filed [post-effective amendment] [registration statement].

☐ This Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, and the Securities Act registration statement number of the earlier effective registration statement for the same offering is: .

☐ This Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, and the Securities Act registration statement number of the earlier effective registration statement for the same offering is: .

☐ This Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, and the Securities Act registration statement number of the earlier effective registration statement for the same offering is: .

Check each box that appropriately characterizes the Registrant:

☒ Registered Closed-End Fund (closed-end company
 that is registered under the Investment Company Act of 1940 (the "Investment Company Act")).

☐ Business Development Company (closed-end company that intends or has elected to be regulated as a business development company under the Investment Company Act).

☐ Interval Fund (Registered Closed-End Fund or a Business Development Company that makes periodic repurchase offers under Rule 23c-3 under the Investment Company Act).

☒ A.2 Qualified (qualified
 to register securities pursuant to General Instruction A.2 of this Form).

☐ Well-Known Seasoned Issuer (as defined by Rule 405 under the Securities Act).

☐ Emerging Growth Company (as defined by Rule 12b-2 under the Securities and Exchange Act of 1934).

☐ If an Emerging Growth Company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 7(a)(2)(B) of the Securities Act.

☐ New Registrant (registered or regulated under the Investment Company Act for less than 12 calendar months preceding this filing).

THE REGISTRANT HEREBY AMENDS THIS REGISTRATION STATEMENT ON SUCH DATE OR DATES AS MAY BE NECESSARY TO DELAY ITS EFFECTIVE DATE UNTIL THE REGISTRANT SHALL FILE A FURTHER AMENDMENT WHICH SPECIFICALLY STATES THAT THIS REGISTRATION STATEMENT SHALL THEREAFTER BECOME EFFECTIVE IN ACCORDANCE WITH SECTION 8(a) OF THE SECURITIES ACT OF 1933 OR UNTIL THE REGISTRATION STATEMENT SHALL BECOME EFFECTIVE ON SUCH DATE AS THE SECURITIES AND EXCHANGE COMMISSION, ACTING PURSUANT TO SAID SECTION 8(a), MAY DETERMINE.

The information in this Preliminary Prospectus is not complete and may be changed. Saba Capital Income & Opportunities Fund may not sell these securities until the registration statement filed with the Securities and Exchange Commission is effective. This Preliminary Prospectus is not an offer to sell these securities and it is not soliciting an offer to buy these securities in any jurisdiction where the offer or sale is not permitted.

SUBJECT TO COMPLETION, DATED SEPTEMBER 18, 2025

![](sabab2a001.jpg)

**<u>PRELIMINARY BASE PROSPECTUS</u>**

**15,000,000 Shares**

**Saba Capital Income & Opportunities Fund**

**Shares of Beneficial Interest**

**Rights to Purchase Shares of Beneficial Interest**

Saba Capital Income & Opportunities Fund (the "Fund," "we," "us" or "our") is a non-diversified, closed-end management investment company. The Fund's primary investment objective is to seek to provide shareholders with a high level of current income, with a secondary goal of capital appreciation.

We may offer, from time to time, in one or more offerings, our common shares of beneficial interest, without par value ("common shares"), or subscription rights to purchase our common shares. Common shares may be offered at prices and on terms to be set forth in one or more supplements to this Prospectus (each, a "Prospectus Supplement"). You should read this Prospectus and the applicable Prospectus Supplement carefully before you invest in our common shares.

Our common shares may be offered directly to one or more purchasers, including existing shareholders in a rights offering, through agents designated from time to time by us, or to or through underwriters or dealers. The Prospectus Supplement relating to the offering will identify any agents or underwriters involved in the sale of our common shares, and will set forth any applicable purchase price, fee, commission or discount arrangement between us and our agents or underwriters, or among our underwriters, or the basis upon which such amount may be calculated. The Prospectus Supplement relating to any offering of rights will set forth the number of common shares issuable upon the exercise of each right (or number of rights) and the other terms of such rights offering. We may not sell any of our common shares through agents, underwriters or dealers without delivery of a Prospectus Supplement describing the method and terms of the particular offering of our common shares.

Our common shares are listed on the New York Stock Exchange ("NYSE") under the symbol "BRW." The last reported sale price of our common shares, as reported by the NYSE on September 15, 2025 was $8.05 per common share. The net asset value of our common shares at the close of business on April 30, 2025 was $8.10 per common share. Rights issued by the Fund may also be listed on a securities exchange.

**Investing in the Fund's common shares involves certain risks that are described in the "Risks" section beginning on page 37 of this Prospectus.**

**Shares of closed-end management investment companies frequently trade at a discount to their net asset value. The Fund's common shares have traded at a discount to net asset value, including during recent periods. If the Fund's common shares trade at a discount to their net asset value, the risk of loss may increase for purchasers in a public offering.**

**The Fund may invest in private funds. Investments in private funds are subject to special risk considerations, including reduced regulatory oversight, limited liquidity, valuation uncertainty, delayed reporting, and additional fees and expenses, all of which may adversely affect the Fund's performance.**

**Neither the Securities and Exchange Commission ("SEC") nor any state securities commission has approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.**

This Prospectus is part of a registration statement that we have filed with the SEC using the "shelf" registration process. Under the shelf registration process, we may offer, from time to time, separately or together in one or more offerings, the securities described in this Prospectus. The securities may be offered at prices and on terms described in one or more supplements to this Prospectus. This Prospectus provides you with a general description of the securities that we may offer. Each time we use this Prospectus to offer securities, we will provide a Prospectus Supplement that will contain specific information about the terms of that offering. The Prospectus Supplement may also add, update or change information contained in this Prospectus. This Prospectus, together with any Prospectus Supplement, sets forth concisely the information about the Fund that a prospective investor should know before investing. You should read this Prospectus and applicable Prospectus Supplement, which contain important information, before deciding whether to invest in the common shares. You should retain the Prospectus and Prospectus Supplement for future reference. A Statement of Additional Information ("SAI"), dated [●], 2025, containing additional information about the Fund, has been filed with the SEC and, as amended from time to time, is incorporated by reference in its entirety into this Prospectus. You may call (212) 542-4644, visit the Fund's website (https://www.sabacef.com/saba-income-opportunities-fund) or write to the Fund to obtain, free of charge, copies of the SAI and the Fund's semi-annual and annual reports, as well as to obtain other information about the Fund or to make shareholder inquiries. The SAI, as well as the Fund's semi-annual and annual reports, are also available for free on the SEC's website (http://www.sec.gov). You may also e-mail requests for these documents to publicinfo@sec.gov. Information contained in, or that can be accessed through, the Fund's website is not part of this Prospectus.

You should not construe the contents of this Prospectus as legal, tax or financial advice. You should consult with your own professional advisors as to the legal, tax, financial or other matters relevant to the suitability of an investment in the Fund.

**The Fund's common shares do not represent a deposit or an obligation of, and are not guaranteed or endorsed by, any bank or other insured depository institution, and are not federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board or any other government agency.**

Prospectus dated [●], 2025

**TABLE OF CONTENTS**

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| | |
|:---|:---|
|  | Page |
| [PROSPECTUS SUMMARY](#sabab2aa001) | 1 |
| [SUMMARY OF FUND EXPENSES](#sabab2aa002) | 13 |
| [FINANCIAL HIGHLIGHTS](#sabab2aa003) | 14 |
| [USE OF PROCEEDS](#sabab2aa004) | 18 |
| [THE FUND](#sabab2aa005) | 18 |
| [DESCRIPTION OF SHARES](#sabab2aa006) | 18 |
| [THE FUND'S INVESTMENTS](#sabab2aa007) | 20 |
| [LEVERAGE](#sabab2aa008) | 34 |
| [RISKS](#sabab2aa009) | 37 |
| [MANAGEMENT OF THE FUND](#sabab2aa010) | 72 |
| [NET ASSET VALUE](#sabab2aa011) | 74 |
| [DISTRIBUTIONS](#sabab2aa012) | 76 |
| [REINVESTMENT PROGRAM](#sabab2aa013) | 77 |
| [RIGHTS OFFERINGS](#sabab2aa014) | 78 |
| [TAX MATTERS](#sabab2aa015) | 79 |
| [TAXATION OF HOLDERS OF RIGHTS](#sabab2aa016) | 86 |
| [CLOSED-END FUND STRUCTURE](#sabab2aa017) | 87 |
| [REPURCHASE OF COMMON SHARES](#sabab2aa018) | 88 |
| [PLAN OF DISTRIBUTION](#sabab2aa019) | 88 |
| [INCORPORATION BY REFERENCE](#sabab2aa020) | 89 |
| [PRIVACY NOTICE OF THE FUND](#sabab2aa021) | 90 |

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**You should rely only on the information contained in, or incorporated by reference into, this Prospectus and any related Prospectus Supplement in making your investment decisions. The Fund has not authorized any person to provide you with different information. If anyone provides you with different or inconsistent information, you should not rely on it. The Fund is not making an offer to sell the common shares in any jurisdiction where the offer or sale is not permitted. You should assume that the information in this Prospectus and any Prospectus Supplement is accurate only as of the dates on their covers. The Fund's business, financial condition and prospects may have changed since the date of its description in this Prospectus or the date of its description in any Prospectus Supplement.**

**PROSPECTUS SUMMARY**

*This is only a summary of certain information relating to Saba Capital Income & Opportunities Fund. This summary may not contain all of the information that you should consider before investing in our common shares. You should consider the more detailed information contained in the Prospectus and in any related Prospectus Supplement and in the Statement of Additional Information ("SAI") before purchasing common shares.*

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|:---|:---|
| **The Fund** | &nbsp;&nbsp;Saba Capital Income & Opportunities Fund is a non-diversified, closed-end management investment company. Throughout this Prospectus, we refer to Saba Capital Income & Opportunities Fund simply as the "Fund" or as "we," "us" or "our." See "The Fund."<br>The Fund's common shares are listed for trading on the New York Stock Exchange ("NYSE") under the symbol "BRW." As of April 30, 2025, the net assets of the Fund were $344,306,121, the total assets of the Fund were $693,784,785, and the Fund had 42,529,493 common shares outstanding. The last reported sale price of the Fund's common shares, as reported by the NYSE on September 15, 2025 was $8.05 per common share. The net asset value ("NAV") of the Fund's common shares at the close of business on April 30, 2025 was $8.10 per common share. See "Description of Shares." Rights issued by the Fund may also be listed on a securities exchange.<br>|
| **The Offering** | &nbsp;&nbsp;We may offer, from time to time, in one or more offerings, up to 15,000,000 of our common shares on terms to be determined at the time of the offering. We may also offer subscription rights to purchase our common shares. The common shares may be offered at prices and on terms to be set forth in one or more Prospectus Supplements. You should read this Prospectus and the applicable Prospectus Supplement carefully before you invest in our common shares. Our common shares may be offered directly to one or more purchasers, through agents designated from time to time by us, or to or through underwriters or dealers. The offering price per common share will not be less than the NAV per common share at the time we make the offering, exclusive of any underwriting commissions or discounts, provided that rights offerings that meet certain conditions may be offered at a price below the then current NAV. See "Rights Offerings." The Prospectus Supplement relating to the offering will identify any agents, underwriters or dealers involved in the sale of our common shares, and will set forth any applicable purchase price, fee, commission or discount arrangement between us and our agents or underwriters, or among our underwriters, or the basis upon which such amount may be calculated. See "Plan of Distribution." The Prospectus Supplement relating to any offering of rights will set forth the number of common shares issuable upon the exercise of each right (or number of rights) and the other terms of such rights offering. We may not sell any of our common shares through agents, underwriters or dealers without delivery of a Prospectus Supplement describing the method and terms of the particular offering of our common shares. |

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|:---|:---|
| **Use of Proceeds** | &nbsp;&nbsp;The net proceeds from the issuance of common shares hereunder will be invested in accordance with our investment objectives and policies as appropriate investment opportunities are identified, which is expected to be substantially completed in approximately two months from the date on which the proceeds from an offering are received by the Fund; however, the identification of appropriate investment opportunities pursuant to the Fund's investment style or changes in market conditions could result in the Fund's anticipated investment period extending to as long as four months. See "Use of Proceeds." |

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● **Closed-end funds**: The Fund invests in closed-end funds that pursue a variety of strategies, including, but not limited to, closed-end funds that invest in dividend and other income-producing securities (e.g., equity securities) and closed-end funds that invest in debt and loans, including high yield or noninvestment grade securities (commonly referred to as "junk bonds"). The closed-ends funds have the flexibility to invest in a broad range of securities. The Fund may also invest in closed-ends funds that are, or the Adviser (defined below) believes may become, the subject of an activist campaign by a shareholder, such as a proxy contest, whose aim is to eliminate or reduce the discount to the closed-end fund's NAV.

● **Special purpose acquisition companies ("SPACs")**: A SPAC is typically a publicly traded company that raises investment capital via an IPO for the purpose of acquiring one or more existing companies (or interests therein) via merger, combination, acquisition or other similar transactions.

● **Public and private debt instruments**: The Fund may invest in a wide array of debt investments including: corporate bonds, private credit, senior loans, convertible securities, asset-backed securities, collateralized loan obligations, high-yield securities, mortgage related derivative instruments, other mortgage related securities, U.S. government debt securities, preferred securities, municipal securities, distressed and defaulted securities, credit default swaps, structured instruments, sovereign governmental and supranational debt, event-linked instruments/catastrophe bonds, and reinsurance notes. These investments may be issued by public or private issuers.

● **Reinsurance**: The Fund may invest, directly or indirectly, in reinsurance contracts through shares or notes issued in connection with quota shares and/or may gain exposure to reinsurance contracts through excess of loss notes and/or industry loss warranties.

● **Public and Private Equity Securities**: The Fund may invest in equity securities, including common stocks, warrants, real estate investment trusts ("REITs"), depositary receipts, and listed and unlisted private equity funds or other private funds.

● **Other Investment Companies**: In addition to closed-end funds, the Fund may invest in securities of other investment companies (including exchange-traded funds, business development companies and money market funds, including other investment companies managed by the Adviser or its affiliates), subject to applicable regulatory limits, that invest primarily securities of the types in which the Fund may invest directly.

● **Private Funds**: The Fund may invest in private funds that pursue private credit, real estate, reinsurance, fixed income or equity strategies.

● **Derivatives**: The Fund may also invest in derivatives, such as swaps, options or other instruments seeking indirect investment or exposures to any of the foregoing investments to enhance returns or for hedging or other purposes.

● Yield and maturity

● Call features and other features of the instrument

● Credit quality

● Value relative to other investment opportunities

● Other factors pertaining to the issuer or the instrument that could bear on the income or total return potential of the investment

● Expected income/return potential of the security/ instrument

● An assessment of the investment's perceived intrinsic value (vs. its market value)

● Opportunities to increase value through participating in an activist campaign

● Value relative to other investment opportunities

● Other factors pertaining to the issuer or the securities that could bear on the income or return potential of the investment

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|:---|:---|
| **Leverage** | &nbsp;&nbsp;The Fund uses leverage to seek to achieve its investment objectives. The Fund's use of leverage may increase or decrease from time to time in its discretion and the Fund may, in the future, determine not to use leverage. The Fund currently leverages its assets through direct borrowing under its Facility with TD Bank and the use of derivative instruments (such as options and swaps), which are inherently leveraged and trading in products with embedded leverage, such as short sales and forwards. The Fund may borrow money from banks or other financial institutions or issue debt securities or preferred shares, if it believes that market conditions would be conducive to the successful implementation of a leveraging strategy through borrowing money or issuing debt securities or preferred shares. "Managed Assets" means the Fund's average daily gross asset value, minus the sum of the Fund's accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Fund and the liquidation preference of any outstanding preferred shares). See "Leverage" and "Risks—Leverage Risks." |

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&nbsp;&nbsp; The use of leverage is subject to numerous risks. When leverage is employed, the Fund's NAV, the market price of the common shares and the yield to holders of common shares will be more volatile than if leverage were not used. For example, a rise in short-term interest rates generally will cause the Fund's NAV to decline more than if the Fund had not used leverage. A reduction in the Fund's NAV may cause a reduction in the market price of the Fund's common shares. When the Fund uses leverage, the management fee payable to the Adviser (as defined below) will be higher than if the Fund did not use leverage.<br>

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|:---|:---|
|  | &nbsp;&nbsp;The Fund cannot assure you that the use of leverage will result in a higher yield on the Fund's common shares. Any leveraging strategy the Fund employs may not be successful. |
| **Investment Adviser** | &nbsp;&nbsp;Saba Capital Management, L.P. is the Fund's investment adviser. The Adviser receives an annual fee, payable monthly, in an amount equal to 1.05% of the average daily value of the Fund's Managed Assets. See "Management of the Fund-Investment Adviser." |
| **Distributions** | &nbsp;&nbsp;The Fund has, with the approval of the Board of Trustees (the "Board"), adopted a managed distribution plan (the "Managed Distribution Plan") pursuant to which the Fund will make monthly distributions to shareholders at a fixed amount of $0.085 per share. The fixed distribution amount excludes any special dividends, which are not paid pursuant to the Managed Distribution Plan. Under the Managed Distribution Plan, the Fund will generally distribute amounts to its shareholders as necessary to satisfy the Managed Distribution Plan and the requirements prescribed by excise tax rules and Subchapter M of the Internal Revenue Code of 1986, as amended (the "Code"). The Managed Distribution Plan is intended to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month and is intended to narrow the discount between the market price and the NAV of the Fund's common shares, but there is no assurance that the Managed Distribution Plan will be successful in doing so. Shareholders should not draw any conclusions about the Fund's investment performance from the amount of these distributions or from the terms of the Managed Distribution Plan.<br>Under the Managed Distribution Plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will distribute capital gains and/or return of capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income".<br>Various factors will affect the level of the Fund's income, including the asset mix and the Fund's use of options and hedging. To permit the Fund to maintain a more stable monthly distribution, the Fund may from time to time distribute less than the fixed distribution amount. The undistributed income would be available to supplement future distributions. As a result, the distributions paid by the Fund for any particular monthly period may be more or less than fixed distribution amount. Undistributed income will add to the Fund's NAV (and indirectly benefits the Adviser by increasing its fee) and, correspondingly, distributions from undistributed income will reduce the Fund's NAV. The Fund generally intends to distribute any long-term capital gains not distributed under the Managed Distribution Plan annually, but is not obligated to do so. As a regulated investment company ("RIC"), the Fund is required to distribute 90% of the "investment company taxable income" for the taxable year, but this amount is determined without regard to capital gain dividends. See Section 852(a)(1) of the Code. However, the Fund would still be taxed on any undistributed income and gains, including the retained capital gain dividends.<br>Under normal market conditions, the Adviser seeks to manage the Fund in a manner such that the Fund's distributions are reflective of the Fund's current and projected earnings levels. The distribution level of the Fund is subject to change based upon a number of factors, including the current and projected level of the Fund's earnings, and may fluctuate over time. |

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|:---|:---|
|  | &nbsp;&nbsp; The Board may amend, suspend or terminate the Distribution Plan at any time without prior notice to the Fund's shareholders if it deems such actions to be in the best interests of the Fund or its shareholders. An amendment or termination of the Managed Distribution Plan could have an adverse effect on the market price of the Fund's common shares. The Managed Distribution Plan will be subject to periodic review by the Board, including a yearly review of the annual minimum fixed rate to determine if an adjustment should be made. See "Distributions."<br>Shareholders may elect to have all dividends and distributions reinvested in common shares of the Fund in accordance with the Fund's shareholder reinvestment program (the "Reinvestment Program"). See "Reinvestment Program."<br>|
| **Listing** | &nbsp;&nbsp;The Fund's common shares are listed on the NYSE under the symbol "BRW." See "Description of Shares-Common Shares." |
| **Accountant, Administrator, and Transfer Agent** | &nbsp;&nbsp;ALPS Fund Services, Inc. ("SS&C ALPS") serves as the Fund's accountant, administrator, and transfer agent. |
| **Custodian** | &nbsp;&nbsp;The Bank of New York Mellon serves as the Fund's custodian. |

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|:---|:---|
| **Market Price of Shares** | &nbsp;&nbsp;Common shares of closed-end investment companies frequently trade at prices lower than their NAV. The Fund cannot assure you that its common shares will trade at a price higher than or equal to NAV. See "Use of Proceeds." The Fund's common shares trade in the open market at market prices that are a function of several factors, including dividend levels (which are in turn affected by expenses), NAV, call protection for portfolio securities, portfolio credit quality, liquidity, dividend stability, relative demand for and supply of the common shares in the market, general market and economic conditions and other factors. See "Leverage," "Risks," "Description of Shares" and "Repurchase of Common Shares." The common shares are designed primarily for long-term investors and you should not purchase common shares of the Fund if you intend to sell them shortly after purchase. |

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|:---|:---|
| **Special Risk Considerations** | &nbsp;&nbsp;An investment in common shares of the Fund involves risk. A summary of key principal risks of investing in the Fund are provided below. Principal risk factors are more fully described under "Risks" later on in this Prospectus. The risks below have been identified alphabetically and not in the order of magnitude of risks. There is no assurance that the Fund will achieve its investment objective and you may lose money. The value of the Fund's holdings may decline, and the Fund's NAV and share price may go down. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the Federal Deposit Insurance Corporation (the "FDIC") or any other government agency. The significance of any specific risk to an investment in the Fund will vary over time depending on the composition of the Fund's portfolio, market conditions, and other factors. You should carefully consider the risks described under "Risks" beginning on page 37 of this Prospectus, along with additional risks relating to investments in the Fund because any one or more of these risks may result in losses to the Fund.<br>**Active Management Risk** <br>The Fund is actively managed and its performance therefore will reflect, in part, the ability of the portfolio managers to make investment decisions that seek to achieve the Fund's investment objective. Due to its active management, the Fund could underperform its benchmark index and/or other funds with similar investment objectives and/or strategies.<br>**Activist Strategies Risk**<br>The Fund may purchase securities of a fund/company that is the subject of a proxy contest or which activist investors, which could include accounts/funds affiliated with the Adviser, are attempting to influence, in the expectation that new management or a change in investment/business strategies will cause the price of the fund/company's securities to increase. If the proxy contest, or the new management, is not successful, the market price of the fund/company's securities will typically fall.<br>**Closed-End Fund Structure Risk**<br>Unlike open-end funds, closed-end funds like the Fund do not continuously offer shares and do not provide daily redemptions. Rather, if a shareholder determines to buy additional common shares or sell shares already held, the shareholder may do so by trading through a broker on the NYSE or otherwise. Because the market value of the common shares may be influenced by such factors as dividend levels (which are in turn affected by expenses), call protection on its portfolio securities, dividend stability, portfolio credit quality, the Fund's NAV, relative demand for and supply of such shares in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot assure you that its common shares will trade at a price equal to or higher than NAV in the future. |

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&nbsp;&nbsp;**Corporate Bonds Risk**<br>The market value of a corporate bond generally may be expected to rise and fall inversely with interest rates. The market value of intermediate and longer-term corporate bonds is generally more sensitive to changes in interest rates than is the market value of shorter-term corporate bonds. The market value of a corporate bond also may be affected by factors directly related to the issuer, such as investors' perceptions of the creditworthiness of the issuer, the issuer's financial performance, perceptions of the issuer in the market place, performance of management of the issuer, the issuer's capital structure and use of financial leverage and demand for the issuer's goods and services. There is a risk that the issuers of corporate bonds may not be able to meet their obligations on interest or principal payments at the time called for by an instrument. Corporate bonds of below investment grade quality are often high risk and have speculative characteristics and may be particularly susceptible to adverse issuer-specific developments.<br>**Counterparty Risk**<br>The risk exists that a counterparty to a transaction in a financial instrument held by the Fund or by a special purpose or structured vehicle in which the Fund invests may become insolvent or otherwise fail to perform its obligations, including making payments to the Fund, due to financial difficulties. The Fund may obtain no or limited recovery in a bankruptcy or other reorganizational proceedings, and any recovery may be significantly delayed. Transactions that the Fund enters into may involve counterparties in the financials sector and, as a result, events affecting the financials sector may cause the Fund's NAV to fluctuate.<br>**Credit Risk**<br>Credit risk is the risk that the value of debt instruments may decline if the issuer thereof defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Various factors could affect the actual or perceived willingness or ability of the issuer to make timely interest or principal payments, including changes in the financial condition of the issuer or in general economic conditions. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. A rating downgrade by such agencies can negatively impact the value of such instruments. Lower quality or unrated instruments held by the Fund may present increased credit risk as compared to higher-rated instruments. Non-investment grade debt instruments may be subject to greater price fluctuations and are more likely to experience a default than investment grade debt instruments and therefore may expose the Fund to increased credit risk. If the Fund purchases unrated instruments, or if the ratings of instruments held by the Fund are lowered after purchase, the Fund will depend on analysis of credit risk more heavily than usual.<br>**Derivatives Risk**<br>Derivatives may involve significant risks. Derivatives are financial instruments, traded on an exchange or in the over-the-counter ("OTC") markets, with a value in relation to, or derived from, the value of an underlying asset(s) (such as a security, commodity or currency) or other reference, such as an index, rate or other economic indicator (each an underlying reference). Derivatives may include those that are privately placed or otherwise exempt from SEC registration, including certain Rule 144A eligible securities. Derivatives could result in Fund losses if the underlying reference does not perform as anticipated. Use of derivatives is a highly specialized activity that can involve investment techniques, risks, and tax planning different from those associated with more traditional investment instruments. The Fund's derivatives strategy may not be successful and use of certain derivatives could result in substantial, potentially unlimited, losses to the Fund regardless of the Fund's actual investment. A relatively small movement in the price, rate or other economic indicator associated with the underlying reference may result in substantial loss for the Fund. Derivatives may be more volatile than other types of investments. Derivatives can increase the Fund's risk exposure to underlying references and their attendant risks, including the risk of an adverse credit event associated with the underlying reference (credit risk), the risk of an adverse movement in the value, price or rate of the underlying reference (market risk), the risk of an adverse movement in the value of underlying currencies (foreign currency risk) and the risk of an adverse movement in underlying interest rates (interest rate risk).<br>

&nbsp;&nbsp; <br> Derivatives may expose the Fund to additional risks, including the risk of loss due to a derivative position that is imperfectly correlated with the underlying reference it is intended to hedge or replicate (correlation risk), the risk that a counterparty will fail to perform as agreed (counterparty risk), the risk that a hedging strategy may fail to mitigate losses, and may offset gains (hedging risk), the risk that the return on an investment may not keep pace with inflation (inflation risk), the risk that losses may be greater than the amount invested (leverage risk), the risk that the Fund may be unable to sell an investment at an advantageous time or price (liquidity risk), the risk that the investment may be difficult to value (pricing risk), and the risk that the price or value of the investment fluctuates significantly over short periods of time (volatility risk). The value of derivatives may be influenced by a variety of factors, including national and international political and economic developments. Potential changes to the regulation of the derivatives markets may make derivatives more costly, may limit the market for derivatives, or may otherwise adversely affect the value or performance of derivatives.<br>**Equity Securities Risk** <br>The Fund expects to buy and sell private and public equity securities. The value of equity securities of public and private, listed and unlisted companies and equity derivatives generally varies with the performance of the issuer and movements in the equity markets. As a result, the Fund may suffer losses if it invests in equity instruments of issuers whose performance diverges from the Adviser's expectations or if equity markets generally move in a single direction and the Fund has not hedged against such a general move. The Fund also may be exposed to risks that issuers will not fulfill contractual obligations such as, in the case of convertible securities or private placements, delivering marketable common stock upon conversions of convertible securities and registering restricted securities for public resale.<br>

&nbsp;&nbsp;**Exchange Traded Fund ("ETF") Risk**<br>Investments in ETFs have unique characteristics, including, but not limited to, the expense structure and additional expenses associated with investing in ETFs. An ETF's share price may not track its specified market index (if any) and may trade below its NAV. Certain ETFs use a "passive" investment strategy and do not take defensive positions in volatile or declining markets. Other ETFs in which the Fund may invest are actively managed ETFs (i.e., they do not track a particular benchmark), which indirectly subjects the Fund to active management risk. An active secondary market in an ETF's shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons.<br>**Foreign Securities Risk**<br>Investments in or exposure to foreign securities involve certain risks not associated with investments in or exposure to securities of U.S. companies. For example, foreign markets can be extremely volatile. Foreign securities may also be less liquid, making them more difficult to trade, than securities of U.S. companies so that the Fund may, at times, be unable to sell foreign securities at desirable times or prices. Brokerage commissions, custodial costs and other fees are also generally higher for foreign securities. The Fund may have limited or no legal recourse in the event of default with respect to certain foreign securities, including those issued by foreign governments. In addition, foreign governments may impose withholding or other taxes on the Fund's income, capital gains or proceeds from the disposition of foreign securities, which could reduce the Fund's return on such securities. In some cases, such withholding or other taxes could potentially be confiscatory. Other risks include: possible delays in the settlement of transactions or in the payment of income; generally less publicly available information about foreign companies; the impact of economic, political, social, diplomatic or other conditions or events (including, for example, military confrontations, war, terrorism and disease/virus outbreaks and epidemics), possible seizure, expropriation or nationalization of a company or its assets or the assets of a particular investor or category of investors; accounting, auditing and financial reporting standards that may be less comprehensive and stringent than those applicable to domestic companies; the imposition of economic and other sanctions against a particular foreign country, its nationals or industries or businesses within the country; and the generally less stringent standard of care to which local agents may be held in the local markets. In addition, it may be difficult to obtain reliable information about the securities and business operations of certain foreign issuers. Governments or trade groups may compel local agents to hold securities in designated depositories that are not subject to independent evaluation. The less developed a country's securities market is, the greater the level of risks.<br>

&nbsp;&nbsp;**Frequent Trading Risk**<br>The portfolio managers may actively and frequently trade investments in the Fund's portfolio to carry out its investment strategies. Frequent trading of investments increases the possibility that the Fund, as relevant, will realize taxable capital gains (including short-term capital gains, which are generally taxable to shareholders at higher rates than long-term capital gains for U.S. federal income tax purposes), which could reduce the Fund's after-tax return. Frequent trading can also mean higher brokerage and other transaction costs, which could reduce the Fund's return. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund's performance.<br>**High-Yield Investments Risk**<br>Securities and other debt instruments held by the Fund that are rated below investment grade (commonly called "high-yield" or "junk" bonds) and unrated debt instruments of comparable quality tend to be more sensitive to credit risk than higher-rated debt instruments and may experience greater price fluctuations in response to perceived changes in the ability of the issuing entity or obligor to pay interest and principal when due than to changes in interest rates. These investments are generally more likely to experience a default than higher-rated debt instruments. High-yield debt instruments are considered to be predominantly speculative with respect to the issuer's capacity to pay interest and repay principal. These debt instruments typically pay a premium - a higher interest rate or yield - because of the increased risk of loss, including default. High-yield debt instruments may require a greater degree of judgment to establish a price, may be difficult to sell at the time and price the Fund desires, may carry high transaction costs, and also are generally less liquid than higher-rated debt instruments. The ratings provided by third party rating agencies are based on analyses by these ratings agencies of the credit quality of the debt instruments and may not take into account every risk related to whether interest or principal will be timely repaid. In adverse economic and other circumstances, issuers of lower-rated debt instruments are more likely to have difficulty making principal and interest payments than issuers of higher-rated debt instruments.<br>**Illiquid Investments Risk**<br>The Fund may invest in securities, bank debt, private funds and companies, other assets and/or third-party managers and other claims, which are subject to legal or other restrictions on transfer or for which no liquid market exists. The market prices, if any, for such investments tend to be volatile and may not be readily ascertainable, and the Fund may not be able to execute a buy or sell order on exchanges at the desired price or to liquidate an open position due to market conditions, including the operation of daily price fluctuation limits. The sale of restricted and illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. The Fund may not be able to readily dispose of such illiquid investments and, in some cases, may be contractually prohibited from disposing of such investments for a specified period of time. If trading on an exchange is suspended or restricted, the Fund may not be able to execute trades or close out positions on terms that the Adviser believes are desirable. Realization of value from such investments may be difficult in the short-term, or may have to be made at a substantial discount compared to other freely tradable investments. An investment in the Fund is suitable only for certain sophisticated investors who do not require immediate liquidity for their investments.<br>**Interest Rate Risk**<br>Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Changes in the value of a debt instrument usually will not affect the amount of income the Fund receives from it but will generally affect the value of your investment in the Fund. Changes in interest rates may also affect the liquidity of the Fund's investments in debt instruments. In general, the longer the maturity or duration of a debt instrument, the greater its sensitivity to changes in interest rates. Interest rate declines also may increase prepayments of debt obligations, which, in turn, would increase prepayment risk (the risk that the Fund will have to reinvest the money received in securities that have lower yields). Very low or negative interest rates may prevent the Fund from generating positive returns and may increase the risk that, if followed by rising interest rates, the Fund's performance will be negatively impacted. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation. Actions by governments and central banking authorities can result in increases in interest rates. Such actions may negatively affect the value of debt instruments held by the Fund, resulting in a negative impact on the Fund's performance and NAV. Any interest rate increases could cause the value of the Fund's investments in debt instruments to decrease. Rising interest rates may prompt redemptions from the Fund, which may force the Fund to sell investments at a time when it is not advantageous to do so, which could result in losses.<br>

&nbsp;&nbsp; **Issuer Risk**<br>An issuer in which the Fund invests or to which it has exposure may perform poorly or below expectations, and the value of its securities may therefore decline, which may negatively affect the Fund's performance. Underperformance of an issuer may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, disease/virus outbreaks, epidemics or other events, conditions and factors which may impair the value of an investment in the Fund and could result in increased premiums or discounts to the Fund's net asset value.<br>

&nbsp;&nbsp;**Market Risk**<br>The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund's ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events - or the potential for such events - could have a significant negative impact on global economic and market conditions.<br>**Mortgage- and other Asset-Backed Instruments Risk**<br>The value of any mortgage-backed and other asset-backed instruments including collateralized debt obligations and collateralized loan obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements; or the market's assessment of the quality of underlying assets. Mortgage-backed instruments represent interests in, or are backed by, pools of mortgages from which payments of interest and principal (net of fees paid to the issuer or guarantor of the instruments) are distributed to the holders of the mortgage-backed instruments. Other types of asset-backed securities typically represent interests in, or are backed by, pools of receivables such as credit, automobile, student and home equity loans. Mortgage- and other asset-backed instruments can have a fixed or an adjustable rate. Mortgage-and other asset-backed instruments are subject to liquidity risk (the risk that it may not be possible for the Fund to liquidate the instrument at an advantageous time or price) and prepayment risk (the risk that the underlying mortgage or other asset may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields). In addition, the impact of prepayments on the value of mortgage- and other asset-backed instruments may be difficult to predict and may result in greater volatility. A decline or flattening of housing values may cause delinquencies in mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed instruments and thereby adversely affect the ability of the mortgage-backed instruments issuer to make principal and/or interest payments to mortgage-backed instrument holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage-and other asset-backed instruments, making them more volatile and more sensitive to changes in interest rates.<br>Payment of principal and interest on some mortgage-backed instruments (but not the market value of the instruments themselves) may be guaranteed (i) by the full faith and credit of the U.S. Government (in the case of securities guaranteed by the Government National Mortgage Association) or (ii) by its agencies, authorities, enterprises or instrumentalities (in the case of securities guaranteed by the Federal National Mortgage Association ("FNMA") or the Federal Home Loan Mortgage Corporation ("FHLMC")), which are not insured or guaranteed by the U.S. Government (although FNMA and FHLMC may be able to access capital from the U.S. Treasury to meet their obligations under such securities). Mortgage-backed instruments issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may be supported by various credit enhancements, such as pool insurance, guarantees issued by governmental entities, letters of credit from a bank or senior/subordinated structures, and may entail greater risk than obligations guaranteed by the U.S. Government, whether or not such obligations are guaranteed by the private issuer.<br>

&nbsp;&nbsp; **Non-Diversified Fund Risk**<br>The Fund is non-diversified, which generally means that it may invest a greater percentage of its total assets in the securities of fewer issuers than a "diversified" fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund's value will likely be more volatile than the value of a more diversified fund.<br>**Private Credit Asset Risk**<br>The Fund intends to obtain exposure to select less liquid or illiquid private credit investments. Typically, private credit investments are not traded in public markets and are illiquid, such that the Fund may not be able to resell some of its holdings for extended periods, which may be several years, or at the price at which the Fund is valuing its investments. The Fund may, from time to time or over time, focus its private credit investments in a particular industry or sector or select industries or sectors. Investment performance of such industries or sectors may thus at times have an out-sized impact on the performance of the Fund. Additionally, private credit investments can range in credit quality depending on security-specific factors, including total leverage, amount of leverage senior to the security in question, variability in the issuer's cash flows, the size of the issuer, the quality of assets securing debt and the degree to which such assets cover the subject company's debt obligations. The issuers of private credit investment will often be leveraged, as a result of recapitalization transactions, and may not be rated by national credit rating agencies. The Fund may also obtain exposure to private credit assets indirectly by investing in underlying funds or other vehicles. Less information may be available with respect to private company investments and such investments offer limited liquidity. Private companies are generally not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls over financial reporting. As a result, there is risk that the Fund may invest on the basis of incomplete or inaccurate information, which may adversely affect the Fund's investment performance.<br>

&nbsp;&nbsp;**Private Companies Risk**<br>The Fund may make direct private equity, venture or other private investments in securities or other instruments issued by private companies or other private issuers. Operating results for private companies/issuers in a specified period will be difficult to predict. Such investments involve a high degree of business and financial risk that can result in substantial losses.<br>Private companies are generally not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles and are not required to maintain effective internal controls over financial reporting. As a result, the Adviser may not have timely or accurate information about the business, financial condition and results of operations of the private companies in which the Fund invests. There is risk that the Fund may invest on the basis of incomplete or inaccurate information, which may adversely affect the Fund's investment performance. Private companies in which the Fund may invest may have limited financial resources, shorter operating histories, more asset concentration risk, narrower product lines and smaller market shares than larger businesses, which tend to render such private companies more vulnerable to competitors' actions and market conditions, as well as general economic downturns. These companies generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. These companies may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity.<br>Typically, investments in private companies are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that the Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be no assurance that the Fund will be able to realize the value of private company investments in a timely manner.<br>**Private Fund Risk**<br>Investments in private funds will subject the Fund indirectly to investment risks associated with the private funds' underlying investments, which are generally expected to be risks associated with the Fund's direct investment strategies and which are described throughout this section of the Prospectus. In addition, investments in private funds involve special risks including that they typically are not registered as investment companies under the Investment Company Act of 1940 (the "Investment Company Act"). Therefore, as an investor in private funds, the Fund will not have the benefit of the protections afforded by the Investment Company Act to investors in registered investment companies. These include, among others, limitations on the use of leverage, and requirements relating to custody of assets, board composition, and approval of advisory contracts. Private funds may, in some cases, concentrate their investments in a single industry or group of related industries. This increases the sensitivity of their investment returns to economic factors affecting that industry or group of industries. As a result, private funds' investments may, in some cases, be more speculative or volatile and thus subject the Fund to greater risk of loss.<br>

&nbsp;&nbsp;The Adviser typically has limited ability to verify independently the information provided by a private fund or its manager, including valuations. Inaccurate or delayed valuations provided by private funds could adversely affect the value of the Fund's shares.<br>Investments in private funds are typically illiquid. In some cases, the Fund may only be able to redeem its interests in the private fund at specific intervals and may be subject to lock-up periods, notice requirements, or redemption gates. In other cases, a private fund may not provide any liquidity whatsoever (as the fund may be "closed-ended"). In addition, a private fund may distribute illiquid or difficult-to-value securities in-kind in connection with a redemption. In such cases, the Fund may be required to hold or liquidate these securities or distribute them to shareholders, potentially at a loss or on unfavorable terms.<br>Private funds generally pay both asset-based and performance-based compensation to their investment managers. As a result, the private funds' gross returns are reduced by the asset-based and performance-based compensation paid by the private funds. Thus, as an investor in these funds, the Fund bears a proportionate share of the private fund fees and expenses, which are in addition to the management fee paid by the Fund to the Adviser.<br>**Reinsurance Risk** <br>The performance of reinsurance-related securities and the reinsurance industry itself are tied to the occurrence of various triggering events, including weather, natural disasters (hurricanes, earthquakes, etc.), non-natural large catastrophes and other specified events causing physical and/or economic loss. If the likelihood and severity of natural and other large disasters increase, the risk of significant losses to reinsurers may also increase. Typically, one significant triggering event (even in a major metropolitan area) will not result in financial failure to a reinsurer. However, a series of major triggering events could cause the failure of a reinsurer. Similarly, to the extent the Fund invests in reinsurance-related securities for which a triggering event occurs, losses associated with such event could result in losses to the Fund's investment, and a series of major triggering events affecting a large portion of the reinsurance- related securities held by the Fund could result in substantial losses to the Fund's investment. In addition, unexpected events such as natural disasters or terrorist attacks could lead to government intervention. Political, judicial and legal developments affecting the reinsurance industry could also create new and expanded theories of liability or regulatory or other requirements; such changes could have a material adverse effect on the Fund's investment.<br>

&nbsp;&nbsp;**Senior Loan Risk**<br>Senior loans and interests in other bank loans may not be readily marketable and may be subject to restrictions on resale. Senior loans and other bank loans may not be considered "securities," and investors in these loans may not be entitled to rely on anti-fraud and other protections under the federal securities laws. In some cases, negotiations involved in disposing of indebtedness may require weeks to complete. Consequently, some indebtedness may be difficult or impossible to dispose of readily at what the Adviser believes to be a fair price. In addition, valuation of illiquid indebtedness involves a greater degree of judgment in determining the Fund's NAV than if that value were based on available market quotations, and could result insignificant variations in the Fund's daily NAV. At the same time, some loan interests are traded among certain financial institutions and accordingly may be deemed liquid. Further, the settlement period (the period between the execution of the trade and the delivery of cash to the purchaser) for some senior loans and other bank loans transactions may be significantly longer than the settlement period for other investments, and in some case may take longer than seven days.<br>**Short Selling Risk**<br>The extent to which the Fund engages in short sales will depend upon the Adviser's investment strategy and opportunities. A short sale creates the risk of a theoretically unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost to the Fund of buying those securities to cover the short position. There can be no assurance that the Fund will be able to maintain the ability to borrow securities sold short. In such cases, the Fund can be "bought in" (i.e., forced to repurchase securities in the open market to return to the lender). There also can be no assurance that the securities necessary to cover a short position will be available for purchase at or near prices quoted in the market, and such risk may be exacerbated to the extent that such securities are thinly traded or illiquid. Purchasing securities to close out a short position can itself cause the price of the securities to rise further, thereby exacerbating the loss. It may also be impossible for the Fund to borrow securities at the most desirable time to make a short sale, particularly in illiquid securities markets.<br>

&nbsp;&nbsp;**Special Purpose Acquisition Companies Risk**<br>Capital raised through the initial public offering of securities of a SPAC is typically placed into a trust account until acquired business combination is completed or a predetermined period of time (typically 24 months) elapses. Investors in a SPAC would receive a return on their investment in the event that a target company is acquired and the combined publicly-traded company's shares trade above the SPAC's initial public offering ("IPO") price, or alternatively, the market price at which an investor acquired a SPAC's shares subsequent to its IPO. In the event that a SPAC is unable to locate and acquire a target business by the timeframe established at the time of its IPO, the SPAC would be forced to liquidate its assets, which may result in losses due to the expenses and liabilities of the SPAC, to the extent third-parties are permitted to bring claims against IPO proceeds held in the SPAC's trust account. Investors in a SPAC are subject to the risk that, among other things, (i) such SPAC may not be able to complete a qualifying business combination by the deadline established at the time of its IPO, (ii) assets in the trust account may become subject to third-party claims against such SPAC, which may reduce the per share liquidation value received by the investors in the SPAC in the event it fails to complete a business combination within the required time period, (iii) such SPAC may be exempt from the rules promulgated by the SEC to protect investors in "blank check" companies, such as Rule 419 promulgated under the Securities Act, so that investors in such SPAC may not be afforded the benefits or protections of those rules, (iv) such SPAC will likely only complete one business combination, which will cause its returns and future prospects to be solely dependent on the performance of a single acquired business, (v) the value of any target business, including its stock price as a public company, may decrease following its acquisition by such SPAC, (vi) the value of the funds invested and held in the trust account may decline, (vii) the inability to redeem due to the failure to hold the securities in the SPAC on the applicable record date to do so, and (viii) if the SPAC is unable to consummate a business combination, public stockholders will be forced to wait until the deadline before liquidating distributions are made. The Fund may invest in a SPAC that, at the time of investment, has not selected or approached any prospective target businesses with respect to a business combination. In such circumstances, there may be limited basis for the Fund to evaluate the possible merits or risks of such SPAC's investment in any particular target business. In addition, to the extent that a SPAC completes a business combination, it may be affected by numerous risks inherent in the business operations of the acquired company or companies. For these and additional reasons, investments in SPACs are speculative and involve a high degree of risk.<br>**Valuation Risk**<br>The Fund is subject to valuation risk, which is the risk that one or more of the securities in which the Fund invests are valued at prices that the Fund is unable to obtain upon sale due to factors such as incomplete data, market instability or human error. The Adviser may use an independent pricing service or prices provided by dealers to value securities at their market value. Because the secondary markets for certain investments may be limited, such instruments may be difficult to value. See "Net Asset Value." When market quotations are not available, the Adviser may price such investments pursuant to a number of methodologies, such as computer-based analytical modeling or individual security evaluations. These methodologies generate approximations of market values, and there may be significant professional disagreement about the best methodology for a particular type of financial instrument or different methodologies that might be used under different circumstances. In the absence of an actual market transaction, reliance on such methodologies is essential, but may introduce significant variances in the ultimate valuation of the Fund's investments.<br>

**SUMMARY OF FUND EXPENSES**

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| | |
|:---|:---|
| **Shareholder Transaction Expenses** |  |
| &nbsp;&nbsp;&nbsp;Sales load paid by you (as a percentage of offering price)<sup>(1)</sup> | 3.00% |
| &nbsp;&nbsp;&nbsp;Offering expenses borne by the Fund (as a percentage of offering price)<sup>(1)</sup> |  |
| &nbsp;&nbsp;&nbsp;Reinvestment Program fees | 0.01%<sup>(2)</sup> |
| &nbsp;&nbsp;&nbsp;Reinvestment Program sale transaction fee | 3 cents per share<sup>(2)</sup> |

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| | |
|:---|:---|
| **Estimated Annual Expenses** (as a percentage of net assets attributable to common shares) |  |
| &nbsp;&nbsp;&nbsp;Management Fees<sup>(3)(4)</sup> | 1.27% |
| &nbsp;&nbsp;&nbsp;Interest Payments on Borrowed Funds<sup>(5)</sup> | 3.56% |
| &nbsp;&nbsp;&nbsp;Other Expenses | 1.18% |
| &nbsp;&nbsp;&nbsp;Acquired Fund Fees and Expenses | 0.78% |
| &nbsp;&nbsp;&nbsp;Total Annual Expenses | 6.79% |
| &nbsp;&nbsp;&nbsp;Fee Waivers and/or Expense Reimbursements<sup>(4)</sup> | -0.29% |
| &nbsp;&nbsp;&nbsp;Total Annual Expenses after Fee Waivers and/or Expense Reimbursements<sup>(4)</sup> | 6.50% |

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(1) If the common shares
 are sold to or through underwriters, the Prospectus Supplement will set forth any applicable sales load and the estimated
 offering expenses. Fund shareholders will pay all offering expenses involved with an offering.

(2) The Program Administrator's
 (as defined below under "Reinvestment Program") fees for the handling of the reinvestment of dividends will be
 paid by the Fund. However, you will pay a 3 cents per share fee incurred in connection with open-market purchases, which will
 be deducted from the value of the dividend. You will not be charged a sales fee if you direct the Program Administrator to
 sell your common shares held in a dividend reinvestment account. Per share fees include any applicable brokerage commissions
 the Program Administrator is required to pay.

(3) The Fund currently
 pays the Adviser a monthly fee at an annual contractual investment management fee rate of 1.05% of the average daily value
 of the Fund's Managed Assets. For purposes of calculating these fees, "Managed Assets" means the Fund's
 average daily gross asset value, minus the sum of the Fund's accrued and unpaid dividends on any outstanding preferred
 shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper
 or notes issued by the Fund and the liquidation preference of any outstanding preferred shares). Although the contractual
 rate is based on Managed Assets, the rate shown in the table is based on net assets determined as of October 31, 2024.

(4) The Fund and
 the Adviser have entered into an expense limitation agreement (the "Expense Limitation Agreement"), pursuant to
 which the Adviser has contractually agreed to limit expenses, excluding interest, taxes, investor relations services, other
 investment-related costs, leverage expenses, extraordinary expenses, other expenses not incurred in the ordinary course of
 the Fund's business, and expenses of counsel or other persons or services retained by the Fund's trustees who
 are not interested persons, to 1.05% of Managed Assets plus 0.30% of average daily net assets. For the year ended October
 31, 2024, $987,184 of fees were waived and reimbursed. The Adviser may, at a later date, recoup from the Fund the fees waived
 and/or other expenses reimbursed by the Adviser during the previous 36 months, but only if, after such recoupment, the Fund's
 expense ratio does not exceed the percentage described above. For the year ended October 31, 2024, none of the fees were recouped.
 The current Expense Limitation Agreement will expire on July 1, 2026 and automatically renews for one-year terms. Termination
 or modification of the Expense Limitation Agreement requires approval of the Board.

(5) The Fund has entered
 into a $125 million Credit Facility with TD Bank effective on July 20, 2021 (the "Facility") which matures on
 January 20, 2026. As of April 30, 2025, the Fund had $45 million outstanding drawn under the Facility.

The following example illustrates the expenses, including the sales load of 3.00% that you would pay on a $1,000 investment in common shares, assuming (i) total net annual expenses of 6.50% of net assets attributable to common shares, and (ii) a 5% annual return:

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **One Year** | **Three Years** | **Five Years** | **Ten Years** |
| Total expenses incurred | $93 | $220 | $343 | $633 |

---

**The example should not be considered a representation of future expenses. The example assumes that the estimated "Other Expenses" set forth in the Estimated Annual Expenses table are accurate and that all dividends and distributions are reinvested at NAV. Actual expenses may be greater or less than those assumed. Moreover, the Fund's actual rate of return may be greater or less than the hypothetical 5% return shown in the example.**

**FINANCIAL HIGHLIGHTS**

The financial highlights table is intended to help you understand the Fund's financial performance for the periods presented. Certain information reflects financial results for a single common share of the Fund.

The report of Ernst & Young LLP, the independent registered public accounting firm for the Fund, is included in the Fund's October 31, 2024 annual report, is incorporated by reference into the Prospectus and SAI and can be obtained by shareholders. The Fund's financial statements included in the Fund's [October 31, 2024 annual report](http://www.sec.gov/Archives/edgar/data/826020/000139834425000241/fp0091519-1_ncsr.htm) and the Fund's unaudited, [semi-annual report for the period ended April 30, 2025](http://www.sec.gov/Archives/edgar/data/826020/000139834425012580/fp0094105-1_ncsrs.htm) are incorporated by reference into the Prospectus and the SAI.

(For a share outstanding throughout each period)

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the** <br> **Period Ended** <br> **April 30, 2025<sup>(a)(b)</sup>** | **For the** <br> **Year Ended**<br> **October 31, 2024<sup>(b)</sup>**  | **For the** <br> **Year Ended**<br> **October 31, 2023<sup>(b)</sup>**  | **For the** <br> **Year Ended**<br> **October 31, 2022<sup>(b)</sup>**  | **For the** <br> **Period Ended** <br> **October 31, 2021<sup>(c)(d)\*</sup>** | **For the** <br> **Year Ended**<br> **February 28, 2021<sup>(d)</sup>**  |
| **PER COMMON SHARE OPERATING PERFORMANCE** |  |  |  |  |  |  |
| Net asset value - beginning of year/period | $8.07 | $8.32 | $8.64 | $9.86 | $9.94 | $10.60 |
| **INCOME/(LOSS) FROM INVESTMENT OPERATIONS** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income<sup>(e)</sup> | 0.22 | 0.47 | 0.18 | 0.05 | 0.10 | 0.32 |
| &nbsp;&nbsp;&nbsp;Net realized and change in unrealized gain/(loss) on investments and unfunded loan commitments<sup>(e)</sup> | 0.32 | 0.41 | 0.54 | (0.21) | 0.16 | (0.64) |
| **Total Income/(Loss) from Investment Operations** | 0.54 | 0.88 | 0.72 | (0.16) | 0.26 | (0.32) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS** |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income<sup>(e)</sup> | (0.17) | (1.13) | (0.20) | (0.31) | (0.12) | (0.34) |
| &nbsp;&nbsp;&nbsp;From tax return of capital<sup>(e)</sup> | (0.34) | - | (0.84) | (0.75) | (0.22) | (0.02) |
| **Total Distributions to Common Shareholders** | (0.51) | (1.13) | (1.04) | (1.06) | (0.34) | (0.36) |
| &nbsp;&nbsp;&nbsp;Accretion to net asset value resulting from share repurchases and tender offer<sup>(e)(f)</sup> | - | - | - | - | - | 0.02 |
| **Total Capital Share Transactions** | - | - | - | - | - | 0.02 |
| Net asset value per common share - end of year/period | $8.10 | $8.07 | $8.32 | $8.64 | $9.86 | $9.94 |
| Market price per common share - end of year/period | $7.68 | $7.50 | $7.39 | $7.84 | $9.34 | $9.26 |
| **Total Investment Return - Net Asset Value<sup>(g)</sup>** | 7.10% | 12.77% | 9.63% | (0.95%) | 2.84% | (2.14%) |
| **Total Investment Return - Market Price<sup>(g)</sup>** | 9.26% | 18.00% | 7.31% | (5.12%) | 4.57% | (1.59%) |
| **Ratios to average net assets** |  |  |  |  |  |  |
| Ratio of expenses including waivers to average net assets<sup>(i)(k)</sup> | 5.59 %<sup>(h)</sup> | 5.72% | 4.61% | 2.36% | 1.43 %<sup>(h)</sup> | 2.26% |
| Ratio of expenses excluding waivers to average net assets<sup>(i)(k)</sup> | 5.97 %<sup>(h)</sup> | 6.01% | 4.73% | 2.75% | 1.60 %<sup>(h)</sup> | 2.68% |
| Ratio of net investment income including waivers to average net assets | 5.23 %<sup>(h)</sup> | 5.83% | 2.09% | 0.49% | 1.62 %<sup>(h)</sup> | 3.37% |
| **SUPPLEMENTAL DATA** |  |  |  |  |  |  |
| Portfolio turnover rate | 53.94% | 129.43% | 76.16% | 99.00% | 94.00% | 56.00% |
| Net assets attributable to common shares, end of period (000s) | $344306 | $343151 | $353867 | $367459 | $419710 | $605535 |
| Total shares outstanding (000s)<sup>(d)</sup> | 42529 | 42529 | 42529 | 42529 | 42529 | 60920 |
| Asset coverage, end of period per $1,000<sup>(j)</sup> | 7651 | 3990 | 6689 | 3904 | 9394 | 27794 |
| Aggregate principal amount of borrowings, end of year/period (000s) | $45000 | $86000 | $52900 | $175500 | $50000 | $22600 |
| Average borrowings outstanding during the end of year/period (000s) | $66898 | $71653 | $88961 | $124674 | $20559 | $211066 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **For the** <br> **Period Ended** <br> **April 30, 2025<sup>(a)(b)</sup>** | **For the** <br> **Year Ended**<br> **October 31, 2024<sup>(b)</sup>**  | **For the** <br> **Year Ended**<br> **October 31, 2023<sup>(b)</sup>**  | **For the** <br> **Year Ended**<br> **October 31, 2022<sup>(b)</sup>**  | **For the** <br> **Period Ended** <br> **October 31, 2021<sup>(c)(d)</sup>** | **For the** <br> **Year Ended**<br> **February 28, 2021<sup>(d)</sup>**  |
| **SUPPLEMENTAL RATIOS** |  |  |  |  |  |  |
| **Ratios to average net assets** |  |  |  |  |  |  |
| Ratio of expenses excluding dividend expense on securities sold short, interest expense and other fees related to revolving credit facility to average net assets<sup>(k)</sup> | 1.56 %<sup>(h)</sup> | 1.54% | 1.58% | 1.67% | 1.38 %<sup>(h)</sup> | 2.13% |
| **Ratios to average net assets plus borrowings** |  |  |  |  |  |  |
| Ratio of expenses including waivers to average net assets<sup>(i)(k)</sup> | 4.70 %<sup>(h)</sup> | 4.73% | 3.71% | 1.79% | 1.37 %<sup>(h)</sup> | 1.72% |
| Ratio of expenses excluding waivers to average net assets<sup>(k)</sup> | 5.02 %<sup>(h)</sup> | 4.97% | 3.81% | 2.09% | 1.54 %<sup>(h)</sup> | 2.04% |
| Ratio of expenses excluding dividend expense on securities sold short, interest expense and other fees related to revolving credit facility to average net assets<sup>(k)</sup> | 1.31 %<sup>(h)</sup> | 1.27% | 1.27% | 1.27% | 1.32 %<sup>(h)</sup> | 1.30% |
| Ratio of net investment income including waivers to average net assets | 4.39 %<sup>(h)</sup> | 4.82% | 1.69% | 0.38% | 1.56 %<sup>(h)</sup> | 2.56% |

---

*<sup>(a)</sup>* *Unaudited.*

*<sup>(b)</sup>* *Consolidated financials.*

*<sup>(c)</sup>* *With the approval of the Board effective October 31, 2021, the Fund's fiscal year end was changed from February 28 to October 31.* 

*<sup>(d)</sup>* *Reflects a 1 for 2 reverse stock split effective May 20, 2022, see Note 8 in the accompanying Notes to Consolidated Financial Statements.*

*<sup>(e)</sup>* *Calculated using average common shares outstanding.*

*<sup>(f)</sup>* *Please see Note 8 in the accompanying Notes to Consolidated Financial Statements for additional information.*

*<sup>(g)</sup>* *Total investment return is calculated assuming a purchase of common share at the opening on the first day and a sale at closing on the last day of each period reported. Dividends and distributions are assumed for purposes of this calculation to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Total investment returns does not reflect sales load or brokerage commissions, if any, and are not annualized.*

*<sup>(h)</sup>* *Annualized.*

*<sup>(i)</sup>* *The Investment Adviser (See Note 1 and Note 5) has entered into a written expense limitation agreement with the Fund under which it will limit the expenses of the Fund (excluding interest, taxes, investor relations services, other investment-related costs, leverage expenses, extraordinary expenses, other expenses not incurred in the ordinary course of such Fund's business, and expenses of any counsel or other persons or services retained by such Fund's trustees who are not interested persons) subject to possible recoupment by the Investment Adviser within three years of being incurred.*

*<sup>(j)</sup>* *Asset coverage ratio is presented to represent the coverage available to each $1,000 of borrowings. The asset coverage ratio per $1,000 of debt is presented to represent the coverage available to each $1,000 of borrowings. Calculated by subtracting the Fund's total liabilities (excluding the principal amount of the Leverage Facility) from the Fund's total assets and dividing by the principal amount of the Leverage Facility and then multiplying by $1,000.*

*<sup>(k)</sup>* *Expense ratios do not include any acquired fund fees.*

*<sup>\*</sup>* *On June 4, 2021, the Adviser assumed investment management responsibility for the Fund (performance and other financial results prior to that date are attributable to a different investment manager).*

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the** <br> **Year Ended**<br> **February 29, 2020**  | **For the**<br> **Year Ended**<br> **February 28, 2019** | **For the** <br> **Year Ended**<br> **February 28, 2018**  | **For the** <br> **Year Ended**<br> **February 28, 2017**  | **For the** <br> **Year Ended**<br> **February 29, 2016**  |
| **PER COMMON SHARE OPERATING PERFORMANCE** |  |  |  |  |  |
| Net asset value - beginning of year/period | $5.54 | $5.69 | $5.80 | $5.36 | $5.93 |
| **INCOME/(LOSS) FROM INVESTMENT OPERATIONS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net investment income | 0.30 | 0.29 | 0.30 | 0.31 | 0.32 |
| &nbsp;&nbsp;&nbsp;Net realized and change in unrealized gain/(loss) on investments and unfunded loan commitments | (0.23) | (0.14) | (0.12) | 0.45 | (0.56) |
| **Total Income/(Loss) from Investment Operations** | 0.07 | 0.15 | 0.18 | 0.76 | (0.24) |
| **DISTRIBUTIONS TO COMMON SHAREHOLDERS** |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;From net investment income | (0.31) | (0.30) | (0.25) | (0.32) | (0.33) |
| &nbsp;&nbsp;&nbsp;From tax return of capital | - | - | (0.04) | - | - |
| **Total Distributions to Common Shareholders** | (0.31) | (0.30) | (0.29) | (0.32) | (0.33) |
| &nbsp;&nbsp;&nbsp;Accretion to net asset value resulting from share repurchases and tender offer | - | - | - | - | - |
| **Total Capital Share Transactions** | - | - | - | - | - |
| Net asset value per common share - end of year/period | $5.30 | $5.54 | $5.69 | $5.80 | $5.36 |
| Market price per common share - end of year/period | $4.91 | $4.82 | $5.17 | $5.59 | $4.63 |
| **Total Investment Return - Net Asset Value<sup>(a)(b)</sup>** | 1.88% | 3.37% | 3.62% | 14.93% | (3.72)% |
| **Total Investment Return - Market Price<sup>(a)(c)</sup>** | 8.48% | (1.02)% | (2.31)% | 28.24% | (10.17)% |
| **Ratios to average net assets** |  |  |  |  |  |
| Ratio of expenses (before interest and other fees related to revolving credit facility)<sup>(d)(e)</sup> | 1.62% | 1.64% | 1.64% | 1.62% | 1.61% |
| Ratio of expenses, prior to fee waivers and/or recoupments, if any <sup>(d)(e)</sup> | 2.86% | 2.92% | 2.55% | 2.24% | 2.08% |
| Ratio of expenses, net of fee waivers and/or recoupments, if any<sup>(d)(e)</sup> | 2.85% | 2.90% | 2.54% | 2.24% | 2.08% |
| Ratio of net investment income<sup>(d)(e)</sup> | 5.29% | 5.16% | 4.58% | 5.44% | 5.45% |
| **SUPPLEMENTAL DATA** |  |  |  |  |  |
| Portfolio turnover rate | 53% | 60% | 89% | 67% | 44% |
| Net assets attributable to common shares, end of period (000s) | $782813 | $818100 | $840774 | $857138 | $792177 |
| Total shares outstanding (000s) | 147788 | 147788 | 147788 | 147788 | 147788 |
| Asset coverage, end of period per $1,000<sup>(f)</sup> | 3478 | 3534 | 3610 | 3589 | 3443 |
| Borrowings, end of year/period (000s) | $315900 | $322800 | $322100 | $331100 | $324300 |
| Average borrowings | $312939 | $332698 | $343074 | $337209 | $331738 |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **For the** <br> **Year Ended**<br> **February 29, 2020**  | **For the** <br> **Year Ended**<br> **February 28, 2019**  | **For the** <br> **Year Ended**<br> **February 28, 2018**  | **For the** <br> **Year Ended**<br> **February 28, 2017**  | **For the** <br> **Year Ended**<br> **February 29, 2016**  |
| **SUPPLEMENTAL RATIOS** |  |  |  |  |  |
| **Ratios to average net assets plus borrowings** |  |  |  |  |  |
| Ratio of expenses (before interest and other fees related to revolving credit facility)<sup>(e)</sup> | 1.16% | 1.16% | 1.16% | 1.16% | 1.15% |
| Expenses, prior to fee waivers and/or recoupments, if any<sup>(e)</sup> | 2.06% | 2.08% | 1.81% | 1.60% | 1.50% |
| Ratio of expenses, net of fee waivers and/or recoupments, if any<sup>(e)</sup> | 2.05% | 2.07% | 1.80% | 1.60% | 1.50% |
| Ratio of net investment income<sup>(e)</sup> | 3.81% | 3.68% | 3.25% | 3.88% | 3.98% |

---

&nbsp;&nbsp;&nbsp;&nbsp;*(a)* *Total investment return calculations are attributable to Common Shares.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(b)* *Total investment return at net asset value has been calculated assuming a purchase at net asset value at the beginning of each period and a sale at net asset value at the end of each period and assumes reinvestment of dividends, capital gain distributions and return of capital distributions/allocations, if any, in accordance with the provisions of the dividend reinvestment plan.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(c)* *Total investment return at market value has been calculated assuming a purchase at market value at the beginning of each period and a sale at market value at the end of each period and assumes reinvestment of dividends, capital gain distributions, and return of capital/allocations, if any, in accordance with the provisions of the dividend reinvestment plan.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(d)* *The Investment Adviser has entered into a written expense limitation agreement with the Fund under which it will limit the expenses of the Fund (excluding interest, taxes, investment-related costs, leverage expenses, extraordinary expenses and acquired fund fees and expenses) subject to possible recoupment by the Investment Adviser within three years of being incurred.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(e)* *Annualized for periods less than one year.* 

&nbsp;&nbsp;&nbsp;&nbsp;*(f)* *Asset coverage ratios, for fiscal periods beginning after 2011, is presented to represent the coverage available to each $1,000 of borrowings. The Asset coverage ratio per $1,000 of debt is presented to represent the coverage available to each $1,000 of borrowings before consideration of any Preferred Shares liquidation price, while the Asset coverage inclusive of Preferred Shares, presents the coverage available to both borrowings and Preferred Shares, expressed in relation to the per share liquidation price of the Preferred Shares.* 

**USE OF PROCEEDS**

The net proceeds from the issuance of common shares hereunder will be invested in accordance with the Fund's investment objectives and policies as stated below. We currently anticipate that we will be able to invest all of the net proceeds in accordance with our investment objectives and policies within approximately two months from the date on which the proceeds from an offering are received by the Fund. Such investments may be delayed if suitable investments are unavailable at the time or for other reasons, such as market volatility and lack of liquidity in the markets of suitable investments. Pending such investment, it is anticipated that the proceeds will be invested in short-term, tax-exempt or taxable investment grade securities or in high quality, short-term money market instruments.

**THE FUND**

The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act. The Fund was formed as a Massachusetts business trust on December 2, 1987, pursuant to its Agreement and Declaration of Trust, as subsequently amended (the "Declaration of Trust") and is governed by the laws of the Commonwealth of Massachusetts. The Fund commenced operations on May 12, 1987. The Fund first changed its name from Pilgrim Prime Rate Trust to Pilgrim America Prime Rate Trust, effective April 12, 1996, and then changed its name back to Pilgrim Prime Rate Trust, effective November 16, 1998. Effective March 1, 2002, the Fund changed its name to ING Prime Rate Trust. Effective May 1, 2014, the Fund changed its name to Voya Prime Rate Trust. Effective June 4, 2021, and as a result of Saba Capital Management, L.P. assuming the role as investment adviser to the Fund, the Fund changed its name to Saba Capital Income & Opportunities Fund. The Fund's common shares are traded on the NYSE under the symbol "BRW." The Fund's principal office is located at 405 Lexington Avenue, 58<sup>th</sup> Floor, New York, New York 10174, and its telephone number is 212-542-4644.

The Board is responsible for overseeing the Fund's activities, including reviewing contractual arrangements with companies that provide services to the Fund, and review the Fund's performance. Under the rules of the NYSE applicable to listed companies, the Fund is required to hold an annual meeting of shareholder in each year. If the Fund is converted to an open-end investment company or if for any reason common shares are no longer listed on the NYSE (or any other national securities exchange the rules of which require annual meetings of shareholders), the Fund does not intend to hold annual meetings of shareholders.

The Fund is responsible for paying all the expenses of its operation, including, without limitation, the management fee payable and extraordinary expenses, such as litigation expenses. Under Massachusetts law, shareholders, including preferred shares could, under certain circumstances, be held personally liable for the obligations of the Fund. However, the Declaration of Trust disclaims shareholder liability based solely on his or her being or having been a shareholder of the Fund and requires that notice of such disclaimer be given in each agreement, obligation, or instrument entered into or executed by the Fund or the Trustees. The Declaration of Trust provides for indemnification, out of Fund property, for all loss and expense of any shareholder held personally liable for the obligations of the Fund. Thus, the risk of a shareholder incurring financial loss on account of shareholder liability is limited to circumstances in which the Fund would be unable to meet its obligations.

**DESCRIPTION OF SHARES**

**Common Shares**

The Fund is a business trust formed under the laws of the Commonwealth of Massachusetts and governed by the Declaration of Trust. The Fund is authorized to issue an unlimited number of common shares of beneficial interest, without par value. Each common share has one vote and, when issued and paid for in accordance with the terms of this offering, will be fully paid and the purchasers of the common shares will have no obligation to make further payments for the purchase of the common shares or contributions to the Fund solely by reason of their ownership of the common shares, except that the Board of Trustees of the Fund (the "Board") shall have the power to cause shareholders to pay certain expenses of the Fund by setting off charges due from shareholders from declared but unpaid dividends or distributions owed the shareholders and/or by reducing the number of common shares owned by each respective shareholder. Shareholders are entitled to one vote for each share held. When preferred shares are outstanding, the holders of common shares will not be entitled to receive any distributions from the Fund unless all accrued dividends on preferred shares have been paid, unless asset coverage (as defined in the Investment Company Act) with respect to preferred shares would be at least 200% after giving effect to the distributions and unless certain other requirements imposed by any rating agencies rating the preferred shares have been met. See "Description of Shares-Preferred Shares" in the SAI. All common shares are equal as to dividends, assets and voting privileges and have no conversion, preemptive or other subscription rights. The Fund will send annual and semi-annual reports, including financial statements, to all holders of its shares.

Unlike open-end funds, closed-end funds like the Fund do not continuously offer shares and do not provide daily redemptions. Rather, if a shareholder determines to buy additional common shares or sell shares already held, the shareholder may do so by trading through a broker on the NYSE or otherwise. Because the market value of the common shares may be influenced by such factors as dividend levels (which are in turn affected by expenses), call protection on its portfolio securities, dividend stability, portfolio credit quality, the Fund's NAV, relative demand for and supply of such shares in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot assure you that its common shares will trade at a price equal to or higher than NAV in the future. The common shares are designed primarily for long-term investors and you should not purchase the common shares if you intend to sell them soon after purchase. See "Repurchase of Common Shares" below and "Repurchase of Common Shares" in the SAI.

The Fund's outstanding common shares are, and when issued, the common shares offered by this Prospectus will be, publicly held and listed and traded on the NYSE under the symbol "BRW." The Fund determines its NAV on a daily basis as of the close of the regular trading session. The following table sets forth, for the quarters indicated, the highest and lowest daily closing prices on the NYSE per common share, and the NAV per common share and the premium to or discount from NAV, on the date of each of the high and low market prices. The table also sets forth the number of common shares traded on the NYSE during the respective quarters.

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **NYSE Market Price** <br> **Per Common Share**  | **NYSE Market Price** <br> **Per Common Share**  | **NAV per Common Share on Date of Market Price** | **NAV per Common Share on Date of Market Price** | **Premium/ (Discount) on Date of Market Price** | **Premium/ (Discount) on Date of Market Price** | **Trading** |
| **During Quarter Ended** | **High** | **Low** | **High** | **Low** | **High** | **Low** | **Volume** |
| April 30, 2025 | $7.99 | $6.91 | $8.60 | $7.71 | -7.09% | -10.38% | 10418727 |
| January 31, 2025 | $8.04 | $7.42 | $8.70 | $7.99 | -7.59% | -7.11% | 14169483 |
| October 31, 2024 | $7.59 | $7.21 | $8.15 | $7.91 | -6.87% | -8.88% | 8213688 |
| July 31, 2024 | $7.40 | $6.86 | $8.02 | $7.53 | -7.73% | -8.90% | 9060434 |
| April 30, 2024 | $7.63 | $7.02 | $8.21 | $7.83 | -7.06% | -10.57% | 11197324 |
| January 31, 2024 | $7.94 | $7.31 | $8.64 | $8.00 | -8.10% | -8.63% | 10650851 |
| October 31, 2023 | $8.04 | $7.18 | $8.72 | $8.15 | -7.80% | -11.90% | 8507684 |
| July 31, 2023 | $8.10 | $7.61 | $8.76 | $8.35 | -7.53% | -8.86% | 8045549 |
| April 30, 2023 | $8.42 | $7.66 | $9.14 | $8.60 | -7.93% | -10.93% | 6926864 |

---

As of April 30, 2025, the NAV per common share of the Fund was $8.10 and the market price per common share was $7.68, representing a premium/discount to NAV of -5.07%. Common shares of the Fund have historically traded at both a premium and discount to NAV.

As of April 30, 2025, the Fund has $42,529,493.52 common shares outstanding.

**Preferred Shares**

The Declaration of Trust provides that the Board may authorize and issue preferred shares, with rights as determined by the Board, by action of the Board without the approval of the holders of the common shares. Holders of common shares have no preemptive right to purchase any preferred shares that might be issued. The Fund does not currently intend to issue preferred shares.

Under the Investment Company Act, the Fund is not permitted to issue preferred shares unless immediately after such issuance the value of the Fund's total assets is at least 200% of the liquidation value of the outstanding preferred shares (i.e., the liquidation value may not exceed 50% of the Fund's total assets). In addition, the Fund is not permitted to declare any cash dividend or other distribution on its common shares unless, at the time of such declaration, the value of the Fund's total assets is at least 200% of such liquidation value. If the Fund issues preferred shares, it may be subject to restrictions imposed by the guidelines of one or more rating agencies that may issue ratings for preferred shares issued by the Fund. These guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed on the Fund by the Investment Company Act. It is not anticipated that these covenants or guidelines would impede the Adviser from managing the Fund's portfolio in accordance with the Fund's investment objectives and policies. Please see "Description of Shares" in the SAI for more information.

**Authorized Shares** 

The following table provides the Fund's authorized shares and common shares outstanding as of April 30, 2025.

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| | | | |
|:---|:---|:---|:---|
| **Title of Class** | **Amount Authorized** | **Amount** <br> **Held by Fund or for its** <br> **Account** | **Amount Outstanding Exclusive of Amount held by** <br> **Fund** |
| Common Shares | Unlimited | 45048584 | 42529494 |

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**THE FUND'S INVESTMENTS**

**Investment Objectives and Policies** 

The Fund's investment objective is to seek to provide shareholders with a high level of current income, with a secondary goal of capital appreciation. The investment objective is a non-fundamental policy that may be changed by the Board without shareholder approval upon 60 days' prior written notice to shareholders. In pursuing its objectives, the Fund may invest in debt and equity securities of public and private companies, which include, among other things, investment in closed-end funds, SPACs, private funds, reinsurance and public and private debt instruments.

The Fund's investments may be in issuers located both in the U.S. and outside the U.S. The Fund may invest, without limit, in issuers located in emerging market countries. The Fund may invest, without limit, in debt/fixed income instruments and convertible securities that, at the time of purchase, are rated below investment grade or are unrated but determined to be of comparable quality (commonly referred to as "high yield" investments or "junk" bonds). The Fund may invest in debt instruments of any maturity and does not seek to maintain a particular dollar-weighted average maturity. A bond is issued with a specific maturity date, which is the date when the issuer must pay back the bond's principal (face value). Bond maturities range from less than 1 year to more than 30 years. Typically, the longer a bond's maturity, the more price risk the Fund and the Fund's investors face as interest rates rise, but the Fund could receive a higher yield in return for that longer maturity and higher interest rate risk.

The Fund may also utilize derivatives, including, but not limited to, total return swaps, credit default swaps, and options and futures, in seeking to enhance returns and/or to reduce portfolio risk. In pursuit of the Fund's objectives, the Fund may invest on an opportunistic basis in private funds that pursue a variety of investment strategies.

The Fund may invest in a wide array of securities and instruments in pursuit of its objective. Specifically, the Fund may invest in the following instruments and use the following investment techniques, subject to any limitations set forth herein. There is no guarantee the Fund will buy all of the types of securities or use all of the investment techniques that are described herein and in the SAI.

Although the Fund may not necessarily invest in any one of the instruments described below at a singular point in time, any one of the investments identified below may comprise a material portion of the Fund's portfolio.

***Closed-End Funds***

The Fund invests its assets in U.S. and non-U.S. "closed-end" investment companies (or "closed-end funds") and, at times, to a significant degree. U.S. closed-end funds are registered investment companies that, unlike open-end funds, do not typically issue redeemable shares. Instead, a fixed number of shares trade on a secondary market, such as a securities exchange. The Fund may invest in closed-ends funds that are domiciled outside of the U.S. or whose securities are traded on a non-U.S. exchange. Such securities are typically listed for trading on the NYSE or NASDAQ and, in some cases, may be traded in other over-the-counter markets or on foreign exchanges.

The Fund invests in closed-end funds that pursue a variety of strategies, including closed-end funds that invest in dividend and other income-producing securities (e.g., equity securities) and closed-end funds that invest in debt and loans, including high yield or non-investment grade securities (commonly referred to as "junk bonds"). The closed-ends funds have the flexibility to invest in a broad range of securities. The closed-end funds may invest in securities with a range of maturities from short- to long-term. Substantially all of the closed-end funds' assets may be invested in lower-rated securities, which may include securities having the lowest rating for non-subordinated debt instruments (i.e., rated C by Moody's Investors Service or CCC+ or lower by Standard & Poor's Ratings Services and Fitch Ratings) and unrated securities of equivalent investment quality. The Fund's closed-end fund investments may also invest in equity securities, municipal securities (including through depositary receipts or other securities convertible into securities of foreign issuers), mortgage-related and other asset-backed securities, real estate investment trusts ("REITs"), loan participations, inflation-protected securities, structured securities, variable, floating, and inverse floating rate instruments and preferred stock, and may use other investment techniques, including investments in derivative instruments. The closed-end funds may also make short sales of securities or maintain a short position.

The Fund generally will purchase shares of closed-end funds in the secondary market. The Fund will incur normal brokerage costs on such purchases similar to the expenses the Fund would incur for the purchase of securities of any other type of issuer in the secondary market. The Fund may, however, also purchase securities of a closed-end fund in an initial public offering or other offering, when, in the opinion of the Adviser, based on a consideration of the nature of the closed-end fund's proposed investments, the prevailing market conditions and the level of demand for such securities, they represent an attractive opportunity for growth of capital. The offering price typically can include a dealer spread, which may be higher than the applicable brokerage cost if the Fund purchased such securities in the secondary market. In seeking to maximize value, the Fund may also invest in closed-ends funds that are, or the Adviser believes may become, the subject of an activist campaign by a shareholder, such as a proxy contest, whose aim is to eliminate or reduce the discount to the closed-end fund's NAV. Such activism may be initiated by the Adviser (on behalf of its other clients) or by third parties.

***Special Purpose Acquisition Companies***

A SPAC is typically a publicly traded company that raises investment capital via an IPO for the purpose of acquiring one or more existing companies (or interests therein) via merger, combination, acquisition or other similar transactions (each a "SPAC Transaction"). The shares of a SPAC are issued in "units" that typically include one share of common stock and one warrant (or partial warrant) conveying the right to purchase additional shares. Within 52 days after the closing of the IPO, the shares of common stock and the warrants comprising the units will begin to trade separately and become freely tradeable. After going public, and until a SPAC Transaction is completed, a SPAC generally invests the proceeds of its IPO (less a portion retained to cover expenses) in U.S. Government securities, money market securities and/or cash. If a SPAC does not complete a SPAC Transaction within a specified period of time after going public, the SPA*C* is typically dissolved, at which point the invested funds are returned to the SPAC's shareholders (less certain permitted expenses) and any warrants issued by the SPAC expire worthless. In some cases, the Fund will forfeit its right to exercise its warrants to receive additional shares even if a SPAC Transaction occurs if the Fund holding the warrant elects to redeem its shares of common stock and not participate in the SPAC Transaction.

***Debt and other Fixed Income Investments***

*Corporate Bonds.* Corporate bonds are debt obligations issued by corporations. Corporate bonds may be either secured or unsecured. Collateral used for secured debt includes real property, machinery, equipment, accounts receivable, stocks, bonds or notes. If a bond is unsecured, it is known as a debenture. Bondholders, as creditors, have a prior legal claim over common and preferred stockholders as to both income and assets of the corporation for the principal and interest due them and may have a prior claim over other creditors if liens or mortgages are involved. Interest on corporate bonds may be fixed or floating, or the bonds may be zero coupons. Interest on corporate bonds is typically paid semi-annually and is fully taxable to the bondholder. Corporate bonds contain elements of both interest rate risk and credit risk. The market value of a corporate bond generally may be expected to rise and fall inversely with interest rates and may also be affected by the credit rating of the corporation, the corporation's performance and perceptions of the corporation in the marketplace. Corporate bonds usually yield more than government or agency bonds due to the presence of credit risk.

*Private Credit*. The Fund may also invest in debt securities issued by private companies. Generally, very little public information exists about these private companies, and the Fund will rely on the ability of the Adviser to obtain adequate information to evaluate the potential returns from investing in these companies. Private companies may have limited financial resources and may be unable to meet their obligations under their debt securities that the Fund holds. The Fund may invest in senior secured first lien term loans and senior secured second lien term loans issued by private companies. Additionally, the Fund may invest in debt securities issued by private companies that may be secured on a second priority basis by the same collateral securing senior secured debt of such companies. The Fund may also investment in private investment funds that invest in private debt and credit assets. In general, these interests are subject to underlying lock-ups, are not freely transferrable and/or have substantial transfer restrictions and no active trading market but may have certain rights as to redemption.

*Senior Loans.* The Fund may invest in senior secured floating rate and fixed rate loans or debt. Senior loans primarily include senior floating rate loans, first and second lien loans, and secondarily senior floating rate debt obligations (including those issued by an asset-backed pool), and interests therein. Senior loan interests may take the form of direct interests acquired during a primary distribution and also may take the form of assignments of, novations of, or participations in, a bank loan acquired in secondary markets. A senior loan typically is originated, negotiated, and structured by a U.S. or foreign commercial bank, insurance company, finance company, or other financial institution (collectively, the "Agent") for a group of loan investors. The Agent typically administers and enforces the senior loan on behalf of the other loan investors in the syndicate. In addition, an institution, typically but not always the Agent, holds any collateral on behalf of the loan investors. Purchasers of senior loans and other forms of indebtedness depend primarily on the creditworthiness of the corporate or other borrower for payment of principal and interest.

Senior loans typically have a stated term of between five and nine years and have rates of interest that typically are redetermined daily, monthly, quarterly or semi-annually. Longer interest rate reset periods generally increase fluctuations in the Fund's NAV as a result of changes in market interest rates. The Fund is not subject to any restrictions with respect to the maturity of senior loans held in its portfolio. As a result, as short-term interest rates increase, interest payable to the Fund from its investments in senior loans should increase, and as short-term interest rates decrease, interest payable to the Fund from its investments in senior loans should decrease. Because of prepayments, the Adviser expects the average life of the senior loans in which the Fund invests to be shorter than the stated maturity.

The Fund may purchase senior loans on a direct assignment basis. If the Fund purchases a senior loan on direct assignment, it typically succeeds to all the rights and obligations under the loan agreement of the assigning lender and becomes a lender under the loan agreement with the same rights and obligations as the assigning lender. The Fund may also purchase, without limitation, participations in senior loans. The participation by the Fund in a lender's portion of a senior loan typically will result in the Fund having a contractual relationship only with such lender, not with the borrower. As a result, the Fund may have the right to receive payments of principal, interest and any fees to which it is entitled only from the lender selling the participation and only upon receipt by such lender of payments from the borrower. Such indebtedness may be secured or unsecured. Loan participations typically represent direct participations in a loan to a borrower and generally are offered by banks or other financial institutions or lending syndicates. The Fund may participate in such syndications, or can buy part of a loan, becoming a part lender.

*Convertible Securities.* A convertible security is a bond, debenture, note, preferred stock or other security that may be converted into or exchanged for a prescribed amount of common stock or other equity security of the same or a different issuer within a particular period of time at a specified price or formula. A convertible security entitles the holder to receive interest paid or accrued on debt or the dividend paid on preferred stock until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar to nonconvertible income securities in that they ordinarily provide a stable stream of income with generally higher yields than those of common stocks of the same or similar issuers, but lower yields than comparable nonconvertible securities. The value of a convertible security is influenced by changes in interest rates, with investment value declining as interest rates increase and increasing as interest rates decline. The credit standing of the issuer and other factors also may have an effect on the convertible security's investment value. Convertible securities rank senior to common stock in a corporation's capital structure but are usually subordinated to comparable nonconvertible securities. Convertible securities may be subject to redemption at the option of the issuer at a price established in the convertible security's governing instrument.

*Asset-Backed Securities.* Asset-backed securities ("ABS") are a form of structured debt obligation. ABS are bonds backed by pools of loans or other receivables. The collateral for these securities may include home equity loans, automobile and credit card receivables, boat loans, computer leases, airplane leases, mobile home loans, recreational vehicle loans and hospital account receivables. The Fund may invest in these and other types of ABS that may be developed in the future. These securities may provide the Fund with a less effective security interest in the related collateral than do mortgage related securities. Therefore, there is the possibility that recoveries on the underlying collateral may not, in some cases, be available to support payments on these securities.

*Collateralized Loan Obligations.* A Collateralized Loan Obligation ("CLO") is a structured debt security, issued by a financing company (generally called a special purpose vehicle or "SPV"), that was created to reapportion the risk and return characteristics of a pool of bank loans. Investors in CLOs bear the credit risk of the underlying collateral. The bank loans are used as collateral supporting the various debt tranches issued by the SPV. Multiple tranches of securities are issued by the CLO, offering investors various maturity and credit risk characteristics. Tranches are categorized as senior, mezzanine, or subordinated/equity, according to their degree of risk. The key feature of the CLO structure is the prioritization of the cash flows from a pool of debt securities among the several classes of the CLO. If there are defaults or the CLO's collateral otherwise underperforms, scheduled payments to senior tranches take precedence over those of mezzanine tranches, and scheduled payments to mezzanine tranches take precedence over those to subordinated/equity tranches. The Fund may invest in all tranches, including lower-rated tranches. The Fund may invest in the equity or residual portion of the capital structure of CLOs. The SPV is a company founded solely for the purpose of securitizing payment claims. On this basis, marketable securities are issued which, due to the diversification of the underlying risk, generally represent a lower level of risk than the original assets. The redemption of the securities issued by the SPV takes place at maturity out of the cash flow generated by the collected claims. The vast majority of CLOs are actively managed by an independent investment manager.

*High-Yield Securities*. High-yield, or low and below investment grade securities (below investment grade securities are also known as "junk bonds") are debt securities with the lowest investment grade rating (e.g., BBB by S&P and Fitch or Baa by Moody's), that are below investment grade (e.g., lower than BBB by S&P and Fitch or Baa by Moody's) or that are unrated but determined by the Fund's portfolio managers to be of comparable quality. These types of securities may be issued to fund corporate transactions or restructurings, such as leveraged buyouts, mergers, acquisitions, debt reclassifications or similar events. High-yield securities may be more speculative in nature than securities with higher ratings and tend to be more sensitive to credit risk, particularly during a downturn in the economy. These types of securities may be issued by unseasoned companies without long track records of sales and earnings, or by companies or municipalities that have questionable credit strength. High-yield securities and comparable unrated securities: (i) likely will have some quality and protective characteristics that, in the judgment of one or more Nationally Recognized Statistical Rating Organizations, are outweighed by large uncertainties or major risk exposures to adverse conditions; (ii) are speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligation; and (iii) may have a less liquid secondary market, potentially making it difficult to value or sell such securities. Credit ratings issued by credit rating agencies are designed to evaluate the safety of principal and interest payments of rated securities. They do not, however, evaluate the market value risk of lower-quality securities and, therefore, may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes in the economy or in the condition of the issuer that affect the market value of the securities. Consequently, credit ratings are used only as a preliminary indicator of investment quality. High-yield securities may be structured as fixed-, variable- or floating-rate obligations or as zero- coupon, pay-in-kind and step-coupon securities and may be privately placed or publicly offered.

The rates of return on these types of securities generally are higher than the rates of return available on more highly rated securities, but generally involve greater volatility of price and risk of loss of principal and income, including the possibility of default by or insolvency of the issuers of such securities. Accordingly, the Fund may be more dependent on the Adviser's credit analysis with respect to these types of securities than is the case for more highly rated securities.

The market values of certain high-yield securities and comparable unrated securities tend to be more sensitive to individual corporate developments and changes in economic conditions than are the market values of more highly rated securities. In addition, issuers of high-yield and comparable unrated securities often are highly leveraged and may not have more traditional methods of financing available to them, so that their ability to service their debt obligations during an economic downturn or during sustained periods of rising interest rates may be impaired.

The risk of loss due to default is greater for high-yield and comparable unrated securities than it is for higher rated securities because high-yield securities and comparable unrated securities generally are unsecured and frequently are subordinated to more senior indebtedness. The Fund may incur additional expenses to the extent that it is required to seek recovery upon a default in the payment of principal or interest on its holdings of such securities. The existence of limited markets for lower-rated debt securities may diminish the Fund's ability to: (i) obtain accurate market quotations for purposes of valuing such securities and calculating portfolio net asset value; and (ii) sell the securities at fair market value either to meet redemption requests or to respond to changes in the economy or in financial markets.

Many lower-rated securities are not registered for offer and sale to the public under the Securities Act. Investments in these restricted securities may be determined by the Adviser to be liquid (able to be sold or disposed of in current market conditions in seven days or less without the sales or dispositions significantly changing the market value of the investment).

*Mortgage Related Derivative Instruments*. The Fund may invest in MBS credit default swaps. MBS credit default swaps include swaps the reference obligation for which is an MBS or related index, such as the CMBX Index (a tradeable index referencing a basket of CMBS), the TRX Index (a tradeable index referencing total return swaps based on CMBS) or the ABX Index (a tradeable index referencing a basket of sub-prime MBS). The Fund may engage in other derivative transactions related to MBS, including purchasing and selling exchange-listed and over-the-counter put and call options, futures and forwards on mortgages and MBS. The Fund may invest in newly developed mortgage related derivatives that may hereafter become available.

*Other Mortgage Related Securities*. Other mortgage related securities include securities other than those described above that directly or indirectly represent a participation in, or are secured by and payable from, mortgage loans on real property. Other mortgage related securities may be equity or debt securities issued by agencies or instrumentalities of the U.S. Government or by private originators of, or investors in, mortgage loans, including savings and loan associations, homebuilders, mortgage banks, commercial banks, investment banks, partnerships, trusts and special purpose entities of the foregoing.

*U.S. Government Debt Securities.* The Fund may invest in debt securities issued or guaranteed by the U.S. Government, its agencies or instrumentalities, including U.S. Treasury obligations, which differ in their interest rates, maturities and times of issuance. Such obligations include U.S. Treasury bills (maturity of one year or less), U.S. Treasury notes (maturity of one to ten years) and U.S. Treasury bonds (generally maturities of greater than ten years), including the principal components or the interest components issued by the U.S. Government under the separate trading of registered interest and principal securities ("STRIPS") program, all of which are backed by the full faith and credit of the United States.

*Preferred Securities.* The Fund may invest in preferred securities. There are two basic types of preferred securities. The first type, sometimes referred to as traditional preferred securities, consists of preferred stock issued by an entity taxable as a corporation. The second type, sometimes referred to as trust preferred securities, are usually issued by a trust or limited partnership and represent preferred interests in deeply subordinated debt instruments issued by the corporation for whose benefit the trust or partnership was established.

<u>Traditional Preferred Securities</u>. Traditional preferred securities generally pay fixed or adjustable rate dividends to investors and generally have a "preference" over common stock in the payment of dividends and the liquidation of a company's assets. This means that a company must pay dividends on preferred stock before paying any dividends on its common stock. In order to be payable, distributions on such preferred securities must be declared by the issuer's board of directors. Income payments on typical preferred securities currently outstanding are cumulative, causing dividends and distributions to accumulate even if not declared by the board of directors or otherwise made payable. In such a case all accumulated dividends must be paid before any dividend on the common stock can be paid. However, some traditional preferred stocks are non-cumulative, in which case dividends do not accumulate and need not ever be paid. A portion of the portfolio may include investments in non-cumulative preferred securities, whereby the issuer does not have an obligation to make up any arrearages to its shareholders. Should an issuer of a non-cumulative preferred stock held by the Fund determine not to pay dividends on such stock, the amount of dividends the Fund pays may be adversely affected. There is no assurance that dividends or distributions on the traditional preferred securities in which the Fund invests will be declared or otherwise made payable.

Preferred stockholders usually have no right to vote for corporate directors or on other matters. Shares of traditional preferred securities have a liquidation value that generally equals the original purchase price at the date of issuance. The market value of preferred securities may be affected by favorable and unfavorable changes impacting companies in the utilities and financial services sectors, which are prominent issuers of preferred securities, and by actual and anticipated changes in tax laws, such as changes in corporate income tax rates or the "Dividends Received Deduction." Because the claim on an issuer's earnings represented by traditional preferred securities may become onerous when interest rates fall below the rate payable on such securities, the issuer may redeem the securities. Thus, in declining interest rate environments in particular, the Fund's holdings, if any, of higher rate-paying fixed rate preferred securities may be reduced and the Fund may be unable to acquire securities of comparable credit quality paying comparable rates with the redemption proceeds.

<u>Trust Preferred Securities</u>. Trust preferred securities are a comparatively new asset class. Trust preferred securities are typically issued by corporations, generally in the form of interest-bearing notes with preferred security characteristics, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The trust preferred securities market consists of both fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates.

Trust preferred securities are typically junior and fully subordinated liabilities of an issuer or the beneficiary of a guarantee that is junior and fully subordinated to the other liabilities of the guarantor. In addition, trust preferred securities typically permit an issuer to defer the payment of income for eighteen months or more without triggering an event of default. Generally, the deferral period is five years or more. Because of their subordinated position in the capital structure of an issuer, the ability to defer payments for extended periods of time without default consequences to the issuer, and certain other features (such as restrictions on common dividend payments by the issuer or ultimate guarantor when full cumulative payments on the trust preferred securities have not been made), these trust preferred securities are often treated as close substitutes for traditional preferred securities, both by issuers and investors. Trust preferred securities have many of the key characteristics of equity due to their subordinated position in an issuer's capital structure and because their quality and value are heavily dependent on the profitability of the issuer rather than on any legal claims to specific assets or cash flows.

*Municipal Securities.* The Fund may invest in municipal securities, which include debt obligations issued to obtain funds for various public purposes, including the construction of a wide range of public facilities, refunding of outstanding obligations and obtaining funds for general operating expenses and loans to other public institutions and facilities. In addition, certain types of private activity bonds ("PABs") (or industrial development bonds, under pre-1986 law) are issued by or on behalf of public authorities to finance various privately owned or operated facilities, including among other things, airports, public ports, mass commuting facilities, multi-family housing projects, as well as facilities for water supply, gas, electricity, sewage or solid waste disposal and other specialized facilities. Other types of PABs, the proceeds of which are used for the construction, equipment or improvement of privately operated industrial or commercial facilities, may constitute municipal securities. The interest on municipal securities may bear a fixed rate or be payable at a variable or floating rate.

*Distressed and Defaulted Securities.* The Fund may invest in the securities of financially distressed and bankrupt issuers, including debt obligations that are in covenant or payment default. Such investments generally trade significantly below par and are considered speculative. The repayment of defaulted obligations is subject to significant uncertainties. Defaulted obligations might be repaid only after lengthy workout or bankruptcy proceedings, during which the issuer might not make any interest or other payments. Typically such workout or bankruptcy proceedings result in only partial recovery of cash payments or an exchange of the defaulted obligation for other debt or equity securities of the issuer or its affiliates, which may in turn be illiquid or speculative.

*Credit Default Swaps.* The Fund may enter into credit default swap agreements for hedging purposes or to seek to increase income or gain. The credit default swap agreement may have as reference obligations one or more securities that are not currently held by the Fund. The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an upfront or a periodic stream of payments over the term of the contract, provided that no credit event on the reference obligation occurs. If a credit event occurs, the seller generally must pay the buyer the "par value" (full notional amount) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or if the swap is cash settled the seller may be required to deliver the related net cash amount (the difference between the market value of the reference obligation and its par value). The Fund may be either the buyer or seller in the transaction. If the Fund is a buyer and no credit event occurs, the Fund will generally receive no payments from its counterparty under the swap if the swap is held through its termination date. However, if a credit event occurs, the buyer generally may elect to receive the full notional amount of the swap in exchange for an equal face amount of deliverable obligations of the reference entity, the value of which may have significantly decreased. As a seller, the Fund generally receives an upfront payment or a fixed rate of income throughout the term of the swap, which typically is between six months and three years, provided that there is no credit event. If a credit event occurs, generally the seller must pay the buyer the full notional amount of the swap in exchange for an equal face amount of deliverable obligations of the reference entity, the value of which may have significantly decreased. As the seller, the Fund would effectively add leverage to its portfolio because, in addition to its assets, the Fund would be subject to investment exposure on the notional amount of the swap in excess of any premium and margin required to establish and maintain the position.

*Structured Instruments.* The Fund may use structured instruments for investment purposes, for risk management purposes, such as to reduce the duration and interest rate sensitivity of the Fund's portfolio, and for leveraging purposes. While structured instruments may offer the potential for a favorable rate of return from time to time, they also entail certain risks. Structured instruments may be less liquid than other fixed-income securities and the price of structured instruments may be more volatile. In some cases, depending on the terms of the embedded index, a structured instrument may provide that the principal and/or interest payments may be adjusted below zero. Structured instruments also may involve significant credit risk and risk of default by the counterparty. Structured instruments may also be illiquid. Like other sophisticated strategies, the Fund's use of structured instruments may not work as intended.

*Sovereign Governmental and Supranational Debt.* The Fund may invest in all types of debt securities of governmental issuers in all countries, including foreign countries. These sovereign debt securities may include: debt securities issued or guaranteed by governments, governmental agencies or instrumentalities and political subdivisions located in foreign countries; debt securities issued by government owned, controlled or sponsored entities located in foreign countries; interests in entities organized and operated for the purpose of restructuring the investment characteristics of instruments issued by any of the above issuers; Brady Bonds, which are debt securities issued under the framework of the Brady Plan as a means for debtor nations to restructure their outstanding external indebtedness; participations in loans between emerging market governments and financial institutions; or debt securities issued by supranational entities such as the World Bank. A supranational entity is a bank, commission or company established or financially supported by the national governments of one or more countries to promote reconstruction or development. Sovereign government and supranational debt involve all the risks described herein regarding foreign and emerging markets investments as well as the risk of debt moratorium, repudiation or renegotiation.

*Inflation-Indexed Bonds.* Inflation-indexed bonds (other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds) are fixed income securities the principal value of which is periodically adjusted according to the rate of inflation. If the index measuring inflation falls, the principal value of inflation-indexed bonds (other than municipal inflation-indexed bonds and certain corporate inflation-indexed bonds) will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds ("TIPs"). For bonds that do not provide a similar guarantee, the adjusted principal value of the bond repaid at maturity may be less than the original principal. With regard to municipal inflation-indexed bonds and certain corporate inflation-indexed bonds, the inflation adjustment is typically reflected in the semi-annual coupon payment. As a result, the principal value of municipal inflation-indexed bonds and such corporate inflation-indexed bonds does not adjust according to the rate of inflation.

*Event-Linked Instruments/Catastrophe Bonds*. The Fund may obtain event-linked exposure by investing in "event-linked bonds" or "event-linked swaps" or by implementing "event-linked strategies." Event-linked exposure results in gains or losses that typically are contingent on, or formulaically related to, defined trigger events. Examples of trigger events include hurricanes, earthquakes, weather-related phenomena or statistics relating to such events. Some event-linked bonds are commonly referred to as "catastrophe bonds." If a trigger event occurs, the principal amount of the bond is reduced (potentially to zero), and the Fund may lose all or a portion of its entire principal invested in the bond or the entire notional amount on a swap.

*Reinsurance Notes*. The Fund may invest, directly or indirectly, in reinsurance contracts through shares or notes issued in connection with quota shares and/or may gain exposure to reinsurance contracts through excess of loss notes and/or industry loss warranties (collectively, "Reinsurance Notes"). As Reinsurance Notes represent an interest, either proportional or non-proportional, in one or more underlying reinsurance contracts, the Fund has limited transparency into the individual underlying contract(s) and, therefore, must rely upon the risk assessment and sound underwriting practices of the sponsor. Accordingly, it may be more difficult to fully evaluate the underlying risk profile of Reinsurance Notes, which may place the Fund's assets at greater risk of loss than if the Adviser had more complete information. The lack of transparency may also make the valuation of such investments more difficult and potentially result in mispricing that could result in losses to the Fund. In Reinsurance Notes, the Fund cannot lose more than the amount invested.

***Equity Securities***

In addition to investments in closed-end funds and SPACs, the Fund may invest in other equity securities, including common stocks, warrants, REITs, depositary receipts, and listed and unlisted private equity funds or other private funds.

*Common Stock*. Common stock represents a unit of equity ownership of a corporation. Owners typically are entitled to vote on the selection of directors and other important corporate governance matters, to receive dividend payments, if any, on their holdings. However, ownership of common stock does not entitle owners to participate in the day-to-day operations of the corporation. Common stock of domestic and foreign public corporations can be listed, and their shares traded, on domestic stock exchanges, such the NYSE or the NASDAQ Stock Market. Domestic and foreign corporations also may have their shares traded on foreign exchanges, such as the London Stock Exchange or the Tokyo Stock Exchange. Common stock may be privately placed or publicly offered. The price of common stock is generally determined by corporate earnings, type of products or services offered, projected growth rates, experience of management, liquidity, and market conditions generally. In the event that a corporation declares bankruptcy or is liquidated, the claims of secured and unsecured creditors and owners of bonds and preferred stock take precedence over the claims of those who own common stock.

*Warrants*. Warrants are privileges issued by corporations enabling the owners to subscribe to and purchase a specified number of shares of the corporation at a specified price during a specified period of time. Subscription rights normally have a short life span to expiration. The purchase of warrants involves the risk that the Fund could lose the purchase value of a right or warrant if the right to subscribe to additional shares is not exercised prior to the warrants' expiration. Also, the purchase of warrants involves the risk that the effective price paid for the warrant added to the subscription price of the related security may exceed the value of the subscribed security's market price such as when there is no movement in the level of the underlying security.

*REITs.* The Fund may invest in equity interests and debt securities issued by REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles that pool investor's capital to purchase or finance real estate. REITs may concentrate their investments in specific geographic areas or in specific property types (i.e., hotels, shopping malls, residential complexes and office buildings). The market value of REIT shares and the ability of REITs to distribute income may be adversely affected by several factors, including rising interest rates, changes in the national, state and local economic climate and real estate conditions, perceptions of prospective tenants of the safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management, maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition from new properties, the impact of present or future environmental legislation and compliance with environmental laws, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in zoning laws and other factors beyond the control of the REIT issuers. In addition, distributions received by the Fund from REITs may consist of dividends, capital gains and/or return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent application of the Fund's investment strategy results in the Fund investing in REIT shares, the percentage of the Fund's dividend income received from REIT shares will likely exceed the percentage of the Fund's portfolio which is comprised of REIT shares. There are three general categories of REITs: equity REITs, mortgage REITs and hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real property; they derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate, which may secure construction, development or long-term loans, and the main source of their income is mortgage interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.

*Depositary Receipts*. The Fund may invest in sponsored and unsponsored American Depositary Receipts ("ADRs"), European Depositary Receipts ("EDRs"), Global Depositary Receipts ("GDRs") and other similar global instruments. ADRs typically are issued by a U.S. bank or trust company and evidence ownership of underlying securities issued by a non-U.S. corporation. EDRs, which are sometimes referred to as Continental Depositary Receipts, are receipts issued in Europe, typically by non-U.S. banks and trust companies, that evidence ownership of either non-U.S. or domestic underlying securities. GDRs are depositary receipts structured like global debt issues to facilitate trading on an international basis.

*Private Equity Funds*. The Fund may invest directly in private equity funds and listed private equity funds, which may include, among others, business development companies, investment holding companies, publicly traded limited partnership interests (common units), publicly traded venture capital funds, publicly traded venture capital trusts, publicly traded private equity funds, publicly traded private equity investment trusts, publicly traded closed-end funds, publicly traded financial institutions that lend to or invest in privately held companies and any other publicly traded vehicle whose purpose is to invest in privately held companies.

The Fund may invest in private equity funds and listed private equity funds that emphasize making equity and equity-like (preferred stock, convertible stock and warrants) investments in later stage to mature businesses, or may invest in other private equity funds making debt investments or investments in companies at other stages of development. The Fund may also make these private equity investments directly. In addition, the Fund may invest in the common stock of closed-end management investment companies, including business development companies that invest in securities of listed private equity companies.

An investment in a private fund may be made in the primary offering of such fund's securities or acquired in the secondary market. Such investments may constitute "restricted securities" within the meaning of Rule 144 promulgated under the Securities Act of 1933.

The Adviser evaluates private funds based on the depth of resources of management, consistency of investment process, prior investment performance, expenses, and purity of exposure to an asset class using information contained in such private funds' marketing materials, including private placement memoranda, and gained from the Adviser's relationships with the management of such private funds. The Adviser aims to invest in private funds managed by investment advisers who the Adviser believes have the ability to invest successfully in their respective strategy, geography, and/or sector.

***Foreign Investments and Emerging Markets***

*Non-U.S. Securities.* The Fund may invest without limit in securities of non-U.S. issuers ("Non-U.S. Securities"). These securities may be U.S. dollar-denominated or non-U.S. dollar-denominated and include: (i) debt obligations issued or guaranteed by foreign national, provincial, state, municipal or other governments with taxing authority or by their agencies or instrumentalities, including securities created through the exchange of existing commercial bank loans to sovereign entities for new obligations in connection with debt restructurings, commonly referred to as "Brady Bonds;" (ii) debt obligations of supranational entities; (iii) debt obligations and other debt securities of foreign corporate issuers; (iv) fixed income securities issued by corporations that generate significant profits from non-U.S. countries; and (v) structured securities, including but not limited to, warrants, options and other derivatives, whose price is directly linked to Non-U.S. Securities or indices of Non-U.S. Securities. Some Non-U.S. Securities may be less liquid and more volatile than securities of comparable U.S. issuers. Similarly, there is less volume and liquidity in most foreign securities markets than in the United States and, at times, greater price volatility than in the United States. Because evidence of ownership of such securities usually is held outside the United States, the Fund will be subject to additional risks if it invests in Non-U.S. Securities, which include adverse political and economic developments, seizure or nationalization of foreign deposits and adoption of governmental restrictions which might adversely affect or restrict the payment of principal and interest or dividends on the foreign securities to investors located outside the country of the issuer, whether from currency blockage or otherwise. Non-U.S. Securities may trade on days when the common shares are not priced or traded.

*Emerging Markets Investments.* The Fund may invest without limitation in securities of issuers located in emerging market countries, including securities denominated in currencies of emerging market countries. Emerging market countries generally include every nation in the world (including countries that may be considered "frontier" markets) except the United States, Canada, Japan, Australia, New Zealand and most countries located in Western Europe. There is no minimum rating criteria for the Fund's investments in such securities. These issuers may be subject to risks that do not apply to issuers in larger, more developed countries. These risks are more pronounced to the extent the Fund invests significantly in one country. Less information about emerging market issuers or markets may be available due to less rigorous disclosure and accounting standards or regulatory practices. Emerging markets are smaller, less liquid and more volatile than U.S. markets. In a changing market, the Adviser may not be able to sell the Fund's portfolio securities in amounts and at prices they consider reasonable. The U.S. dollar may appreciate against non-U.S. currencies or an emerging market government may impose restrictions on currency conversion or trading. The economies of emerging market countries may grow at a slower rate than expected or may experience a downturn or recession. Economic, political and social developments may adversely affect emerging market countries and their securities markets.

*Foreign Currency Transactions.* The Fund's common shares are priced in U.S. dollars and the distributions paid by the Fund to common shareholders are paid in U.S. dollars. However, a portion of the Fund's assets may be denominated in non-U.S. currencies and the income received by the Fund from such securities will be paid in non-U.S. currencies. The Fund also may invest in or gain exposure to non-U.S. currencies for investment or hedging purposes. The Fund's investments in securities that trade in, or receive revenues in, non-U.S. currencies will be subject to currency risk, which is the risk that fluctuations in the exchange rates between the U.S. dollar and foreign currencies may negatively affect an investment. The Fund may (but is not required to) hedge some or all of its exposure to non-U.S. currencies through the use of derivative strategies, including forward foreign currency exchange contracts, foreign currency futures contracts and options on foreign currencies and foreign currency futures. Suitable hedging transactions may not be available in all circumstances and there can be no assurance that the Fund will engage in such transactions at any given time or from time to time when they would be beneficial. Although the Fund has the flexibility to engage in such transactions, the Adviser may determine not to do so or to do so only in unusual circumstances or market conditions. These transactions may not be successful and may eliminate any chance for the Fund to benefit from favorable fluctuations in relevant foreign currencies. The Fund may also use derivatives contracts for purposes of increasing exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one currency to another.

***Other Investment Companies***

In addition to investments in closed-end funds, the Fund may invest in securities of other investment companies (including exchange-traded funds, business development companies and money market funds, including other investment companies managed by the Adviser or its affiliates), subject to applicable regulatory limits, that invest primarily securities of the types in which the Fund may invest directly. As a shareholder in an investment company, the Fund will bear its ratable share of that investment company's expenses and will remain subject to payment of the Fund's advisory and other fees and expenses with respect to assets so invested. Holders of common shares will therefore be subject to duplicative expenses to the extent the Fund invests in other investment companies (except that it will not be subject to duplicate advisory fees with respect to other investment companies managed by the Adviser or its affiliates). The Adviser will take expenses into account when evaluating the investment merits of an investment in an investment company relative to available equity and/or fixed-income securities investments. In addition, the securities of other investment companies may be leveraged and will therefore be subject to the same leverage risks to which the Fund may be subject to the extent it employs a leverage strategy. Additionally, the Fund may invest in other investment companies that have exposure to and may invest in digital assets that utilize blockchain technology.

***Private Funds***

The Fund may invest in private funds that pursue private credit, real estate, reinsurance, fixed income or equity strategies without preference to any sector in which such private funds may invest. Additionally, the Fund may invest in private funds that have exposure to and may invest in digital assets that utilize blockchain technology. An investment in a private fund may be made in the primary offering of such fund's securities or acquired in the secondary market. Such investments may constitute "restricted securities" within the meaning of Rule 144 promulgated under the Securities Act of 1933.

The Adviser evaluates private funds based on the depth of resources of management, consistency of investment process, prior investment performance, expenses, and purity of exposure to an asset class using information contained in such private funds' marketing materials, including private placement memoranda, and gained from the Adviser's relationships with the management of such private funds. The Adviser aims to invest in private funds managed by investment advisers who the Adviser believes have the ability to invest successfully in their respective strategy, geography, and/or sector.

***Other Investments/Techniques***

*Short-Term Debt Securities; Temporary Defensive Positions; Invest-Up Period.* During temporary defensive periods (e.g., times when, in the Adviser's opinion, temporary imbalances of supply and demand or other temporary dislocations in the market adversely affect the price at which fixed income securities are available, or in connection with the termination of the Fund) and in order to keep cash on hand fully invested, including the period during which the net proceeds of this offering of common shares (or preferred shares, should the Fund determine to issue preferred shares in the future) are being invested, the Fund may invest any percentage of its assets in liquid, short-term investments including high quality, short-term securities and securities of other open- or closed-end investment companies that invest primarily in securities of the type in which the Fund may invest directly. The Adviser's determination that they are temporarily unable to follow the Fund's investment strategy or that it is impractical to do so will generally occur only in situations in which a market disruption event has occurred and where trading in the securities selected through application of the Fund's investment strategy is extremely limited or absent or in connection with the termination of the Fund.

*Short Sales.* The Fund may make short sales of securities. A short sale is a transaction in which the Fund sells a security it does not own in anticipation that the market price of that security will decline. The Fund may make short sales to hedge positions, for duration and risk management, in order to maintain portfolio flexibility or to enhance income or gain. When the Fund makes a short sale, it must borrow the security sold short and deliver it to the broker-dealer through which it made the short sale as collateral for its obligation to deliver the security upon conclusion of the sale. The Fund may have to pay a fee to borrow particular securities and is often obligated to pay over any payments received on such borrowed securities. The Fund's obligation to replace the borrowed security will be secured by collateral deposited with the broker-dealer, usually cash, U.S. Government securities or other liquid securities. Depending on arrangements made with the broker-dealer from which it borrowed the security regarding payment over of any payments received by the Fund on such security, the Fund may not receive any payments (including interest) on its collateral deposited with such broker-dealer. If the price of the security sold short increases between the time of the short sale and the time the Fund replaces the borrowed security, the Fund will incur a loss; conversely, if the price declines, the Fund will realize a gain. Any gain will be decreased, and any loss increased, by the transaction costs described above. Although the Fund's gain is limited to the price at which it sold the security short, its potential loss is theoretically unlimited.

*Derivatives.* The derivative instruments (both exchange-traded and over-the-counter instruments) in which the Fund may invest include forwards (such as forward foreign currency contracts, and forward interest rate agreements), futures (such as currency, equity, fixed income/debt (including interest rate), and index futures), options (including options on swaps (commonly known as swaptions), options on futures, options on indices, writing (selling) calls against positions in the portfolio (covered calls) or writing (selling) puts), structured investments (such as equity-linked notes), and swaps (such as total return, credit default, credit default index, fixed income/debt (including interest rate swaps), and swaps on index futures). The Fund typically will not gain investment exposure to the commodities markets directly, but may do so indirectly through investment in one or more subsidiaries. The Fund complies with provisions of the Investment Company Act governing investment policies on an aggregate basis with each subsidiary and the provisions of the Investment Company Act governing capital structure and leverage on an aggregate basis with the subsidiary so that the Fund treats each subsidiary's debt as its own for purposes of Section 18. Any investment adviser to a subsidiary complies with provisions of the Investment Company Act relating to investment advisory contracts (Section 15) as if it were an investment adviser to the Fund under Section 2(a)(20) of the Investment Company Act. Each subsidiary complies with provisions relating to affiliated transactions and custody. The Fund may invest in derivatives for both hedging and non-hedging purposes, including, for example, seeking to enhance returns or as a substitute for a position in an underlying asset, instrument, or other reference, to increase market exposure and investment flexibility, or to obtain or reduce particular exposures.

The Fund may enter into derivative transactions that have leverage embedded in them. Derivative transactions that the Fund may enter into and the risks associated with them are described elsewhere in this Prospectus. The Fund cannot assure you that investments in derivative transactions that have leverage embedded in them will result in a higher return on its common shares.

Under Rule 18f-4 under the Investment Company Act, among other things, the Fund must either use derivatives in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk.

*When-Issued, Delayed Delivery Securities and Forward Commitment Securities.* The Fund may purchase securities on a "when-issued" basis and may purchase or sell securities on a "forward commitment" basis (including on a "TBA" (to be announced) basis) or on a "delayed delivery" basis. When such transactions are negotiated, the price, which is generally expressed in yield terms, is fixed at the time the commitment is made, but delivery and payment for the securities take place at a later date. When-issued securities and forward commitments may be sold prior to the settlement date. If the Fund disposes of the right to acquire a when-issued security prior to its acquisition or disposes of its right to deliver or receive against a forward commitment, it might incur a gain or loss. Pursuant to recommendations of the Treasury Market Practices Group, which is sponsored by the Federal Reserve Board of New York, the Fund or its counterparty generally is required to post collateral when entering into certain forward-settling transactions, including without limitation TBA transactions.

The market value of the securities underlying a commitment to purchase securities, and any subsequent fluctuations in their market value, is taken into account when determining the NAV of the Fund starting on the day the Fund agrees to purchase the securities. The Fund does not earn interest on the securities it has committed to purchase until they are paid for and delivered on the settlement date.

Rule 18f-4 under the Investment Company Act permits the Fund to enter into when-issued or forward-settling securities (e.g., firm and standby commitments, including TBA commitments, and dollar rolls) and non-standard settlement cycle securities notwithstanding the limitation on the issuance of senior securities in Section 18 of the Investment Company Act, provided that the Fund intends to physically settle the transaction and the transaction will settle within 35 days of its trade date (the "Delayed-Settlement Securities Provision"). If a when-issued, forward-settling or non-standard settlement cycle security does not satisfy the Delayed-Settlement Securities Provision, then it is treated as a derivatives transaction under Rule 18f-4.

*Restricted and Illiquid Investments.* The Fund may invest without limitation in illiquid or less liquid investments or investments in which no secondary market is readily available or which are otherwise illiquid, including private placement securities. Liquidity of an investment relates to the ability to dispose easily of the investment and the price to be obtained upon disposition of the investment, which may be less than would be obtained for a comparable more liquid investment. "Illiquid investments" are investments which cannot be sold within seven days in the ordinary course of business at approximately the value used by the Fund in determining its NAV. Illiquid investments may trade at a discount from comparable, more liquid investments. Illiquid investments are subject to legal or contractual restrictions on disposition or lack an established secondary trading market.

**LEVERAGE**

The Fund uses leverage through directly borrowing from banks. The Fund has entered into a $125 million Facility with TD Bank effective on July 20, 2021, which matures on January 20, 2026. As of April 30, 2025, the Fund had $45 million outstanding drawn under the Facility. The use of leverage may also take the form of, without limitation, any of the various financial instruments described herein, including derivative instruments which are inherently leveraged and trading in products with embedded leverage such as options, short sales, swaps and forwards. The instruments and borrowings utilized by the Fund to leverage investments may be collateralized by the Fund's portfolio, respectively.

The use of leverage will magnify the volatility of changes in the value of the investments of the Fund. Accordingly, any event which adversely affects the value of an investment would be magnified to the extent the investment is leveraged. The cumulative effect of the use of leverage by the Fund in a market that moves adversely to its investments could result in substantial losses to the Fund, which would be greater than if the Fund was not leveraged.

While leverage increases the buying power of the Fund and presents opportunities for increasing total returns, it has the effect of potentially increasing losses as well. For example, funds borrowed for leveraging will be subject to interest, transaction and other costs, and other types of leverage also involve transaction and other costs. Any such costs may or may not be recovered by the return on the Fund's portfolio. Leverage would increase the investment return of the Fund if an investment purchased with or utilizing leverage earns a greater return than the cost to the Fund of such leverage. The use of leverage will decrease the investment return if the Fund fails to recover the cost of such leverage.

Certain types of leverage the Fund may use may result in the Fund being subject to covenants relating to asset coverage and portfolio composition requirements. The Fund may be subject to certain restrictions on investments imposed by one or more lenders or by guidelines of one or more rating agencies, which may issue ratings for any short-term debt securities or preferred shares issued by the Fund. The terms of any borrowings or rating agency guidelines may impose asset coverage or portfolio composition requirements that are more stringent than those imposed by the Investment Company Act. The Adviser does not believe that these covenants or guidelines will impede it from managing the Fund's portfolio in accordance with its investment objectives and policies if the Fund were to utilize leverage.

Under the Investment Company Act, the Fund is not permitted to issue senior securities if, immediately after the issuance of such senior securities, the Fund would have an asset coverage ratio (as defined in the Investment Company Act) of less than 300% with respect to senior securities representing indebtedness (i.e., for every dollar of indebtedness outstanding, the Fund is required to have at least three dollars of assets) or less than 200% with respect to senior securities representing preferred shares (i.e., for every dollar of preferred shares outstanding, the Fund is required to have at least two dollars of assets). The Investment Company Act also provides that the Fund may not declare distributions or purchase its shares (including through tender offers) if, immediately after doing so, it will have an asset coverage ratio of less than 300% or 200%, as applicable. Under the Investment Company Act, certain short-term borrowings (such as for cash management purposes) are not subject to these limitations if (i) repaid within 60 days, (ii) not extended or renewed and (iii) not in excess of 5% of the total assets of the Fund.

**Credit Facility**

The Fund has entered into a $125 million Facility with TD Bank effective on July 20, 2021, which matures on January 20, 2026. As of April 30, 2025, the Fund had $45 million outstanding drawn under the Facility. The Facility provides a source of leverage and is collateralized by assets of the Fund. The Fund is required to prepay outstanding amounts under this Facility or may incur a penalty rate of interest upon the occurrence of certain events of default. The Fund is typically required to indemnify the lenders under the Facility against liabilities they may incur in connection therewith.

In addition, the Facility contains covenants that, among other things, limit the Fund's ability to pay distributions in certain circumstances, incur additional debt, change certain of its investment policies, and engage in certain transactions, including mergers and consolidations. The Facility also requires asset coverage ratios in addition to those required by the Investment Company Act. The Fund is required to pledge its assets and to maintain a portion of its assets in cash or high-grade securities as a reserve against interest or principal payments and expenses. The Facility has customary covenant, negative covenant, and default provisions.

The terms and conditions of the Facility may be subject to change upon renewal or refinancing, and there is no assurance that it will be replaced or refinanced on terms and conditions representative of the foregoing, or that additional material terms will not apply. The Facility may in the future be replaced or refinanced by one or more credit facilities having substantially different terms or by the issuance of preferred shares.

**Preferred Shares**

The Fund is permitted to leverage its portfolio by issuing preferred shares. Under the Investment Company Act, the Fund is not permitted to issue preferred shares if, immediately after such issuance, the liquidation value of the Fund's outstanding preferred shares exceeds 50% of its assets (including the proceeds from the issuance) less liabilities other than borrowings (i.e., the value of the Fund's assets must be at least 200% of the liquidation value of its outstanding preferred shares). In addition, the Fund would not be permitted to declare any cash dividend or other distribution on its common shares unless, at the time of such declaration, the value of the Fund's assets less liabilities other than borrowings is at least 200% of such liquidation value.

The Fund expects that preferred shares, if issued, will pay adjustable rate dividends based on shorter-term interest rates, which would be redetermined periodically by a fixed spread or remarketing process, subject to a maximum rate which would increase over time in the event of an extended period of unsuccessful remarketing. The adjustment period for preferred share dividends could be as short as one day or as long as a year or more. Preferred shares, if issued, could include a liquidity feature that allows holders of preferred shares to have their shares purchased by a liquidity provider in the event that sell orders have not been matched with purchase orders and successfully settled in a remarketing. The Fund expects that it would pay a fee to the provider of this liquidity feature, which would be borne by common shareholders of the Fund. The terms of such liquidity feature could require the Fund to redeem preferred shares still owned by the liquidity provider following a certain period of continuous, unsuccessful remarketing, which may adversely impact the Fund.

If preferred shares are issued, the Fund may, to the extent possible, purchase or redeem preferred shares from time to time to the extent necessary in order to maintain asset coverage of any preferred shares of at least 200%. In addition, as a condition to obtaining ratings on the preferred shares, the terms of any preferred shares issued are expected to include asset coverage maintenance provisions which will require the redemption of the preferred shares in the event of non-compliance by the Fund and may also prohibit dividends and other distributions on the common shares in such circumstances. In order to meet redemption requirements, the Fund may have to liquidate portfolio securities. Such liquidations and redemptions would cause the Fund to incur related transaction costs and could result in capital losses to the Fund. Prohibitions on dividends and other distributions on the common shares could impair the Fund's ability to qualify as a RIC under the Code.

If the Fund issues preferred shares, the Fund expects that it will be subject to certain restrictions imposed by guidelines of one or more rating agencies that may issue ratings for preferred shares issued by the Fund. These guidelines are expected to impose asset coverage or portfolio composition requirements that are more stringent than those imposed on the Fund by the Investment Company Act. It is not anticipated that these covenants or guidelines would impede the Adviser from managing the Fund's portfolio in accordance with the Fund's investment objectives and policies.

**Disposition of Investments**

From a fundamental perspective, an investment may be sold if the investment does not meet original performance expectations or if the investment thesis no longer applies because of changes in the underlying fundamentals of the investment, business or industry. Investments also may be sold if a price or value target is achieved or if credit deterioration occurs. In addition, from a relative value perspective, the Adviser may decide to sell an investment if it believes there are better risk/reward opportunities available or there is a risk of default or loss of principal.

**Temporary Borrowings**

The Fund may also borrow money as a temporary measure for extraordinary or emergency purposes, including the payment of dividends and the settlement of securities transactions which otherwise might require untimely dispositions of Fund securities.

**RISKS**

An investment in the Fund involves risks, including closed-end structure risk, market risk, issuer risk, interest rate risk, and credit risk, among others. Descriptions of these and other risks of investing in the Fund are provided below (in alphabetical order). *There is no assurance that the Fund will achieve its investment objectives and you may lose money*. The value of the Fund's holdings may decline, and the Fund's NAV and share price may go down. An investment in the Fund is not a bank deposit and is not insured or guaranteed by the FDIC or any other government agency. The significance of any specific risk to an investment in the Fund will vary over time depending on the composition of the Fund's portfolio, market conditions, and other factors. You should read all of the risk information below carefully, because any one or more of these risk may result in losses to the Fund.

**Active Management Risk** 

The Fund is actively managed and its performance therefore will reflect, in part, the ability of the portfolio managers to make investment decisions that seek to achieve the Fund's investment objective. Due to its active management, the Fund could underperform its benchmark index and/or other funds with similar investment objectives and/or strategies.

**Activist Strategies Risk**

The Fund may purchase securities of a fund/company that is the subject of a proxy contest or which activist investors, which could include accounts/funds affiliated with the Adviser, are attempting to influence, in the expectation that new management or a change in investment/business strategies will cause the price of the fund/company's securities to increase. If the proxy contest, or the new management, is not successful, the market price of the fund/company's securities will typically fall.

In addition, where an acquisition or restructuring transaction or proxy fight is opposed by the subject company's management, the transaction often becomes the subject of litigation. Such litigation involves substantial uncertainties and may impose substantial cost and expense on the Fund.

**Bank Loans Risk** 

The Fund's investment program may include investments in of bank loans and participations. These obligations are subject to unique risks, including: (i) the possible invalidation of an investment transaction as a fraudulent conveyance under relevant creditors' rights laws; (ii) so-called lender-liability claims by the issuer of the obligations; (iii) environmental liabilities that may arise with respect to collateral securing the obligations; and (iv) limitations on the ability of the Fund to directly enforce its rights with respect to participations. In analyzing each bank loan or participation, the Adviser attempts to compare the relative significance of the risks against the expected benefits of the investment. Successful claims by third parties arising from these and other risks will be borne by the Fund. As secondary market trading volumes increase, new loans are frequently adopting standardized documentation to facilitate loan trading, which may improve market liquidity. There can be no assurance, however, that future levels of supply and demand in loan trading will provide an adequate degree of liquidity or that the current level of liquidity will continue. Because of the provision to holders of such loans of confidential information relating to the borrower, the unique and customized nature of the loan agreement, and the private syndication of the loan, loans are not as easily purchased or sold as a publicly traded security, and historically the trading volume in the loan market has been small relative to the high-yield debt market. Further, the settlement period (the period between the execution of the trade and the delivery of cash to the purchaser) for some bank loans transactions may be significantly longer than the settlement period for other investments, and in some case may take longer than seven days. As a result, the Fund may be forced to sell investments at unfavorable prices or borrow money or effect short settlements where possible (at a cost to the Fund), in an effort to generate sufficient cash for whatever liquidity needs may arise. The Fund's actions in this regard may not be successful.

**Catastrophe Bonds Risk**

Event-linked or catastrophe bonds carry material uncertainties and risk exposures to adverse conditions. If a trigger event, as defined within the terms of the bond, involves losses or other metrics exceeding a specific magnitude in the geographic region and time period specified therein, the Fund may lose a portion or all of its investment in such security, including accrued interest and/or principal invested in such security. Because catastrophe bonds cover "catastrophic" events that, if they occur, will result in significant losses, catastrophe bonds carry a high degree of risk of loss and are considered "high yield" or "junk bonds." The rating, if any, primarily reflects the rating agency's calculated probability that a predefined trigger event will occur. Thus, lower-rated bonds have a greater likelihood of a triggering event occurring and loss to the Fund.

Catastrophe bonds are also subject to extension risk. The sponsor of such an investment might have the right to extend the maturity of the bond or note to verify that the trigger event did occur or to process and audit insurance claims. The typical duration of mandatory and optional extensions of maturity for reinsurance-related securities currently is between three months to two years. In certain circumstances, the extension may exceed two years. An extension to verify the potential occurrence of a trigger event will reduce the value of the bond or note due to the uncertainty of the occurrence of the trigger event and will hinder the Fund's ability to sell the bond or note. Even if it is determined that the trigger event did not occur, such an extension will delay the Fund's receipt of the bond's or note's principal and prevent the reinvestment of such proceeds in other, potentially higher yielding securities.

**Closed-End Fund Structure Risk**

Unlike open-end funds, closed-end funds like the Fund do not continuously offer shares and do not provide daily redemptions. Rather, if a shareholder determines to buy additional common shares or sell shares already held, the shareholder may do so by trading through a broker on the NYSE or otherwise. Because the market value of the common shares may be influenced by such factors as dividend levels (which are in turn affected by expenses), call protection on its portfolio securities, dividend stability, portfolio credit quality, the Fund's NAV, relative demand for and supply of such shares in the market, general market and economic conditions and other factors beyond the control of the Fund, the Fund cannot assure you that its common shares will trade at a price equal to or higher than NAV in the future. The common shares are designed primarily for long-term investors and you should not purchase the common shares if you intend to sell them soon after purchase.

**Co-investment Restrictions**

The Fund is prohibited under the Investment Company Act from participating in certain transactions with its affiliates without the prior approval of the SEC. Any person that owns, directly or indirectly, 5% or more of the Fund's outstanding voting securities will be its affiliate for purposes of the Investment Company Act and the Fund will generally be prohibited from buying or selling any securities from or to such affiliate. The Investment Company Act also prohibits certain "joint" transactions with certain of the Fund's affiliates, which could include investments in the same portfolio company (whether at the same or different times), without prior approval of the SEC. If a person acquires more than 25% of the Fund's voting securities, the Fund will be prohibited from buying or selling any security from or to such person or certain of that person's affiliates, or entering into prohibited joint transactions with such persons, absent the prior approval of the SEC. Similar restrictions limit the Fund's ability to transact business with the Fund's officers or Trustees or its affiliates. As a result of these restrictions, the Fund may be prohibited from buying or selling any security from or to any portfolio company of an investment fund managed by the Adviser or its affiliates without the prior approval of the SEC, which may limit the scope of investment opportunities that would otherwise be available to the Fund.

The Adviser has applied for an exemptive order from the SEC (the "Order") that would grant the funds managed by the Adviser or certain affiliates, the ability to fully negotiate terms of co-investment transactions with other funds managed by the Adviser or certain affiliates, subject to the conditions included therein. There is no assurance that the Adviser will receive the Order on a timely basis or at all. Until the Adviser receives the Order, the Fund will not be permitted to participate in certain investments with the Adviser's other funds or its affiliates. Even if the Order is granted, in certain situations, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which client will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. When the Fund participates in a co-investment transaction, the personnel of the Adviser allocates a portion of the investment to the Fund based on the Fund's investment objective and strategies, investment policies, investment positions, capital available for investment, and other pertinent factors. Any co-investment is made on equal footing with the funds managed by the Adviser or its affiliates, including identical terms, conditions, price, class of securities purchased, timing, and registration rights. To the extent the Fund is able to make co-investments with the Adviser's affiliates, these co-investment transactions may give rise to conflicts of interest or perceived conflicts of interest among the Fund and the other participating accounts. Moreover, except in certain circumstances, when relying on the Order, the Fund is unable to invest in any issuer in which one or more funds managed by the Adviser or its affiliates has previously invested.

The Fund may also invest alongside the Adviser's and its affiliates' other clients, including other entities they manage, which are referred to as affiliates' other clients, in certain circumstances where doing so is consistent with applicable law and SEC staff interpretations and guidance as well as the Adviser's allocation policies. However, the Fund can offer no assurance that investment opportunities will be allocated to it fairly or equitably in the short-term or over time.

In situations where co-investment with affiliates' other clients is not permitted under the Investment Company Act and related rules, existing or future staff guidance, or the terms and conditions of any exemptive relief granted to the Fund by the SEC, the Adviser will need to decide which client or clients will proceed with the investment. Generally, the Fund will not have an entitlement to make a co-investment in these circumstances and, to the extent that another client elects to proceed with the investment, the Fund will not be permitted to participate. Moreover, except in certain circumstances, the Fund is unable to invest in any issuer in which an affiliates' other client holds a controlling interest. These restrictions may limit the scope of investment opportunities that would otherwise be available to the Fund.

**Convertible Securities Risk**

Convertible securities are subject to the usual risks associated with debt instruments, such as interest rate risk (the risk of losses attributable to changes in interest rates) and credit risk (the risk that the issuer of a debt instrument will default or otherwise become unable, or be perceived to be unable or unwilling, to honor a financial obligation, such as making payments to the Fund when due). Convertible securities also react to changes in the value of the common stock into which they convert, and are thus subject to market risk (the risk that the market values of securities or other investments that the Fund holds will fall, sometimes rapidly or unpredictably, or fail to rise). Because the value of a convertible security can be influenced by both interest rates and the common stock's market movements, a convertible security generally is not as sensitive to interest rates as a similar debt instrument, and generally will not vary in value in response to other factors to the same extent as the underlying common stock. In the event of a liquidation of the issuing company, holders of convertible securities would typically be paid before the company's common stockholders but after holders of any senior debt obligations of the company. The Fund may be forced to convert a convertible security before it otherwise would choose to do so, which may decrease the Fund's return.

**Corporate Bonds Risk**

The market value of a corporate bond generally may be expected to rise and fall inversely with interest rates. The market value of intermediate and longer-term corporate bonds is generally more sensitive to changes in interest rates than is the market value of shorter-term corporate bonds. The market value of a corporate bond also may be affected by factors directly related to the issuer, such as investors' perceptions of the creditworthiness of the issuer, the issuer's financial performance, perceptions of the issuer in the market place, performance of management of the issuer, the issuer's capital structure and use of financial leverage and demand for the issuer's goods and services. There is a risk that the issuers of corporate bonds may not be able to meet their obligations on interest or principal payments at the time called for by an instrument. Corporate bonds of below investment grade quality are often high risk and have speculative characteristics and may be particularly susceptible to adverse issuer-specific developments.

**Counterparty Risk**

The risk exists that a counterparty to a transaction in a financial instrument held by the Fund or by a special purpose or structured vehicle in which the Fund invests may become insolvent or otherwise fail to perform its obligations, including making payments to the Fund, due to financial difficulties. The Fund may obtain no or limited recovery in a bankruptcy or other reorganizational proceedings, and any recovery may be significantly delayed. Transactions that the Fund enters into may involve counterparties in the financials sector and, as a result, events affecting the financials sector may cause the Fund's NAV to fluctuate.

**Credit Default Swaps Risk**

The Fund may invest in credit default swaps. A credit default swap is a contract between two parties which transfers the risk of loss if a company fails to pay principal or interest on time or files for bankruptcy. In essence, an institution which owns corporate debt instruments can purchase a limited form of default protection by entering into a credit default swap with another bank, broker-dealer or financial intermediary. Upon an event of default, the swap may be terminated in one of two ways: (i) by the purchaser of credit protection delivering the referenced instrument to the swap counterparty and receiving a payment of par value, or (ii) by the parties pairing off payments, with the purchaser of the protection receiving a payment equal to the par value of the reference security less the price at which the reference security trades subsequent to default. The first way is the more common form of credit default swap termination.

In the manner described above, credit default swaps can be used to hedge a portion of the default risk on a single corporate bond or a portfolio of bonds. Credit default swaps can be used to implement the Adviser's view that a particular credit, or group of credits, will experience credit improvement. In the case of expected credit improvement, the Fund may sell credit default protection in which it receives a premium to take on the risk. In such an instance, the obligation of the Fund to make payments upon the occurrence of a credit event creates leveraged exposure to the credit risk of the referenced entity. The Fund may also "purchase" credit default protection even in the case in which it does not own the referenced instrument if, in the judgment of the Adviser, there is a high likelihood of credit deterioration.

Credit default swap agreements involve greater risks than if the Fund had taken a position in the reference obligation directly (either by purchasing or selling) since, in addition to general market risks, credit default swaps are subject to illiquidity risk, counterparty risk and credit risks. A buyer generally will also lose its upfront payment or any periodic payments it makes to the seller counterparty and receive no payments from its counterparty should no credit event occur and the swap is held to its termination date. If a credit event were to occur, the value of any deliverable obligation received by the seller, coupled with the upfront or periodic payments previously received, may be less than the full notional amount it pays to the buyer, resulting in a loss of value to the seller. A seller of a credit default swap or similar instrument is exposed to many of the same risks of leverage since, if a credit event occurs, the seller generally will be required to pay the buyer the full notional amount of the contract net of any amounts owed by the buyer related to its delivery of deliverable obligations.

In addition, the credit derivatives market is subject to a changing regulatory environment. It is possible that regulatory or other developments in the credit derivatives market could adversely affect the Fund's ability to successfully use credit derivatives.

**Credit Risk**

Credit risk is the risk that the value of debt instruments may decline if the issuer thereof defaults or otherwise becomes unable or unwilling, or is perceived to be unable or unwilling, to honor its financial obligations, such as making payments to the Fund when due. Various factors could affect the actual or perceived willingness or ability of the issuer to make timely interest or principal payments, including changes in the financial condition of the issuer or in general economic conditions. Credit rating agencies assign credit ratings to certain debt instruments to indicate their credit risk. A rating downgrade by such agencies can negatively impact the value of such instruments. Lower quality or unrated instruments held by the Fund may present increased credit risk as compared to higher-rated instruments. Non-investment grade debt instruments may be subject to greater price fluctuations and are more likely to experience a default than investment grade debt instruments and therefore may expose the Fund to increased credit risk. If the Fund purchases unrated instruments, or if the ratings of instruments held by the Fund are lowered after purchase, the Fund will depend on analysis of credit risk more heavily than usual.

**Risks Relating to Investments in Exchange Traded Funds/Trusts that invest in cryptocurrencies or similar digital assets that utilize blockchain technology.** 

The Fund has and may in the future invest in exchange traded investment funds/trusts and other private or exchange-traded securities/instruments that invest or plan to invest in digital assets that utilize blockchain technology and the Fund may hedge such investments through the use of other securities (including other funds or securities/instruments that own virtual currencies) and derivatives of virtual currencies, in each case, to the extent permitted by, and in accordance with, any future law, regulation, guidance, or exemptive relief provided by the SEC or its staff or other regulatory agency or body having jurisdiction. The Fund expects that any such investments are likely to constitute only a small proportion of its portfolio.

**Currency Risk**

The Fund's investments that are denominated in a foreign currency are subject to the risk that the value of a particular currency will change in relation to one or more other currencies. Among the factors that may affect currency values are trade balances, the level of short-term interest rates, differences in relative values of similar assets in different currencies, long-term opportunities for investment and capital appreciation and political developments. The Adviser may try to hedge these risks by investing directly in foreign currencies, buying and selling forward foreign currency exchange contracts and buying and selling options on foreign currencies, but there can be no assurance such strategies will be effective.

**Cybersecurity Risk**

As part of its business, the Adviser processes, stores and transmits large amounts of electronic information, including information relating to the transactions of the Fund. Similarly, service providers of the Adviser, the Fund, especially the administrator, may process, store and transmit such information. The Adviser has procedures and systems in place that it believes are reasonably designed to protect such information and prevent data loss and security breaches. However, such measures cannot provide absolute security. The techniques used to obtain unauthorized access to data, disable or degrade service, or sabotage systems change frequently and may be difficult to detect for long periods of time. Hardware or software acquired from third parties may contain defects in design or manufacture or other problems that could unexpectedly compromise information security. Network connected services provided by third parties to the Adviser may be susceptible to compromise, leading to a breach of the Adviser's network. The Adviser's systems or facilities may be susceptible to employee error or malfeasance, government surveillance, or other security threats. On-line services that may be provided by the Adviser to the investors in the Fund may also be susceptible to compromise. Breach of the Adviser's information systems may cause information relating to the transactions of the Fund to be lost or improperly accessed, used or disclosed.

The service providers of the Adviser and the Fund are subject to the same electronic information security threats as the Adviser. If a service provider fails to adopt or adhere to adequate data security policies, or in the event of a breach of its networks, information relating to the transactions of the Fund and personally identifiable information of investors in the Fund may be lost or improperly accessed, used or disclosed.

The loss or improper access, use or disclosure of the Adviser's or the Fund's proprietary information may cause the Adviser or the Fund to suffer, among other things, financial loss, the disruption of its business, liability to third parties, regulatory intervention or reputational damage. Any of the foregoing events could have a material adverse effect on the Fund.

**Decision-Making Authority Risk**

Investors have no authority to make decisions or to exercise business discretion on behalf of the Fund, except as set forth in the Fund's governing documents. The authority for all such decisions is generally delegated to the Board, which in turn, has delegated the day-to-day management of the Fund's investment activities to the Adviser, subject to oversight by the Board.

**Deflation Risk**

Deflation risk is the risk that prices throughout the economy decline over time, which may have an adverse effect on the market valuation of companies, their assets and their revenues. In addition, deflation may have an adverse effect on the creditworthiness of issuers and may make issuer default more likely, which may result in a decline in the value of the Fund's portfolio.

**Defensive Investing Risk**

For defensive purposes, the Fund may allocate assets into cash or short-term fixed-income securities without limitation. In doing so, the Fund may succeed in avoiding losses but may otherwise fail to achieve its investment objectives. Further, the value of short-term fixed-income securities may be affected by changing interest rates and by changes in credit ratings of the investments. If the Fund holds cash uninvested it will be subject to the credit risk of the depository institution holding the cash.

**Depositary Receipts Risk**

Depositary receipts are receipts issued by a bank or trust company reflecting ownership of underlying securities issued by foreign companies. Some foreign securities are traded in the form of American Depositary Receipts ("ADRs") and/or Global Depositary Receipts. Depositary receipts involve risks similar to the risks associated with investments in foreign securities, including those associated with an issuer's (and any of its related companies') country of organization and places of business operations, which may be related to the particular political, regulatory, economic, social and other conditions or events (including, for example, military confrontations and actions, war, other conflicts, terrorism and disease/virus outbreaks and epidemics) occurring in the country and fluctuations in such country's currency, as well as market risk tied to the underlying foreign company. In addition, holders of depositary receipts may have limited voting rights, may not have the same rights afforded to stockholders of a typical domestic company in the event of a corporate action, such as an acquisition, merger or rights offering, and may experience difficulty in receiving company stockholder communications. There is no guarantee that a financial institution will continue to sponsor a depositary receipt, or that a depositary receipt will continue to trade on an exchange, either of which could adversely affect the liquidity, availability and pricing of the depositary receipt. Changes in foreign currency exchange rates will affect the value of depositary receipts and, therefore, may affect the value of your investment in the Fund. A potential conflict of interest exists to the extent that the Fund invests in ADRs for which the Fund's custodian serves as depository bank.

**Derivatives Risk**

Derivatives may involve significant risks. Derivatives are financial instruments, traded on an exchange or in the OTC markets, with a value in relation to, or derived from, the value of an underlying asset(s) (such as a security, commodity or currency) or other reference, such as an index, rate or other economic indicator (each an underlying reference). Derivatives may include those that are privately placed or otherwise exempt from SEC registration, including certain Rule 144A eligible securities. Derivatives could result in Fund losses if the underlying reference does not perform as anticipated. Use of derivatives is a highly specialized activity that can involve investment techniques, risks, and tax planning different from those associated with more traditional investment instruments. The Fund's derivatives strategy may not be successful and use of certain derivatives could result in substantial, potentially unlimited, losses to the Fund regardless of the Fund's actual investment. A relatively small movement in the price, rate or other economic indicator associated with the underlying reference may result in substantial loss for the Fund. Derivatives may be more volatile than other types of investments. Derivatives can increase the Fund's risk exposure to underlying references and their attendant risks, including the risk of an adverse credit event associated with the underlying reference (credit risk), the risk of an adverse movement in the value, price or rate of the underlying reference (market risk), the risk of an adverse movement in the value of underlying currencies (foreign currency risk) and the risk of an adverse movement in underlying interest rates (interest rate risk).

Derivatives may expose the Fund to additional risks, including the risk of loss due to a derivative position that is imperfectly correlated with the underlying reference it is intended to hedge or replicate (correlation risk), the risk that a counterparty will fail to perform as agreed (counterparty risk), the risk that a hedging strategy may fail to mitigate losses, and may offset gains (hedging risk), the risk that the return on an investment may not keep pace with inflation (inflation risk), the risk that losses may be greater than the amount invested (leverage risk), the risk that the Fund may be unable to sell an investment at an advantageous time or price (liquidity risk), the risk that the investment may be difficult to value (pricing risk), and the risk that the price or value of the investment fluctuates significantly over short periods of time (volatility risk). The value of derivatives may be influenced by a variety of factors, including national and international political and economic developments. Potential changes to the regulation of the derivatives markets may make derivatives more costly, may limit the market for derivatives, or may otherwise adversely affect the value or performance of derivatives.

The Fund may enter into derivative transactions that have leverage embedded in them. Derivative transactions that the Fund may enter into and the risks associated with them are described elsewhere in this Prospectus. The Fund cannot assure you that investments in derivative transactions that have leverage embedded in them will result in a higher return on its common shares.

Under Rule 18f-4 under the Investment Company Act, among other things, the Fund must either use derivatives in a limited manner or comply with an outer limit on fund leverage risk based on value-at-risk.

**Derivatives Risk - Futures Contracts Risk**

A futures contract is an exchange-traded derivative transaction between two parties in which a buyer (holding the "long" position) agrees to pay a fixed price (or rate) at a specified future date for delivery of an underlying reference from a seller (holding the "short" position). The seller hopes that the market price on the delivery date is less than the agreed upon price, while the buyer hopes for the contrary. Certain futures contract markets are highly volatile, and futures contracts may be illiquid. Futures exchanges may limit fluctuations in futures contract prices by imposing a maximum permissible daily price movement. The Fund may be disadvantaged if it is prohibited from executing a trade outside the daily permissible price movement. At or prior to maturity of a futures contract, the Fund may enter into an offsetting contract and may incur a loss to the extent there has been adverse movement in futures contract prices. The liquidity of the futures markets depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants make or take delivery, liquidity in the futures market could be reduced. Positions in futures contracts may be closed out only on the exchange on which they were entered into or through a linked exchange, and no secondary market exists for such contracts. Futures positions are marked to market each day and variation margin payment must be paid to or by the Fund. Because of the low margin deposits normally required in futures trading, it is possible that the Fund may employ a high degree of leverage in the portfolio. As a result, a relatively small price movement in a futures contract may result in substantial losses to the Fund, exceeding the amount of the margin paid. For certain types of futures contracts, losses are potentially unlimited. Futures markets are highly volatile and the use of futures may increase the volatility of the Fund's NAV. Futures contracts executed (if any) on foreign exchanges may not provide the same protection as U.S. exchanges. Futures contracts can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk and interest rate risk, while also exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

**Derivatives Risk - Options Risk**

Options are derivatives that give the purchaser the option to buy (call) or sell (put) an underlying reference from or to a counterparty at a specified price (the strike price) on or before an expiration date. When writing options, the Fund is exposed to the risk that it may be required to buy or sell the underlying reference at a disadvantageous price on or before the expiration date. Options may involve economic leverage, which could result in greater volatility in price movement. The Fund's losses could be significant, and are potentially unlimited for certain types of options. Options may be traded on a securities exchange or in the over-the-counter market. At or prior to maturity of an options contract, the Fund may enter into an offsetting contract and may incur a loss to the extent there has been adverse movement in options prices. Options can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk and interest rate risk, while potentially exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

**Derivatives Risk - Regulation** 

There are many rules related to derivatives that may negatively impact the Fund, such as requirements related to recordkeeping, reporting, portfolio reconciliation, central clearing, minimum margin for uncleared over-the- counter instruments and mandatory trading on electronic facilities, and other transaction-level obligations. Parties that act as dealers in swaps, are also subject to extensive business conduct standards, additional "know your counterparty" obligations, documentation standards and capital requirements. All of these requirements add costs to the legal, operational and compliance obligations of the Adviser and the Fund, and increase the amount of time that the Adviser spends on non-investment-related activities. Requirements such as these also raise the costs of entering into derivative transactions, and these increased costs will likely be passed on to the Fund.

These rules are operationally and technologically burdensome for the Adviser and the Fund. These compliance obligations require employee training and use of technology, and there are operational risks borne by the Fund in implementing procedures to comply with many of these additional obligations.

These regulations may also result in the Fund forgoing the use of certain trading counterparties (such as broker-dealers and futures commission merchants ("FCMs")), as the use of other parties may be more efficient for the Fund from a regulatory perspective. However, this could limit the Fund's trading activities, create losses, preclude the Fund from engaging in certain transactions or prevent the Fund from trading at optimal rates and terms.

Many of these requirements were implemented under legislation intended to reform the U.S. financial regulatory system, the EU Regulation on OTC Derivatives, Central Counterparties and Trade Repositories (known as the European Market Infrastructure Regulation, or "EMIR") and similar regulations globally. In the United States, regulatory responsibility for derivatives is divided between the SEC and the Commodities Futures Trading Commission ("CFTC"), a distinction that does not exist in any other jurisdiction. The SEC has regulatory authority over "security-based swaps" and the CFTC has regulatory authority over "swaps". EMIR is being implemented in phases through the adoption of delegated acts by the European Commission. As a result of the SEC and CFTC bifurcation and the different pace at which the SEC, the CFTC, the European Commission and other international regulators have promulgated necessary regulations, different transactions are subject to different levels of regulation. Though many rules and regulations have been finalized, there are others, particularly SEC regulations with respect to security-based swaps that are still in the proposal stage or are expected to be introduced in the future.

**Derivatives Risk - Swaps Risk** 

In a typical swap transaction, two parties agree to exchange the return earned on a specified underlying reference for a fixed return or the return from another underlying reference during a specified period of time. Swaps may be difficult to value and may be illiquid. Swaps could result in Fund losses if the underlying asset or reference does not perform as anticipated. Swaps create significant investment leverage such that a relatively small price movement in a swap may result in immediate and substantial losses to the Fund. The Fund may only close out a swap with its particular counterparty and may only transfer a position with the consent of that counterparty. Certain swaps, such as short swap transactions and total return swaps, have the potential for unlimited losses, regardless of the size of the initial position. Swaps can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk and interest rate risk, while potentially exposing the Fund to leverage risk, counterparty risk (i.e., the risk of counterparty default on its obligations under the swap agreement), illiquidity risk, valuation risk and volatility risk.

**Digital Assets Risk**

The Fund may invest in private funds or other investment companies with exposure to cryptocurrency. The Fund may also invest directly in digital assets, subject to applicable legal and regulatory limitations (which are presently evolving). Bitcoin is a cryptocurrency, which is a type of digital asset. A cryptocurrency, like bitcoin, is a peer-to-peer, decentralized, digital currency the implementation of which relies on the principles of cryptography to validate the transactions and generation of the currency itself. The creation and use of digital assets is not currently subject to a fully-developed set of legal or regulatory requirements, and trading in digital assets is subject to high levels of volatility and the potential for market abuse. Digital assets exist entirely in electronic form, as entries in decentralized (or "distributed") digital ledgers. The ledgers themselves, as well as the private encryption keys used to access digital asset balances, are held on hardware (which can be physically controlled by the holder or by a third party) or via software programs on third-party servers, and as such are susceptible to all of the risks inherent in holding any electronic data, such as power failure, data corruption, security breach, communication failure, and user error, among others. Accordingly, digital assets are subject to theft, destruction, or loss of value from hackers, corruption, or technology-specific factors such as viruses that do not affect traditional currency, which is underwritten by central banks and monetary authorities.

Transactions in digital assets are recorded and authenticated not by a central repository, but by a peer-to-peer network. While decentralization avoids certain common threats to computer networks (*e.g.*, denial of service attacks), the use of a peer-to-peer system relies on participants in the network having greater numbers and computing power than coordinated attackers. This authentication strategy necessitates investment in substantial amounts of computing power, which in turn increases the burdens on participants in the network to stay ahead of attackers. If and as the popularity of bitcoin increases, the burdens on participants in the network (which are defrayed by transaction costs) can be expected to increase, which may reduce the value of bitcoins held by the Fund.

Transactions in digital assets also provide a high degree of anonymity, making them susceptible to misuse for criminal activities, such as money laundering. This misuse, or the perception of such misuse (even if untrue), could lead law enforcement agencies to close digital asset exchange platforms or other digital asset-related infrastructure with little or no notice and prevent users (such as the Fund) from accessing or retrieving digital assets held via such platforms or infrastructure. Fund investments in digital assets may also have adverse tax ramifications. For example, digital assets such as cryptocurrencies and nonfungible tokens ("NFTs") are classified as property and not currency for tax purposes. Accordingly, they will be subject to capital gains, income taxes and other types of taxes, depending on the transaction. Digital assets that are traded within one year will be taxed at ordinary income tax rates and NFTs may be taxed as collectibles, which are subject to a higher long-term capital gains tax rate.

**Distressed and Defaulted Securities Risk**

Investments in the securities of financially distressed issuers are speculative and involve substantial risks. These securities may present a substantial risk of default or may be in default at the time of investment. The Fund may incur additional expenses to the extent it is required to seek recovery upon a default in the payment of principal or interest on its portfolio holdings. In any reorganization or liquidation proceeding relating to a portfolio company, the Fund may lose its entire investment or may be required to accept cash or securities with a value less than its original investment. Among the risks inherent in investments in a troubled entity is that it frequently may be difficult to obtain information as to the true financial condition of such issuer. The Adviser's judgment about the credit quality of the issuer and the relative value and liquidity of its securities may prove to be wrong. Distressed securities and any securities received in an exchange for such securities may be subject to restrictions on resale.

**Equity Securities Risk** 

The Fund expects to buy and sell private and public equity securities. The value of equity securities of public and private, listed and unlisted companies and equity derivatives generally varies with the performance of the issuer and movements in the equity markets. As a result, the Fund may suffer losses if it invests in equity instruments of issuers whose performance diverges from the Adviser's expectations or if equity markets generally move in a single direction and the Fund has not hedged against such a general move. The Fund also may be exposed to risks that issuers will not fulfill contractual obligations such as, in the case of convertible securities or private placements, delivering marketable common stock upon conversions of convertible securities and registering restricted securities for public resale.

**Emerging Market Securities Risk**

Securities issued by foreign governments or companies in emerging market countries, such as China, Russia and certain countries in Eastern Europe, the Middle East, Asia, Latin America or Africa, are more likely to have greater exposure to the risks of investing in foreign securities that are described in Foreign Securities Risk. In addition, emerging market countries are more likely to experience instability resulting, for example, from rapid changes or developments in social, political, economic or other conditions. Their economies are usually less mature and their securities markets are typically less developed with more limited trading activity (*i.e.*, lower trading volumes and less liquidity) than more developed countries. Emerging market securities tend to be more volatile than securities in more developed markets. Many emerging market countries are heavily dependent on international trade and have fewer trading partners, which makes them more sensitive to world commodity prices and economic downturns in other countries. Some emerging market countries have a higher risk of currency devaluations, and some of these countries may experience periods of high inflation or rapid changes in inflation rates and may have hostile relations with other countries.

**Exchange Traded Fund Risk**

Investments in ETFs have unique characteristics, including, but not limited to, the expense structure and additional expenses associated with investing in ETFs. An ETF's share price may not track its specified market index (if any) and may trade below its NAV, particularly during times of market stress. Certain ETFs use a "passive" investment strategy and do not take defensive positions in volatile or declining markets. Other ETFs in which the Fund may invest are actively managed ETFs (i.e., they do not track a particular benchmark), which indirectly subjects the Fund to active management risk. An active secondary market in an ETF's shares may not develop or be maintained and may be halted or interrupted due to actions by its listing exchange, unusual market conditions or other reasons. There can be no assurance an ETF's shares will continue to be listed on an active exchange. In addition, the Fund's shareholders bear both their proportionate share of the Fund's expenses and, indirectly, the ETF's expenses, incurred through the Fund's ownership of the ETF. Because the expenses and costs of an underlying ETF are shared by its investors, redemptions by other investors in the ETF could result in decreased economies of scale and increased operating expenses for such ETF. These transactions might also result in higher brokerage, tax or other costs for the ETF. This risk may be particularly important when one investor owns a substantial portion of the ETF.

The Funds generally expect to purchase shares of ETFs through broker-dealers in transactions on a securities exchange, and in such cases the Funds will pay customary brokerage commissions for each purchase and sale. Shares of an ETF may also be acquired by depositing a specified portfolio of the ETF's underlying securities, as well as a cash payment generally equal to accumulated dividends of the securities (net of expenses) up to the time of deposit, with the ETF's custodian, in exchange for which the ETF will issue a quantity of new shares sometimes referred to as a "creation unit." Similarly, shares of an ETF purchased on an exchange may be accumulated until they represent a creation unit, and the creation unit may be redeemed in-kind for a portfolio of the underlying securities (based on the ETF's NAV) together with a cash payment generally equal to accumulated dividends as of the date of redemption. The Funds may redeem creation units for the underlying securities (and any applicable cash), and may assemble a portfolio of the underlying securities (and any required cash) to purchase creation units. The Funds' ability to redeem creation units may be limited by the Investment Company Act, which provides that ETFs, the shares of which are purchased in reliance on Section 12(d)(1)(F) of the Investment Company Act, will not be obligated to redeem such shares in an amount exceeding one percent of their total outstanding securities during any period of less than 30 days.

**Failures of Futures Commission Merchants and Clearing Organizations Risk**

The Fund is required to deposit funds to margin open positions in cleared derivative instruments (both futures and swaps) with a clearing broker registered as a "futures commission merchant" ("FCM"). The Commodity Exchange Act (the "CEA") requires an FCM to segregate all funds received from customers with respect to any orders for the purchase or sale of U.S. domestic futures contracts and cleared swaps from the FCM's proprietary assets. Similarly, the CEA requires each FCM to hold in a separate secure account all funds received from customers with respect to any orders for the purchase or sale of foreign futures contracts and segregate any such funds from the funds received with respect to domestic futures contracts. However, all funds and other property received by an FCM from its customers are held by an FCM on a commingled basis in an omnibus account and amounts in excess of assets posted to the clearing organization may be invested by an FCM in certain instruments permitted under the applicable regulation. There is a risk that assets deposited by the Fund with any FCM as margin for futures contracts may, in certain circumstances, be used to satisfy losses of other clients of the Fund's FCM. In addition, the assets of the Fund posted as margin against both swaps and futures contracts may not be fully protected in the event of the FCM's bankruptcy.

**Foreign Securities Risk**

Investments in or exposure to foreign securities involve certain risks not associated with investments in or exposure to securities of U.S. companies. For example, foreign markets can be extremely volatile. Foreign securities may also be less liquid, making them more difficult to trade, than securities of U.S. companies so that the Fund may, at times, be unable to sell foreign securities at desirable times or prices. Brokerage commissions, custodial costs and other fees are also generally higher for foreign securities. The Fund may have limited or no legal recourse in the event of default with respect to certain foreign securities, including those issued by foreign governments. In addition, foreign governments may impose withholding or other taxes on the Fund's income, capital gains or proceeds from the disposition of foreign securities, which could reduce the Fund's return on such securities. In some cases, such withholding or other taxes could potentially be confiscatory. Other risks include: possible delays in the settlement of transactions or in the payment of income; generally less publicly available information about foreign companies; the impact of economic, political, social, diplomatic or other conditions or events (including, for example, military confrontations, war, terrorism and disease/virus outbreaks and epidemics), possible seizure, expropriation or nationalization of a company or its assets or the assets of a particular investor or category of investors; accounting, auditing and financial reporting standards that may be less comprehensive and stringent than those applicable to domestic companies; the imposition of economic and other sanctions against a particular foreign country, its nationals or industries or businesses within the country; and the generally less stringent standard of care to which local agents may be held in the local markets. In addition, it may be difficult to obtain reliable information about the securities and business operations of certain foreign issuers. Governments or trade groups may compel local agents to hold securities in designated depositories that are not subject to independent evaluation. The less developed a country's securities market is, the greater the level of risks.

The risks posed by sanctions against a particular foreign country, its nationals or industries or businesses within the country may be heightened to the extent the Fund invests significantly in the affected country or region or in issuers from the affected country that depend on global markets. Additionally, investments in certain countries may subject the Fund to a number of tax rules, the application of which may be uncertain. Countries may amend or revise their existing tax laws, regulations and/or procedures in the future, possibly with retroactive effect. Changes in or uncertainties regarding the laws, regulations or procedures of a country could reduce the after-tax profits of the Fund, directly or indirectly, including by reducing the after-tax profits of companies located in such countries in which the Fund invests, or result in unexpected tax liabilities for the Fund. The performance of the Fund may also be negatively affected by fluctuations in a foreign currency's strength or weakness relative to the U.S. dollar, particularly to the extent the Fund invests a significant percentage of its assets in foreign securities or other assets denominated in currencies other than the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in interest rates, imposition of currency exchange controls and economic or political developments in the U.S. or abroad. The Fund may also incur currency conversion costs when converting foreign currencies into U.S. dollars and vice versa.

**Frequent Trading Risk**

The portfolio managers may actively and frequently trade investments in the Fund's portfolio to carry out its investment strategies. Frequent trading of investments increases the possibility that the Fund, as relevant, will realize taxable capital gains (including short-term capital gains, which are generally taxable to shareholders at higher rates than long-term capital gains for U.S. federal income tax purposes), which could reduce the Fund's after-tax return. Frequent trading can also mean higher brokerage and other transaction costs, which could reduce the Fund's return. The trading costs and tax effects associated with portfolio turnover may adversely affect the Fund's performance.

**Government Interventions Risk** 

Extreme volatility and illiquidity in markets has in the past led to, and may in the future lead to, extensive governmental interventions in equity, debt, credit and currency markets. Generally, such interventions are intended to reduce volatility and precipitous drops in value. In certain cases, governments have intervened on an "emergency" basis, suddenly and substantially eliminating market participants' ability to continue to implement certain strategies or manage the risk of their outstanding positions. In addition, these interventions have typically been unclear in scope and application, resulting in uncertainty. It is impossible to predict when these restrictions will be imposed, what the interim or permanent restrictions will be and/or the effect of such restrictions on the Fund's strategies.

**Hedging Transactions**

The Fund may utilize financial instruments, both for investment purposes and for risk management purposes in order to (i) protect against possible changes in the market value of the Fund's investment portfolio resulting from fluctuations in the securities markets and changes in interest rates; (ii) protect the Fund's unrealized gains in the value of the Fund's investment portfolio; (iii) facilitate the sale of any such investments; (iv) enhance or preserve returns, spreads or gains on any investment in the Fund's portfolio; (v) hedge the interest rate or currency exchange rate on any of the Fund's liabilities or assets; (vi) protect against any increase in the price of any securities the Fund anticipates purchasing at a later date or (vii) for any other reason that the Adviser deems appropriate.

The success of the Fund's hedging strategy will depend, in part, upon the Adviser's ability to correctly assess the degree of correlation between the performance of the instruments used in the hedging strategy and the performance of the portfolio investments being hedged. Since the characteristics of many securities change as markets change or time passes, the success of the Fund's hedging strategy will also be subject to the Adviser's ability to continually recalculate, readjust and execute hedges in an efficient and timely manner. While the Fund may enter into hedging transactions to seek to reduce risk, such transactions may result in a poorer overall performance for the Fund than if it had not engaged in such hedging transactions. For a variety of reasons, the Adviser may not seek to establish a perfect correlation between the hedging instruments utilized and the portfolio holdings being hedged. Such an imperfect correlation may prevent the Fund from achieving the intended hedge or expose the Fund to risk of loss. The Adviser may not hedge against a particular risk because it does not regard the probability of the risk occurring to be sufficiently high as to justify the cost of the hedge, or because it does not foresee the occurrence of the risk. The successful utilization of hedging and risk management transactions requires skills complementary to those needed in the selection of the Fund's portfolio holdings.

**High-Yield Investments Risk**

Securities and other debt instruments held by the Fund that are rated below investment grade (commonly called "high-yield" or "junk" bonds) and unrated debt instruments of comparable quality tend to be more sensitive to credit risk than higher-rated debt instruments and may experience greater price fluctuations in response to perceived changes in the ability of the issuing entity or obligor to pay interest and principal when due than to changes in interest rates. These investments are generally more likely to experience a default than higher-rated debt instruments. High-yield debt instruments are considered to be predominantly speculative with respect to the issuer's capacity to pay interest and repay principal. These debt instruments typically pay a premium - a higher interest rate or yield - because of the increased risk of loss, including default. High-yield debt instruments may require a greater degree of judgment to establish a price, may be difficult to sell at the time and price the Fund desires, may carry high transaction costs, and also are generally less liquid than higher-rated debt instruments. The ratings provided by third party rating agencies are based on analyses by these ratings agencies of the credit quality of the debt instruments and may not take into account every risk related to whether interest or principal will be timely repaid. In adverse economic and other circumstances, issuers of lower-rated debt instruments are more likely to have difficulty making principal and interest payments than issuers of higher-rated debt instruments.

**Illiquid Investments Risk**

The Fund may invest in securities, bank debt, private funds and companies, other assets and/or third-party managers and other claims, which are subject to legal or other restrictions on transfer or for which no liquid market exists. The market prices, if any, for such investments tend to be volatile and may not be readily ascertainable, and the Fund may not be able to execute a buy or sell order on exchanges at the desired price or to liquidate an open position due to market conditions, including the operation of daily price fluctuation limits. The sale of restricted and illiquid securities often requires more time and results in higher brokerage charges or dealer discounts and other selling expenses than does the sale of securities eligible for trading on national securities exchanges or in the over-the-counter markets. The Fund may not be able to readily dispose of such illiquid investments and, in some cases, may be contractually prohibited from disposing of such investments for a specified period of time. If trading on an exchange is suspended or restricted, the Fund may not be able to execute trades or close out positions on terms that the Adviser believes are desirable. Realization of value from such investments may be difficult in the short-term, or may have to be made at a substantial discount compared to other freely tradable investments. An investment in the Fund is suitable only for certain sophisticated investors who do not require immediate liquidity for their investments.

**Inflation Risk**

Inflation risk is the risk that the value of assets or income from investment will be worth less in the future, as inflation decreases the value of money. As inflation increases, the real value of the common shares and distributions on those shares can decline. In addition, during any periods of rising inflation, interest rates on any borrowings by the Fund would likely increase, which would tend to further reduce returns to the holders of common shares.

**Inflation-Indexed Bonds Risk**

The Fund may invest in inflation-indexed bonds, which are fixed-income securities or other instruments whose principal value is periodically adjusted according to the rate of inflation. Two structures are common. The U.S. Treasury and some other issuers use a structure that accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price Index ("CPI") accruals as part of a semi-annual coupon.

Inflation-indexed securities issued by the U.S. Treasury have maturities of five, ten or thirty years, although it is possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on a semi-annual basis, equal to a fixed percentage of the inflation-adjusted principal amount. For example, if the Fund purchased an inflation-indexed bond with a par value of $1,000 and a 3% real rate of return coupon (payable 1.5% semi-annually), and inflation over the first six months was 1%, the mid-year par value of the bond would be $1,010 and the first semiannual interest payment would be $15.15 ($1,010 times 1.5%). If inflation during the second half of the year resulted in the whole year's inflation equaling 3%, the end-of-year par value of the bond would be $1,030 and the second semi-annual interest payment would be $15.45 ($1,030 times 1.5%).

If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and, consequently, the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Repayment of the original bond principal upon maturity (as adjusted for inflation) is guaranteed in the case of U.S. Treasury inflation-indexed bonds, even during a period of deflation. However, the current market value of the bonds is not guaranteed, and will fluctuate. The Fund may also invest in other inflation related bonds which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal. In addition, if the Fund purchases inflation-indexed bonds offered by foreign issuers, the rate of inflation measured by the foreign inflation index may not be correlated to the rate of inflation in the United States.

The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates, in turn, are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if inflation were to rise at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increased at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. There can be no assurance, however, that the value of inflation-indexed bonds will be directly correlated to changes in interest rates.

While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond's inflation measure.

In general, the measure used to determine the periodic adjustment of U.S. inflation-indexed bonds is the Consumer Price Index for Urban Consumers ("CPI-U"), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to reflect a comparable inflation index, calculated by that government. There can be no assurance that the CPI-U or any foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the United States.

Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

**Information Technology Systems Risk**

The Fund is dependent on the Adviser for certain management services as well as back-office functions. The Adviser depends on information technology systems in order to assess investment opportunities, strategies and markets and to monitor and control risks for the Fund. It is possible that a failure of some kind which causes disruptions to these information technology systems could materially limit the Adviser's ability to adequately assess and adjust investments, formulate strategies and provide adequate risk control. Any such information technology-related difficulty could harm the performance of the Fund. Further, failure of the back-office functions of the Adviser to process trades in a timely fashion could prejudice the investment performance of the Fund.

**Interest Rate Risk**

Interest rate risk is the risk of losses attributable to changes in interest rates. In general, if prevailing interest rates rise, the values of debt instruments tend to fall, and if interest rates fall, the values of debt instruments tend to rise. Changes in the value of a debt instrument usually will not affect the amount of income the Fund receives from it but will generally affect the value of your investment in the Fund. Changes in interest rates may also affect the liquidity of the Fund's investments in debt instruments. In general, the longer the maturity or duration of a debt instrument, the greater its sensitivity to changes in interest rates. Interest rate declines also may increase prepayments of debt obligations, which, in turn, would increase prepayment risk (the risk that the Fund will have to reinvest the money received in securities that have lower yields). Very low or negative interest rates may prevent the Fund from generating positive returns and may increase the risk that, if followed by rising interest rates, the Fund's performance will be negatively impacted. The Fund is subject to the risk that the income generated by its investments may not keep pace with inflation. Actions by governments and central banking authorities can result in increases in interest rates. Such actions may negatively affect the value of debt instruments held by the Fund, resulting in a negative impact on the Fund's performance and NAV. Any interest rate increases could cause the value of the Fund's investments in debt instruments to decrease. Rising interest rates may prompt redemptions from the Fund, which may force the Fund to sell investments at a time when it is not advantageous to do so, which could result in losses.

**Issuer Risk**

An issuer in which the Fund invests or to which it has exposure may perform poorly or below expectations, and the value of its securities may therefore decline, which may negatively affect the Fund's performance. Underperformance of an issuer may be caused by poor management decisions, competitive pressures, breakthroughs in technology, reliance on suppliers, labor problems or shortages, corporate restructurings, fraudulent disclosures, natural disasters, military confrontations, war, terrorism, disease/virus outbreaks, epidemics or other events, conditions and factors which may impair the value of an investment in the Fund and could result in increased premiums or discounts to the Fund's net asset value.

**Investment Company Act Regulations Risk**

The Fund is a registered closed-end management investment company and as such is subject to regulations under the Investment Company Act. Generally speaking, any contract or provision thereof that is made, or where performance involves a violation of the Investment Company Act or any rule or regulation thereunder is unenforceable by either party unless a court finds otherwise.

**Legal, Tax and Regulatory Risks**

Legal, tax and regulatory changes could occur that may have material adverse effects on the Fund.

To qualify for the favorable U.S. federal income tax treatment generally accorded to RICs, the Fund must, among other things, derive in each taxable year at least 90% of its gross income from certain prescribed sources and distribute for each taxable year at least 90% of its "investment company taxable income" (generally, ordinary income plus the excess, if any, of net short-term capital gain over net long-term capital loss). If for any taxable year the Fund does not qualify as a RIC, all of its taxable income for that year (including its net capital gain) would be subject to tax at regular corporate rates without any deduction for distributions to shareholders, and such distributions would be taxable as ordinary dividends to the extent of the Fund's current and accumulated earnings and profits.

The current presidential administration has called for significant changes to U.S. fiscal, tax, trade, healthcare, immigration, foreign, and government regulatory policy. In this regard, there is significant uncertainty with respect to legislation, regulation and government policy at the federal level, as well as the state and local levels. Recent events have created a climate of heightened uncertainty and introduced new and difficult-to-quantify macroeconomic and political risks with potentially far-reaching implications. There has been a corresponding meaningful increase in the uncertainty surrounding interest rates, inflation, foreign exchange rates, trade volumes and fiscal and monetary policy. To the extent the U.S. Congress or the current presidential administration implements changes to U.S. policy, those changes may impact, among other things, the U.S. and global economy, international trade and relations, unemployment, immigration, corporate taxes, healthcare, the U.S. regulatory environment, inflation and other areas. Although the Fund cannot predict the impact, if any, of these changes to the Fund's business, they could adversely affect the Fund's business, financial condition, operating results and cash flows. Until the Fund knows what policy changes are made and how those changes impact the Fund's business and the business of the Fund's competitors over the long term, the Fund will not know if, overall, the Fund will benefit from them or be negatively affected by them.

The rules dealing with U.S. federal income taxation are constantly under review by persons involved in the legislative process and by the Internal Revenue Service and the U.S. Treasury Department. Revisions in U.S. federal tax laws and interpretations of these laws could adversely affect the tax consequences of your investment.

**Leverage Risk**

The Fund uses leverage through direct borrowings (e.g., through its Facility) and through any of the financial instruments described herein, including derivative instruments (such as options and swaps), which are inherently leveraged and trading in products with embedded leverage such as short sales and forwards. The instruments and borrowings utilized by the Fund to leverage investments are typically collateralized by the Fund's portfolio.

The use of leverage will magnify the volatility of changes in the value of the investments of the Fund. Accordingly, any event which adversely affects the value of an investment would be magnified to the extent the investment is leveraged. The cumulative effect of the use of leverage by the Fund in a market that moves adversely to its investments could result in substantial losses to the Fund, which would be greater than if the Fund was not leveraged.

While leverage increases the buying power of the Fund and presents opportunities for increasing total returns, it has the effect of potentially increasing losses as well. For example, funds borrowed for leveraging will be subject to interest, transaction and other costs, and other types of leverage also involve transaction and other costs. Any such costs may or may not be recovered by the return on the Fund's portfolio. Leverage will increase the investment return of the Fund if an investment purchased with or utilizing leverage earns a greater return than the cost to the Fund of such leverage. The use of leverage will decrease the investment return if the Fund fails to recover the cost of such leverage.

**Management Risk**

The Fund is subject to management risk because it is an actively managed investment portfolio. The Adviser and the individual portfolio managers will apply investment techniques and risk analyses in making investment decisions for the Fund, but there can be no guarantee that these will produce the desired results. The Fund may be subject to a relatively high level of management risk because the Fund may invest in derivative instruments, which may be highly specialized instruments that require investment techniques and risk analyses different from those associated with equities and bonds.

**Market Risk.**

The Fund may incur losses due to declines in the value of one or more securities in which it invests. These declines may be due to factors affecting a particular issuer, or the result of, among other things, political, regulatory, market, economic or social developments affecting the relevant market(s) more generally. In addition, turbulence in financial markets and reduced liquidity in equity, credit and/or fixed income markets may negatively affect many issuers, which could adversely affect the Fund's ability to price or value hard-to-value assets in thinly traded and closed markets and could cause significant redemptions and operational challenges. Global economies and financial markets are increasingly interconnected, and conditions and events in one country, region or financial market may adversely impact issuers in a different country, region or financial market. These risks may be magnified if certain events or developments adversely interrupt the global supply chain; in these and other circumstances, such risks might affect companies worldwide. As a result, local, regional or global events such as terrorism, war, other conflicts, natural disasters, disease/virus outbreaks and epidemics or other public health issues, recessions, depressions or other events - or the potential for such events - could have a significant negative impact on global economic and market conditions.

**Market Disruption and Geopolitical Risk**

The occurrence of events similar to those in recent years, such as in Afghanistan, Pakistan, Egypt, Libya, Syria and the Middle East, international war or conflict (including the Israel-Hamas and Russia-Ukraine wars), new and ongoing epidemics and pandemics of infectious diseases and other global health events, natural/environmental disasters, terrorist attacks in the United States and around the world, social and political discord, debt crises (such as the Greek crisis), sovereign debt downgrades, the Russian invasion of Ukraine, increasingly strained relations between the United States and a number of foreign countries, including historical adversaries, such as North Korea, Iran, China and Russia, and the international community generally, new and continued political unrest in various countries, such as Venezuela and Spain, the exit or potential exit of one or more countries from the EU or the EMU, and continued changes in the balance of political power among and within the branches of the U.S. government, among others, may result in market volatility, may have long term effects on the U.S. and worldwide financial markets, and may cause further economic uncertainties in the United States and worldwide.

China and the United States have each imposed tariffs on the other country's products. These actions may cause a significant reduction in international trade, the oversupply of certain manufactured goods, substantial price reductions of goods and possible failure of individual companies and/or large segments of China's export industry, which could have a negative impact on the Fund's performance. U.S. companies that source material and goods from China and those that make large amounts of sales in China would be particularly vulnerable to an escalation of trade tensions. Uncertainty regarding the outcome of the trade tensions and the potential for a trade war could cause the U.S. dollar to decline against safe haven currencies, such as the Japanese yen and the euro. Events such as these and their consequences are difficult to predict and it is unclear whether further tariffs may be imposed or other escalating actions may be taken in the future.

Cybersecurity incidents affecting particular companies or industries may adversely affect the economies of particular countries, regions or parts of the world in which the Fund invests.

The occurrence of any of these above events could have a significant adverse impact on the value and risk profile of the Fund's portfolio. The Fund does not know how long the securities markets may be affected by similar events and cannot predict the effects of similar events in the future on the U.S. economy and securities markets. There can be no assurance that similar events and other market disruptions will not have other material and adverse implications.

**Money Market Fund Investment Risk**

The Fund may invest in money market funds. An investment in a money market fund is not a bank deposit and is not insured or guaranteed by any bank, the FDIC or any other government agency. Certain money market funds float their NAV while others seek to preserve the value of investments at a stable NAV (typically $1.00 per share). An investment in a money market fund, even an investment in a fund seeking to maintain a stable NAV per share, is not guaranteed and it is possible for the Fund to lose money by investing in these and other types of money market funds. Certain money market funds must impose a mandatory liquidity fee on redemptions if daily net redemptions exceed 5% of their net assets and certain money market funds may impose a discretionary liquidity fee of up to 2% on redemptions if that fee is determined to be in the best interests of the money market fund. The amount of any mandatory liquidity fee will represent a good faith estimate of the costs of liquidating a pro rata portion of each of the money market fund's portfolio holdings to meet the redemptions, or 1% of the value of the shares redeemed if such an amount cannot be estimated. Such fees, if imposed, will reduce the amount the Fund receives on redemptions. In addition to the fees and expenses that the Fund directly bears, the Fund indirectly bears the fees and expenses of any money market funds in which it invests, including affiliated money market funds. By investing in a money market fund, the Fund will be exposed to the investment risks of the money market fund in direct proportion to such investment. The money market fund may not achieve its investment objective. The Fund, through its investment in the money market fund, may not achieve its investment objective. To the extent the Fund invests in instruments such as derivatives, the Fund may hold investments, which may be significant, in money market fund shares to cover its obligations resulting from the Fund's investments in such instruments. Money market funds and the securities they invest in are subject to comprehensive regulations. The enactment of new legislation or regulations, as well as changes in interpretation and enforcement of current laws, may affect the manner of operation, performance and/or yield of money market funds.

**Mortgage- and other Asset-Backed Instruments Risk**

The value of any mortgage-backed and other asset-backed instruments including collateralized debt obligations and collateralized loan obligations, if any, held by the Fund may be affected by, among other things, changes or perceived changes in: interest rates; factors concerning the interests in and structure of the issuer or the originator of the mortgages or other assets; the creditworthiness of the entities that provide any supporting letters of credit, surety bonds or other credit enhancements; or the market's assessment of the quality of underlying assets. Mortgage-backed instruments represent interests in, or are backed by, pools of mortgages from which payments of interest and principal (net of fees paid to the issuer or guarantor of the instruments) are distributed to the holders of the mortgage-backed instruments. Other types of asset-backed securities typically represent interests in, or are backed by, pools of receivables such as credit, automobile, student and home equity loans. Mortgage- and other asset-backed instruments can have a fixed or an adjustable rate. Mortgage-and other asset-backed instruments are subject to liquidity risk (the risk that it may not be possible for the Fund to liquidate the instrument at an advantageous time or price) and prepayment risk (the risk that the underlying mortgage or other asset may be refinanced or prepaid prior to maturity during periods of declining or low interest rates, causing the Fund to have to reinvest the money received in securities that have lower yields). In addition, the impact of prepayments on the value of mortgage- and other asset-backed instruments may be difficult to predict and may result in greater volatility. A decline or flattening of housing values may cause delinquencies in mortgages (especially sub-prime or non-prime mortgages) underlying mortgage-backed instruments and thereby adversely affect the ability of the mortgage-backed instruments issuer to make principal and/or interest payments to mortgage-backed instrument holders, including the Fund. Rising or high interest rates tend to extend the duration of mortgage-and other asset-backed instruments, making them more volatile and more sensitive to changes in interest rates.

Payment of principal and interest on some mortgage-backed instruments (but not the market value of the instruments themselves) may be guaranteed (i) by the full faith and credit of the U.S. Government (in the case of securities guaranteed by the Government National Mortgage Association) or (ii) by its agencies, authorities, enterprises or instrumentalities (in the case of securities guaranteed by the FNMA or the FHLMC), which are not insured or guaranteed by the U.S. Government (although FNMA and FHLMC may be able to access capital from the U.S. Treasury to meet their obligations under such securities). Mortgage-backed instruments issued by non-governmental issuers (such as commercial banks, savings and loan institutions, private mortgage insurance companies, mortgage bankers and other secondary market issuers) may be supported by various credit enhancements, such as pool insurance, guarantees issued by governmental entities, letters of credit from a bank or senior/subordinated structures, and may entail greater risk than obligations guaranteed by the U.S. Government, whether or not such obligations are guaranteed by the private issuer.

**Municipal Securities Risk**

Municipal securities are debt obligations generally issued to obtain funds for various public purposes, including general financing for state and local governments, or financing for a specific project or public facility, and include obligations of the governments of the U.S. territories, commonwealths and possessions such as Guam, Puerto Rico and the U.S. Virgin Islands to the extent such obligations are exempt from state and U.S. federal income taxes. The value of municipal securities can be significantly affected by actual or expected political and legislative changes at the federal or state level. Municipal securities may be fully or partially backed by the taxing authority of the local government, by the credit of a private issuer, by the current or anticipated revenues from a specific project or specific assets or by domestic or foreign entities providing credit support, such as letters of credit, guarantees or insurance, and are generally classified into general obligation bonds and special revenue obligations. General obligation bonds are backed by an issuer's taxing authority and may be vulnerable to limits on a government's power or ability to raise revenue or increase taxes. They may also depend for payment on legislative appropriation and/or funding or other support from other governmental bodies. Revenue obligations are payable from revenues generated by a particular project or other revenue source, and are typically subject to greater risk of default than general obligation bonds because investors can look only to the revenue generated by the project or other revenue source backing the project, rather than to the general taxing authority of the state or local government issuer of the obligations. Because many municipal securities are issued to finance projects in sectors such as education, health care, transportation and utilities, conditions in those sectors can affect the overall municipal market. The amount of publicly available information for municipal issuers is generally less than for corporate issuers.

**Non-Diversified Fund Risk**

The Fund is non-diversified, which generally means that it may invest a greater percentage of its total assets in the securities of fewer issuers than a "diversified" fund. This increases the risk that a change in the value of any one investment held by the Fund could affect the overall value of the Fund more than it would affect that of a diversified fund holding a greater number of investments. Accordingly, the Fund's value will likely be more volatile than the value of a more diversified fund.

Issuers in a state, territory, commonwealth or possession in which the Fund invests may experience significant financial difficulties for various reasons, including as the result of events that cannot be reasonably anticipated or controlled such as economic downturns or similar periods of economic stress, social conflict or unrest, labor disruption and natural disasters. Such financial difficulties may lead to credit rating downgrades or defaults of such issuers which, in turn, could affect the market values and marketability of many or all municipal obligations of issuers in such state, territory, commonwealth or possession. The value of the Fund's shares will be negatively impacted to the extent it invests in such securities.

**Non-Investment Grade and Unrated Instruments.**

A portion of the Fund's assets may be invested in instruments that are unrated or have a credit quality rating below investment grade by internationally recognized credit rating organizations, such as Moody's Investors Service Inc. and S&P Global Ratings. The market prices of those securities may fluctuate more than higher-rated securities, and may decline significantly in periods of general economic difficulty. Those securities generally are considered to have extremely poor prospects of ever attaining any real investment grade standing and to have a current identifiable vulnerability to default. The issuers or guarantors of those securities are considered to be less likely to have the capacity to pay interest and repay principal when due in the event of adverse business, financial or economic conditions. Alternatively, such issuers may be in default or not current in the payment of interest or principal. Adverse changes in economic conditions or developments regarding the individual issuer are more likely to cause price volatility and weaken the capacity of the issuers of noninvestment grade debt securities to make principal and interest payments than issuers of higher grade debt securities. An economic downturn affecting an issuer of non-investment grade debt securities may result in an increased incidence of default. In addition, the market for lower grade debt securities may be less liquid and less active than for higher grade debt securities.

**Non-U.S. Government and Supranational Debt Securities Risk**

The Fund's investments in the debt securities of foreign governments can involve a high degree of risk. The governmental entity that controls the repayment of debt may not be able or willing to repay the principal and/or interest when due in accordance with the terms of such debt. Governmental entities may be dependent on expected disbursements from other foreign governments, multilateral agencies, and others abroad to reduce principal and interest arrearages on their debt. The commitment on the part of these governments, agencies, and others to make such disbursements may be conditioned on the implementation of economic reforms and/or economic performance and the timely service of such governmental entity's obligations. Failure to adhere to any such requirements may result in the cancellation of such other parties' commitments to lend funds to the governmental entity, which may further impair such debtor's ability or willingness to timely service its debts, and, consequently, governmental entities may default on their debt. In addition, a holder of foreign government obligations (including the Fund) may be requested to participate in the rescheduling of such debt and to extend further loans to governmental entities, and such holder's interests could be adversely affected in the course of those restructuring arrangements. Obligations arising from past restructuring agreements may affect the economic performance and political and social stability of certain issuers of sovereign debt. In the event of a default by a governmental entity, there may be few or no effective legal remedies for collecting on such debt. The sovereign debt of many non-U.S. governments, including their subdivisions and instrumentalities, is rated below investment grade. The risks associated with non-U.S. Government and supranational debt securities may be greater for debt securities issued or guaranteed by emerging and/or frontier countries.

Foreign investment in certain sovereign debt is restricted or controlled to varying degrees, which may at times limit or preclude foreign investment in such sovereign debt and increase the Fund's costs and expenses. Certain issuers may require governmental approval for the repatriation of investment income, capital, or the proceeds of sales of securities by foreign investors, and a government could impose temporary restrictions on foreign capital remittances. The Fund could be adversely affected by delays in, or a refusal to grant, any required governmental approval for repatriation of capital, as well as by the application to the Fund of any restrictions on investments. Investing in local markets may require the Fund to adopt special procedures, seek local government approvals, and/or take other actions, each of which may involve additional costs.

**Operational Risk**

The Fund is exposed to operational risks arising from a number of factors, including, but not limited to, human errors, processing and communication errors, errors of the Fund's service providers, counterparties or other third parties, failed or inadequate internal or external processes, and technology or systems failures. The use of certain investment strategies that involve manual or additional processing, such as over-the-counter derivatives, increases these risks. While service providers are required to have appropriate operational risk management policies and procedures, their methods of operational risk management may differ from those of the Fund in the setting of priorities, the personnel and resources available or the effectiveness of relevant controls. The Fund and the Adviser seek to reduce these operational risks through controls, procedures and oversight. However, it is not possible to identify all of the operational risks that may affect the Fund or to develop processes and controls that completely eliminate or mitigate the occurrence or effects of such failures. The Fund, including its performance and continued operation, and its shareholders could be negatively impacted as a result.

**Pledge of, Foreclosure on and Liquidation of Fund Assets**

Any assets of the Fund may be pledged to finance other investments of the Fund. Shareholders may be at risk of loss due to borrowings used to finance other investments.

**Portfolio Turnover Risk**

The Fund's annual portfolio turnover rate may vary greatly from year to year, as well as within a given year. Portfolio turnover rate is not considered a limiting factor in the execution of investment decisions for the Fund. A higher portfolio turnover rate results in correspondingly greater brokerage commissions and other transactional expenses that are borne by the Fund. High portfolio turnover may result in an increased realization of net short term capital gains by the Fund which, when distributed to common shareholders, will be taxable as ordinary income. Additionally, in a declining market, portfolio turnover may create realized capital losses.

**Potential Conflicts of Interest of the Adviser and Others**

The investment activities of the Adviser and its affiliates, and their respective directors, officers or employees, in managing their own accounts and other accounts, may present conflicts of interest that could disadvantage the Fund and its shareholders. The Adviser and its affiliates may engage in proprietary trading and advise accounts and other funds that have investment objectives similar to those of the Fund and/or that engage in and compete for transactions in the same or similar types of securities, currencies and other assets as are held by the Fund. Subject to the requirements of the Investment Company Act, the Adviser and its affiliates intend to engage in such activities and may receive compensation from third parties for their services. Neither the Adviser nor any affiliate is under any obligation to share any investment opportunity, idea or strategy with the Fund. As a result, an affiliate may compete with the Fund for appropriate investment opportunities. The results of the Fund's investment activities, therefore, may differ from those of an affiliate and of other accounts managed by an affiliate. It is possible that the Fund could sustain losses during periods in which one or more affiliates and other accounts achieve profits on their trading for proprietary or other accounts. The opposite result is also possible. The Adviser has adopted policies and procedures designed to address potential conflicts of interest.

**Preferred Security Risk.** Preferred security is a type of security that may pay dividends at a different rate than common stock of the same issuer, if at all, and that has preference over common stock in the payment of dividends and the liquidation of assets. Preferred security does not ordinarily carry voting rights. The price of a preferred security is generally determined by earnings, type of products or services, projected growth rates, experience of management, liquidity, and general market conditions of the markets on which the security trades. The most significant risks associated with investments in preferred security include issuer risk, market risk and interest rate risk (the risk of losses attributable to changes in interest rates).

**Private Credit Asset Risk**

The Fund intends to obtain exposure to select less liquid or illiquid private credit investments. Typically, private credit investments are not traded in public markets and are illiquid, such that the Fund may not be able to resell some of its holdings for extended periods, which may be several years, or at the price at which the Fund is valuing its investments. The Fund may, from time to time or over time, focus its private credit investments in a particular industry or sector or select industries or sectors. Investment performance of such industries or sectors may thus at times have an out-sized impact on the performance of the Fund. Additionally, private credit investments can range in credit quality depending on security-specific factors, including total leverage, amount of leverage senior to the security in question, variability in the issuer's cash flows, the size of the issuer, the quality of assets securing debt and the degree to which such assets cover the subject company's debt obligations. The issuers of private credit investment will often be leveraged, as a result of recapitalization transactions, and may not be rated by national credit rating agencies. The Fund may also obtain exposure to private credit assets indirectly by investing in underlying funds or other vehicles. Less information may be available with respect to private company investments and such investments offer limited liquidity. Private companies are generally not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles, and are not required to maintain effective internal controls over financial reporting. As a result, there is risk that the Fund may invest on the basis of incomplete or inaccurate information, which may adversely affect the Fund's investment performance.

**Private Companies Risk**

The Fund may make direct private equity, venture or other private investments in securities or other instruments issued by private companies or other private issuers. Operating results for private companies/issuers in a specified period will be difficult to predict. Such investments involve a high degree of business and financial risk that can result in substantial losses.

Private companies are generally not subject to SEC reporting requirements, are not required to maintain their accounting records in accordance with generally accepted accounting principles and are not required to maintain effective internal controls over financial reporting. As a result, the Adviser may not have timely or accurate information about the business, financial condition and results of operations of the private companies in which the Fund invests. There is risk that the Fund may invest on the basis of incomplete or inaccurate information, which may adversely affect the Fund's investment performance. Private companies in which the Fund may invest may have limited financial resources, shorter operating histories, more asset concentration risk, narrower product lines and smaller market shares than larger businesses, which tend to render such private companies more vulnerable to competitors' actions and market conditions, as well as general economic downturns. These companies generally have less predictable operating results, may from time to time be parties to litigation, may be engaged in rapidly changing businesses with products subject to a substantial risk of obsolescence, and may require substantial additional capital to support their operations, finance expansion or maintain their competitive position. These companies may have difficulty accessing the capital markets to meet future capital needs, which may limit their ability to grow or to repay their outstanding indebtedness upon maturity.

Typically, investments in private companies are in restricted securities that are not traded in public markets and subject to substantial holding periods, so that the Fund may not be able to resell some of its holdings for extended periods, which may be several years. There can be no assurance that the Fund will be able to realize the value of private company investments in a timely manner.

Private companies are more likely to depend on the management talents and efforts of a small group of persons; therefore, the death, disability, resignation or termination of one or more of these persons could have a material adverse impact on the company. The Fund may hold a substantial number of non-controlling positions in the private companies in which it invests. As a result, the Fund is subject to the risk that a company may make business decisions with which the Fund disagrees, and that the management and/or stockholders of a portfolio company may take risks or otherwise act in ways that are adverse to the Fund's interests. Due to the lack of liquidity of such private investments, the Fund may not be able to dispose of its investments in the event it disagrees with the actions of a private portfolio company and may therefore suffer a decrease in the value of the investment. In addition, these investments are subject to valuation risk as they will be fair valued which is subject to inherent uncertainty and thus, there is significant uncertainty that the Fund can realize such investments at value. At times the Fund may be the majority investor in a portfolio company. In that event, the Fund may take actions in a manner that could disadvantage the minority investors in such portfolio company. There is an increased risk that a minority investor could bring a claim in respect of such actions, which may adversely impact the Fund's investment, whether or not such claims are successfully defended.

Investments in late-stage private companies involve greater risks than investments in shares of companies that have traded publicly on an exchange for extended periods of time. These investments may present significant opportunities for capital appreciation but involve a high degree of risk that may result in significant decreases in the value of these investments. The Fund may not be able to sell such investments when the Adviser deems it appropriate to do so because they are not publicly traded. As such, these investments are generally considered to be illiquid until a company's public offering (which may never occur) and are often subject to additional contractual restrictions on resale following any public offering that may prevent the Fund from selling its shares of these companies for a period of time. Market conditions, developments within a company, investor perception or regulatory decisions may adversely affect a late-stage private company and delay or prevent such a company from ultimately offering its securities to the public. If a company does issue shares in an IPO, IPOs are risky and volatile and may cause the value of the Fund's investment to decrease significantly. Even after an IPO, shares may still be restricted, and may be sold only in a privately negotiated transaction or pursuant to an exemption from registration. For example, Rule 144A under the Securities Act provides an exemption from the registration requirements of the Securities Act for the resale of certain restricted securities to qualified institutional buyers, such as the Fund. However, an insufficient number of qualified institutional buyers interested in purchasing the Rule 144A-eligible securities that the Fund holds could affect adversely the marketability of certain Rule 144A securities, and the Fund might be unable to dispose of such securities promptly or at reasonable prices. If adverse market conditions develop during this period, the Fund might obtain a less favorable price than the price that prevailed when the Fund decided to sell. The Fund may be unable to sell restricted and other illiquid investments at opportune times or prices.

**Private Fund Risk**

Investments in private funds will subject the Fund indirectly to investment risks associated with the private funds' underlying investments, which are generally expected to be risks associated with the Fund's direct investment strategies and which are described throughout this section of the Prospectus. In addition, investments in private funds involve special risks including that they typically are not registered as investment companies under the Investment Company Act. Therefore, as an investor in private funds, the Fund will not have the benefit of the protections afforded by the Investment Company Act to investors in registered investment companies. These include, among others, limitations on the use of leverage, and requirements relating to custody of assets, board composition, and approval of advisory contracts. Private funds may, in some cases, concentrate their investments in a single industry or group of related industries. This increases the sensitivity of their investment returns to economic factors affecting that industry or group of industries. As a result, private funds' investments may, in some cases, be more speculative or volatile and thus subject the Fund to greater risk of loss.

The Adviser typically has limited ability to verify independently the information provided by a private fund or its manager, including valuations. Inaccurate or delayed valuations provided by private funds could adversely affect the value of the Fund's shares. The Fund relies primarily on information provided to it by the private funds in valuing its investments in such funds. The Adviser typically has limited ability to verify independent the information provided by a private fund or its manager, including valuations. Further, because the Fund relies on information provided by the private fund managers, delays in receiving audited financials or other required information may delay the Fund's own financial reporting or investor communications.

A private fund manager may use proprietary investment strategies that are not fully disclosed, which may involve risks under some market conditions that are not anticipated by the Adviser. There can be no assurance that a private fund manager will provide advance notice of any material change in a private fund's investment program or policies and thus, the Fund's investment portfolio may be subject to additional risks which may not be promptly identified by the Adviser.

Investments in private funds are typically illiquid. In some cases, the Fund may only be able to redeem its interests in the private fund at specific intervals and may be subject to lock-up periods, notice requirements, or redemption gates. In other cases, a private fund may not provide any liquidity whatsoever (as the fund may be "closed-ended"). In addition, a private fund may distribute illiquid or difficult-to-value securities in-kind in connection with a redemption. In such cases, the Fund may be required to hold or liquidate these securities or distribute them to shareholders, potentially at a loss or on unfavorable terms.

Private funds generally pay both asset-based and performance-based compensation to their investment managers. As a result, the private funds' gross returns are reduced by the asset-based and performance-based compensation paid by the private funds. Thus, as an investor in these funds, the Fund bears a proportionate share of the private fund fees and expenses, which are in addition to the management fee paid by the Fund to the Adviser. These layered fees have the effect of reducing the Fund's investment returns. In addition, the Fund's investment in a private fund will be subject to performance-based compensation, even if (i) other private fund investments of the Fund underperform and generate no performance based compensation and (ii) the Fund generates overall negative returns. Further, performance-based compensation may create an incentive for managers of private funds to make investments that are riskier or more speculative than those they might otherwise make.

Unlike in a traditional registered fund structure, the Fund may have no voting rights or may waive such rights in connection with investments in certain private funds. As a result, the Fund may be unable to vote on matters that could adversely affect its investments, including changes to the private fund's governing documents or investment policies.

There is also a risk that a private fund manager or its custodian could misappropriate assets or fail to comply with applicable laws and regulations, resulting in loss to the Fund.

**Private Investments in Public Equity ("PIPEs") Risk**

The Fund may invest in PIPEs. PIPEs are equity securities purchased in a private placement that are issued by issuers who have outstanding, publicly traded equity securities of the same class. Shares in PIPEs are not registered with the SEC and may not be sold unless registered with the SEC or pursuant to an exemption from registration. This restricted period can last many months. Until the public registration process is completed, the resale of the PIPE shares is restricted and the Fund may sell the shares after six months, with certain restrictions, if the Fund is not an affiliate of the issuer (under relevant securities law, a holder of restricted shares may sell the shares after 6 months if the holder is not affiliated to the issuer).

Generally, such restrictions cause the PIPEs to be illiquid during this time. If the issuer does not agree to register the PIPE shares, the shares will remain restricted, not be freely tradable and may only be sold pursuant to an exemption from registration. Even if the PIPE shares are registered for resale, there is no assurance that the registration will be in effect at the time the Fund elects to sell the shares.

**Quota Share Notes, Excess of Loss Notes and ILW Notes Risk**

As Reinsurance Notes represent an interest, either proportional or non-proportional, in one or more underlying reinsurance contracts, the Fund has limited transparency into the individual underlying contract(s) and, therefore, must rely upon the risk assessment and sound underwriting practices of the sponsor. Accordingly, it may be more difficult to fully evaluate the underlying risk profile of Reinsurance Notes, which may place the Fund's assets at greater risk of loss than if the Adviser had more complete information. The lack of transparency may also make the valuation of such investments more difficult and potentially result in mispricing that could result in losses to the Fund.

**Reference Rate Replacement Risk**

The Fund may be exposed to financial instruments that recently transitioned from, or continue to be tied to, the London Interbank Offered Rate ("LIBOR") to determine payment obligations, financing terms, hedging strategies or investment value.

The United Kingdom's Financial Conduct Authority ("FCA"), which regulates LIBOR, has ceased publishing all LIBOR settings. In April 2023, however, the FCA announced that some USD LIBOR settings would continue to be published under a synthetic methodology until September 30, 2024 for certain legacy contracts. After September 30, 2024, the remaining synthetic LIBOR settings ceased to be published, and all LIBOR settings have permanently ceased. The Secured Overnight Financing Rate ("SOFR") is a broad measure of the cost of borrowing cash overnight collateralized by U.S. Treasury securities in the repurchase agreement ("repo") market and has been used increasingly on a voluntary basis in new instruments and transactions. Under U.S. regulations that implement a statutory fallback mechanism to replace LIBOR, benchmark rates based on SOFR have replaced LIBOR in certain financial contracts.

Neither the effect of the LIBOR transition process nor its ultimate success can yet be known. While some existing LIBOR-based instruments may contemplate a scenario where LIBOR is no longer available by providing for an alternative rate-setting methodology, there may be significant uncertainty regarding the effectiveness of any such alternative methodologies to replicate LIBOR. Not all existing LIBOR-based instruments may have alternative rate-setting provisions and there remains uncertainty regarding the willingness and ability of issuers to add alternative rate-setting provisions in certain existing instruments. Parties to contracts, securities or other instruments using LIBOR may disagree on transition rates or the application of transition regulation, potentially resulting in uncertainty of performance and the possibility of litigation. The Fund may have instruments linked to other interbank offered rates that may also cease to be published in the future.

**Regulation and Government Intervention Risk**

Federal, state, and other governments, their regulatory agencies or self-regulatory organizations may take actions that affect the regulation of the issuers in which the Fund invests in ways that are unforeseeable. Legislation or regulation may also change the way in which the Fund is regulated. Such legislation or regulation could limit or preclude the Fund's ability to achieve its investment objectives.

In light of popular, political and judicial focus on finance related consumer protection, financial institution practices are also subject to greater scrutiny and criticism generally. In the case of transactions between financial institutions and the general public, there may be a greater tendency toward strict interpretation of terms and legal rights in favor of the consuming public, particularly where there is a real or perceived disparity in risk allocation and/or where consumers are perceived as not having had an opportunity to exercise informed consent to the transaction. In the event of conflicting interests between retail investors holding common shares of a closed-end investment company such as the Fund and a large financial institution, a court may similarly seek to strictly interpret terms and legal rights in favor of retail investors.

The Fund may be affected by governmental action in ways that are not foreseeable, and there is a possibility that such actions could have a significant adverse effect on the Fund and its ability to achieve its investment objectives.

**Reinsurance Risk** 

The performance of reinsurance-related securities and the reinsurance industry itself are tied to the occurrence of various triggering events, including weather, natural disasters (hurricanes, earthquakes, etc.), non-natural large catastrophes and other specified events causing physical and/or economic loss. If the likelihood and severity of natural and other large disasters increase, the risk of significant losses to reinsurers may also increase. Typically, one significant triggering event (even in a major metropolitan area) will not result in financial failure to a reinsurer. However, a series of major triggering events could cause the failure of a reinsurer. Similarly, to the extent the Fund invests in reinsurance-related securities for which a triggering event occurs, losses associated with such event could result in losses to the Fund's investment, and a series of major triggering events affecting a large portion of the reinsurance- related securities held by the Fund could result in substantial losses to the Fund's investment. In addition, unexpected events such as natural disasters or terrorist attacks could lead to government intervention. Political, judicial and legal developments affecting the reinsurance industry could also create new and expanded theories of liability or regulatory or other requirements; such changes could have a material adverse effect on the Fund's investment.

The determination of the level of losses under a reinsurance-related security may be a protracted process and the realizable value of these reinsurance-related securities, particularly those with respect to which a loss event has occurred, will be delayed until the related collateral, if any, is released to the Fund and any remaining associated liabilities are finally determined.

**Reliance on the Adviser Risk**

The Fund is dependent upon services and resources provided by the Adviser. The Adviser is not required to devote their full time to the business of the Fund and there is no guarantee or requirement that any investment professional or other employee of the Adviser will allocate a substantial portion of his or her time to the Fund. The loss of one or more individuals involved with the Adviser could have a material adverse effect on the performance or the continued operation of the Fund. For additional information on the Adviser, see "Management of the Fund-Investment Adviser."

**Reliance on Service Providers Risk**

The Fund must rely upon the performance of service providers to perform certain functions, which may include functions that are integral to the Fund's operations and financial performance. Failure by any service provider to carry out its obligations to the Fund in accordance with the terms of its appointment, to exercise due care and skill or to perform its obligations to the Fund at all as a result of insolvency, bankruptcy or other causes could have a material adverse effect on the Fund's performance and returns to shareholders. The termination of the Fund's relationship with any service provider, or any delay in appointing a replacement for such service provider, could materially disrupt the business of the Fund and could have a material adverse effect on the Fund's performance and returns to shareholders.

**Risk Associated with Recent Market Events**

A significant increase in interest rates may cause a further decline in the market for equity securities and could lead to a recession. Further, regulators have expressed concern that rate increases may contribute to price volatility. The impact of inflation and the recent actions of the Federal Reserve have led to market volatility and may negatively affect the value of debt instruments held by the Fund and result in a negative impact on the Fund's performance. See "-Inflation Risk."

Governments and regulators may take actions that affect the regulation of the Fund or the instruments in which the Fund invests, or the issuers of such instruments, in ways that are unforeseeable. Future legislation or regulation or other governmental actions could limit or preclude the Fund's abilities to achieve its investment objectives or otherwise adversely impact an investment in the Fund. Political and diplomatic events within the United States, including a contentious domestic political environment, changes in political party control of one or more branches of the U.S. Government, the U.S. Government's inability at times to agree on a long-term budget and deficit reduction plan, the threat of a U.S. Government shutdown, and disagreements over, or threats not to increase, the U.S. Government's borrowing limit (or "debt ceiling"), as well as political and diplomatic events abroad, may affect investor and consumer confidence and may adversely impact financial markets and the broader economy, perhaps suddenly and to a significant degree. A downgrade of the ratings of U.S. Government debt obligations, or concerns about the U.S. Government's credit quality in general, could have a substantial negative effect on the U.S. and global economies. For example, concerns about the U.S. Government's credit quality may cause increased volatility in the stock and bond markets, higher interest rates, reduced prices and liquidity of U.S. Treasury securities, and/or increased costs of various kinds of debt. Moreover, although the U.S. Government has honored its credit obligations, there remains a possibility that the United States could default on its obligations. The consequences of such an unprecedented event are impossible to predict, but it is likely that a default by the United States would be highly disruptive to the U.S. and global securities markets and could significantly impair the value of the Fund's investments.

Some countries, including the United States, have adopted and/or are considering the adoption of more protectionist trade policies and/or a move away from tight financial industry regulations, including but not limited to, direct capital infusions into companies, new monetary programs and dramatically lower interest rates, that were previously adopted in response to serious economic disruptions. The exact shape of these policies is still being considered, but the equity and debt markets may react strongly to expectations of change, which could increase volatility, especially if the market's expectations are not borne out and an unexpected or sudden reversal of these policies, could increase volatility in securities markets, which could adversely affect the Fund's investments or prevent the Fund from executing on advantageous investment opportunities in a timely manner. A rise in protectionist trade policies, and the possibility of changes to some international trade agreements, could affect the economies of many nations in ways that cannot necessarily be foreseen at the present time. In addition, geopolitical and other risks, including environmental and public health, may add to instability in world economies and markets generally. Economies and financial markets throughout the world are becoming increasingly interconnected. As a result, whether or not the Fund invests in securities of issuers located in or with significant exposure to countries experiencing economic, political and/or financial difficulties, the value and liquidity of the Fund's investments may be negatively affected by such events.

**Rule 144A and Other Exempted Securities Risk**

The Fund may invest in privately placed and other securities or instruments exempt from SEC registration (collectively "private placements"), subject to certain regulatory restrictions. In the U.S. market, private placements are typically sold only to qualified institutional buyers, or qualified purchasers, as applicable. An insufficient number of buyers interested in purchasing private placements at a particular time could adversely affect the marketability of such investments and the Fund might be unable to dispose of them promptly or at reasonable prices, subjecting the Fund to liquidity risk (the risk that it may not be possible for the Fund to liquidate the instrument at an advantageous time or price). The Fund's holdings of private placements may increase the level of Fund illiquidity if eligible buyers are unable or unwilling to purchase them at a particular time. The Fund may also have to bear the expense of registering the securities for resale and the risk of substantial delays in effecting the registration. Additionally, the purchase price and subsequent valuation of private placements typically reflect a discount, which may be significant, from the market price of comparable securities for which a more liquid market exists. Issuers of Rule 144A eligible securities are required to furnish information to potential investors upon request. However, the required disclosure is much less extensive than that required of public companies and is not publicly available since the offering information is not filed with the SEC. Further, issuers of Rule 144A eligible securities can require recipients of the offering information (such as the Fund) to agree contractually to keep the information confidential, which could also adversely affect the Fund's ability to dispose of the security.

**Secondary Investments**

The Fund may acquire shares or interests in private companies from other shareholders ("Secondary Shares"). When the Fund purchases Secondary Shares, it may have little or no direct access to financial or other information from the issuers of those securities. As a result, the Fund is dependent upon the relationships and contacts of the Adviser and its investment professionals to obtain the information to perform research and due diligence and to monitor the investments in Secondary Shares after they are made. There can be no assurance that the Adviser will be able to acquire adequate information on which to make its investment decision with respect to any Secondary Share purchases, or that the information it is able to obtain is accurate or complete. Any failure to obtain full and complete information regarding the issuers of such shares could cause the Fund to lose part or all of its investment in Secondary Shares.

In addition, while the Adviser may believe the ability to acquire Secondary Shares or sell the Fund's own private securities as Secondary Shares may provide valuable opportunities for liquidity, there can be no assurance that there will be a market or liquidity for buying or selling Secondary Shares. The prices of Secondary Shares may be subject to irregular trading activity, wide bid/ask spreads and extended trade settlement periods, which may result in an inability for the Fund to acquire Secondary Shares at an attractive price or realize the full value on the sale of private securities held by the Fund as Secondary Shares. In addition, wide swings in market prices, which are typical of irregularly traded securities, could cause significant and unexpected declines in the value of the Fund. Further, prices in private secondary marketplaces, where limited information is available, may not accurately reflect the true value of the securities sold in that market, and may overstate an issuer's actual value, which may cause the Fund to realize future losses on its investment in a private issuer.

Investments in private companies, including through private secondary marketplaces, also entail additional legal and regulatory risks that expose participants to the risk of liability due to the imbalance of information among participants and participant qualification and other transactional requirements applicable to private securities transactions, the non-compliance with which could result in rescission rights and monetary and other sanctions. The application of these laws within the context of private secondary marketplaces and related market practices are still evolving, and, despite efforts to comply with applicable laws, the Fund could be exposed to liability. The regulation of private secondary marketplaces is also evolving. Additional state or federal regulation of these markets could result in limits on the operation of or activity on those markets. Conversely, deregulation of these markets could make it easier for investors to invest directly in private companies and affect the competitiveness for such investments. Private companies may also increasingly seek to limit secondary trading in their stock, such as through contractual transfer restrictions, and provisions in company charter documents, investor rights of first refusal and co-sale and/or employment and trading policies further restricting trading. To the extent that these or other developments result in reduced trading activity and/or availability of private company shares, the Fund's ability to find investment opportunities and to liquidate investments could be adversely affected. Investments acquired at a discount may result in unrealized gains at the time the Fund next calculates its NAV.

Because the Fund's NAV is generally based on the fair market value, for secondary investments that are acquired at a discount, those investments would be marked up to their fair value at the next NAV calculation, which would result in unrealized gains at the Fund level. The unrealized gains would increase the value of the Fund's NAV and investment performance, and when sold, would result in taxable gain if the sold value of the investments were greater than the Fund's tax basis in such investments. If sold, the investments would result in taxable gain to the extent the sell price of the investments exceeded the Fund's tax basis in such investments and would likely be treated as capital gains.

**Sector Risk** 

At times, the Fund may have a significant portion of its assets invested in securities of companies conducting business within one or more economic sectors. Companies in the same sector may be similarly affected by economic, regulatory, political or market events or conditions, which may make the Fund more vulnerable to unfavorable developments in that sector than funds that invest more broadly. Generally, the more broadly the Fund invests, the more it spreads risk and potentially reduces the risks of loss and volatility. The Fund does not focus on any particular sector or industry.

**Senior Loan Risk**

Senior loans and interests in other bank loans may not be readily marketable and may be subject to restrictions on resale. Senior loans and other bank loans may not be considered "securities," and investors in these loans may not be entitled to rely on anti-fraud and other protections under the federal securities laws. In some cases, negotiations involved in disposing of indebtedness may require weeks to complete. Consequently, some indebtedness may be difficult or impossible to dispose of readily at what the Adviser believes to be a fair price. In addition, valuation of illiquid indebtedness involves a greater degree of judgment in determining the Fund's NAV than if that value were based on available market quotations, and could result insignificant variations in the Fund's daily NAV. At the same time, some loan interests are traded among certain financial institutions and accordingly may be deemed liquid. Further, the settlement period (the period between the execution of the trade and the delivery of cash to the purchaser) for some senior loans and other bank loans transactions may be significantly longer than the settlement period for other investments, and in some case may take longer than seven days. As a result, the Fund may be forced to sell investments at unfavorable prices or borrow money or effect short settlements where possible (at a cost to the Fund), in an effort to generate sufficient cash to meet liquidity needs (to the extent they arise). The Fund's actions in this regard may not be successful.

**Short Selling Risk**

The extent to which the Fund engages in short sales will depend upon the Adviser's investment strategy and opportunities. A short sale creates the risk of a theoretically unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost to the Fund of buying those securities to cover the short position. There can be no assurance that the Fund will be able to maintain the ability to borrow securities sold short. In such cases, the Fund can be "bought in" (i.e., forced to repurchase securities in the open market to return to the lender). There also can be no assurance that the securities necessary to cover a short position will be available for purchase at or near prices quoted in the market, and such risk may be exacerbated to the extent that such securities are thinly traded or illiquid. Purchasing securities to close out a short position can itself cause the price of the securities to rise further, thereby exacerbating the loss. It may also be impossible for the Fund to borrow securities at the most desirable time to make a short sale, particularly in illiquid securities markets.

If the prices of securities sold short increase, the Fund will likely be required to provide additional funds or collateral to maintain the short positions. This could require the Fund to liquidate other investments to provide additional margin, and those liquidations might not be at favorable prices. A short sale involves the risk of a theoretically unlimited loss, in that the price of the underlying security could theoretically increase without limit, thus increasing the cost to the Fund of buying those securities to cover the short position or resulting in the inability of the Fund to cover the short position.

**Special Purpose Acquisition Companies Risk**

Capital raised through the IPO of securities of a SPAC is typically placed into a trust account until acquired business combination is completed or a predetermined period of time (typically 24 months) elapses. Investors in a SPAC would receive a return on their investment in the event that a target company is acquired and the combined publicly-traded company's shares trade above the SPAC's IPO price, or alternatively, the market price at which an investor acquired a SPAC's shares subsequent to its IPO. In the event that a SPAC is unable to locate and acquire a target business by the timeframe established at the time of its IPO, the SPAC would be forced to liquidate its assets, which may result in losses due to the expenses and liabilities of the SPAC, to the extent third-parties are permitted to bring claims against IPO proceeds held in the SPAC's trust account. Investors in a SPAC are subject to the risk that, among other things, (i) such SPAC may not be able to complete a qualifying business combination by the deadline established at the time of its IPO, (ii) assets in the trust account may become subject to third-party claims against such SPAC, which may reduce the per share liquidation value received by the investors in the SPAC in the event it fails to complete a business combination within the required time period, (iii) such SPAC may be exempt from the rules promulgated by the SEC to protect investors in "blank check" companies, such as Rule 419 promulgated under the Securities Act, so that investors in such SPAC may not be afforded the benefits or protections of those rules, (iv) such SPAC will likely only complete one business combination, which will cause its returns and future prospects to be solely dependent on the performance of a single acquired business, (v) the value of any target business, including its stock price as a public company, may decrease following its acquisition by such SPAC, (vi) the value of the funds invested and held in the trust account may decline, (vii) the inability to redeem due to the failure to hold the securities in the SPAC on the applicable record date to do so, and (viii) if the SPAC is unable to consummate a business combination, public stockholders will be forced to wait until the deadline before liquidating distributions are made. The Fund may invest in a SPAC that, at the time of investment, has not selected or approached any prospective target businesses with respect to a business combination. In such circumstances, there may be limited basis for the Fund to evaluate the possible merits or risks of such SPAC's investment in any particular target business. In addition, to the extent that a SPAC completes a business combination, it may be affected by numerous risks inherent in the business operations of the acquired company or companies. For these and additional reasons, investments in SPACs are speculative and involve a high degree of risk.

From time to time, the Adviser may receive material non-public information with respect to a particular SPAC or other issuer of publicly traded securities. In particular, to the extent the Fund is party to a forward purchase agreement, a SPAC will typically be required to advise the Fund with respect to developments in its search for possible target businesses. In such circumstances, the Fund may be prohibited, by law, policy or contract, for a period of time from (i) unwinding a position in such issuer, (ii) establishing an initial position or taking any greater position in such issuer, and (iii) pursuing other investment opportunities related to such issuer.

**Sovereign Debt Risk**

The Fund expects to buy and sell sovereign debt. Several factors may affect (i) the ability of a government, its agencies, instrumentalities or its central bank to make payments on the debt it has issued ("Sovereign Debt"), including securities that the Adviser believes are likely to be included in restructurings of the external debt obligations of the issuer in question, (ii) the market value of such debt and (iii) the inclusion of Sovereign Debt in future restructurings, including such issuer's (x) balance of trade and access to international financing, (y) cost of servicing such obligations, which may be affected by changes in international interest rates, and (z) level of international currency reserves, which may affect the amount of non U.S. exchange available for external debt payments. Significant ongoing uncertainties and exposure to adverse conditions may undermine the issuer's ability to make timely payment of interest and principal, and issuers may default on their Sovereign Debt.

**Structured Instruments Risk**

The Fund may invest in structured instruments, including, structured notes, credit-linked notes and other types of structured instruments. Holders of structured instruments bear risks of the underlying investments, index or reference obligation and are subject to counterparty risk. The Fund may have the right to receive payments only from the structured instrument, and generally does not have direct rights against the issuer or the entity that sold the assets to be securitized. While certain structured instruments enable the investor to acquire interests in a pool of securities without the brokerage and other expenses associated with directly holding the same securities, investors in structured instruments generally pay their share of the structured instrument's administrative and other expenses. Although it is difficult to predict whether the prices of indices and securities underlying structured instruments will rise or fall, these prices (and, therefore, the prices of structured instruments) are generally influenced by the same types of political and economic events that affect issuers of securities and capital markets generally. If the issuer of a structured instrument uses shorter term financing to purchase longer term securities, the issuer may be forced to sell its securities at below market prices if it experiences difficulty in obtaining such financing, which may adversely affect the value of the structured instruments owned by the Fund. Structured instruments generally entail risks associated with derivative instruments.

**Systemic Risk**

Systemic risk is the risk of broad financial system stress or collapse triggered by the default of one or more financial institutions, which results in a series of defaults by other interdependent financial institutions. Financial intermediaries, such as clearinghouses, banks, securities firms and exchanges with which the Fund interacts, as well as the Fund, are all subject to systemic risk. A systemic failure could have material adverse consequences on the Fund and on the markets for the securities in which the Fund seeks to invest.

**Valuation Risk**

The Fund is subject to valuation risk, which is the risk that one or more of the securities in which the Fund invests are valued at prices that the Fund is unable to obtain upon sale due to factors such as incomplete data, market instability or human error. The Adviser may use an independent pricing service or prices provided by dealers to value securities at their market value. Because the secondary markets for certain investments may be limited, such instruments may be difficult to value. See "Net Asset Value." When market quotations are not available, the Adviser may price such investments pursuant to a number of methodologies, such as computer-based analytical modeling or individual security evaluations. These methodologies generate approximations of market values, and there may be significant professional disagreement about the best methodology for a particular type of financial instrument or different methodologies that might be used under different circumstances. In the absence of an actual market transaction, reliance on such methodologies is essential, but may introduce significant variances in the ultimate valuation of the Fund's investments. Technological issues and/or errors by pricing services or other third-party service providers may also impact the Fund's ability to value its investments and the calculation of the Fund's NAV.

When market quotations are not readily available or are believed by the Adviser to be unreliable, the Adviser will fair value the Fund's investments in accordance with its policies and procedures. Fair value represents a good faith approximation of the value of an asset or liability. The fair value of an asset or liability held by the Fund is the amount the Fund might reasonably expect to receive from the current sale of that asset or the cost to extinguish that liability in an arm's length transaction. Fair value pricing may require determinations that are inherently subjective and inexact about the value of a security or other asset. As a result, there can be no assurance that fair value priced assets will not result in future adjustments to the prices of securities or other assets, or that fair value pricing will reflect a price that the Fund is able to obtain upon sale, and it is possible that the fair value determined for a security or other asset will be materially different from quoted or published prices, from the prices used by others for the same security or other asset and/or from the value that actually could be or is realized upon the sale of that security or other asset. For example, the Fund's NAV could be adversely affected if the Fund's determinations regarding the fair value of the Fund's investments were materially higher than the values that the Fund ultimately realizes upon the disposal of such investments. Where market quotations are not readily available, valuation may require more research than for more liquid investments. In addition, elements of judgment may play a greater role in valuation in such cases than for investments with a more active secondary market because there is less reliable objective data available.

Because of overall size, duration and maturities of positions held by the Fund, the value at which its investments can be liquidated may differ, sometimes significantly, from the interim valuations obtained by the Fund. In addition, the timing of liquidations may also affect the values obtained on liquidation. Securities held by the Fund may routinely trade with bid-offer spreads that may be significant. There can be no guarantee that the Fund's investments could ultimately be realized at the Fund's valuation of such investments. In addition, the Fund's compliance with the asset diversification tests applicable to regulated investment companies depends on the fair market values of the Fund's assets, and, accordingly, a challenge to the valuations ascribed by the Fund could affect its ability to comply with those tests or require it to pay penalty taxes in order to cure a violation thereof.

The Fund's NAV per common share is a critical component in several operational matters including computation of advisory and services fees.

Consequently, variance in the valuation of the Fund's investments will impact, positively or negatively, the fees and expenses shareholders will pay.

**Venture Capital Investments**

The Fund may make "venture capital" investments in private companies which are subject to significant additional risks, including that the venture capital investments typically have limited operating history, are attempting to develop or commercialize unproven technologies or to implement novel business plans or are not otherwise developed sufficiently to be self-sustaining financially or to become public. The public market for startup and emerging growth companies is volatile. Such volatility may adversely affect the development of portfolio companies, the ability of the Fund to dispose of investments, and the value of investment securities on the date of sale or distribution by the Fund. In particular, the receptiveness of the public market to initial public offerings by the Fund's portfolio companies may vary dramatically from period to period. An otherwise successful portfolio company may yield poor investment returns if it is unable to consummate an initial public offering at the proper time. Even if a portfolio company effects a successful public offering, the portfolio company's securities may be subject to contractual "lock-up," securities law or other restrictions, which may, for a material period of time, prevent the Fund from disposing of such securities. Although these investments may offer the opportunity for significant gains, such investments involve a high degree of business and financial risk that can result in substantial losses, which risks generally are greater than the risks of investing in public or private companies that may be at a later stage of development. There can be no guarantee that any portfolio company investment will result in a liquidity event via public offering, merger, acquisition or otherwise. Generally, the investments made by the Fund will be illiquid and difficult to value, and there will be little or no collateral to protect an investment once made.

**Volatile Markets Risk**

The prices of financial instruments in which the Fund may invest can be volatile. Price movements of forward and other derivative contracts in which the Fund's assets may be invested are influenced by, among other things, interest rates, changing supply and demand relationships, trade, fiscal, monetary and exchange control programs and policies of governments, and national and international political and economic events and policies. The Fund is subject to the risk of failure of any of the exchanges on which its positions trade or of their clearinghouses. There can be no assurance that the Fund will not suffer material adverse effects from broad and rapid changes in market conditions. Recent market conditions have shown that markets can quickly change at times or in ways that are difficult for the Adviser to predict, so even a well analyzed investment approach may not protect the Fund from significant losses under certain market conditions.

**Warrants and Rights Risk**

Warrants are securities giving the holder the right, but not the obligation, to buy the stock of an issuer at a given price (generally higher than the value of the stock at the time of issuance) during a specified period or perpetually. Warrants may be acquired separately or in connection with the acquisition of securities. Warrants do not carry with them the right to dividends or voting rights and they do not represent any rights in the assets of the issuer. Warrants are subject to the risks associated with the security underlying the warrant, including market risk. Warrants may expire unexercised and subject the Fund to liquidity risk (the risk that it may not be possible for the Fund to liquidate the instrument at an advantageous time or price), which may result in Fund losses. Rights are available to existing shareholders of an issuer to enable them to maintain proportionate ownership in the issuer by being able to buy newly issued shares. Rights allow shareholders to buy the shares below the current market price. Rights are typically short-term instruments that are valued separately and trade in the secondary market during a subscription (or offering) period. Holders can exercise the rights and purchase the stock, sell the rights or let them expire. Their value, and their risk of investment loss, is a function of that of the underlying security.

**When-Issued, Forward Commitment and Delayed Delivery Transactions Risk**

The Fund may purchase securities on a when-issued basis (including on a forward commitment or "TBA" (to be announced) basis) and may purchase or sell securities for delayed delivery. When-issued and delayed delivery transactions occur when securities are purchased or sold by the Fund with payment and delivery taking place in the future to secure an advantageous yield or price. Securities purchased on a when-issued or delayed delivery basis may expose the Fund to counterparty risk of default as well as the risk that securities may experience fluctuations in value prior to their actual delivery. The Fund will not accrue income with respect to a when-issued or delayed delivery security prior to its stated delivery date. Purchasing securities on a when-issued or delayed delivery basis can involve the additional risk that the price or yield available in the market when the delivery takes place may not be as favorable as that obtained in the transaction itself.

**MANAGEMENT OF THE FUND**

**Trustees and Officers**

The Board is responsible for the overall management of the Fund, including supervision of the duties performed by the Adviser. There are five Trustees. A majority of the Trustees are Independent Trustees of the Fund. The name and business address of the Trustees and officers of the Fund and their principal occupations and other affiliations during the past five years are set forth under "Management of the Fund" in the SAI.

**Investment Adviser**

The Adviser is a registered investment adviser and is responsible for the management of the Fund's portfolio and provides the necessary personnel, facilities, equipment and certain other services necessary to the operation of the Fund. Subject to the oversight of the Board, the Adviser manages the day-to-day operations of the Fund, determining what securities and other investments the Fund should buy or sell and executing portfolio transactions. The Adviser may use the research and other capabilities of affiliates and third parties in managing the Fund's investments. At present, the Adviser has not engaged any investment sub-adviser for the Fund. The Adviser is located at 405 Lexington Avenue, 58<sup>th</sup> Floor, New York, New York 10174.

As of April 1, 2025, the Adviser's assets under management were approximately $5.88 billion. The Adviser focuses on credit relative value, tail hedge, and closed-end funds. The Adviser's investors are predominantly institutions and include corporate pensions, public pensions, foundations, fund of funds, endowments, and family offices.

**Portfolio Managers**

The members of the portfolio management team who are primarily responsible for the day-to-day management of the Fund's portfolio are as follows:

Boaz Weinstein is the Founder and Chief Investment Officer of the Adviser. Previously, Mr. Weinstein worked at Deutsche Bank for 11 years, the last eight as Managing Director. In 2008, Mr. Weinstein became the Co-Head of Global Credit Trading of Deutsche Bank. Mr. Weinstein was also a member of the Global Markets Executive Committee. Mr. Weinstein began his investment career in 1995 at Merrill Lynch and worked at Donaldson Lufkin & Jenrette prior to joining Deutsche Bank.

Paul Kazarian joined the Adviser in March 2013 and is responsible for exchange traded products, including ETF arbitrage and closed-end funds. Prior to March 2013, Mr. Kazarian was a Director at RBC Capital Markets in the Global Arbitrage and Trading Group from 2007-2013. While there, Mr. Kazarian was responsible for the development and management of the Fixed Income ETF Group and also responsible for overseeing other ETF and index strategies. Prior to RBC, Mr. Kazarian worked as a technology analyst at Merrill Lynch from 2006-2007. Mr. Kazarian holds a BA in Political Science from Bates College.

Mr. Weinstein and Mr. Kazarian are supported by a team of other investment professionals that focus on various parts of the Fund's broad investment strategy.

The SAI provides additional information about each portfolio manager's compensation, other accounts managed by the portfolio management team and the ownership of the Fund's securities by each portfolio manager.

**Investment Management Agreement**

Pursuant to an investment management agreement between the Adviser and the Fund (the "Investment Management Agreement"), the Fund has agreed to pay the Adviser a monthly management fee at an annual rate equal to 1.05% of the average daily value of the Fund's Managed Assets. "Managed Assets" means the Fund's average daily gross asset value, minus the sum of the Fund's accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper and notes issued by the Fund) and the liquidation preference of any outstanding preferred shares.

A discussion regarding the basis for the approval of the Investment Management Agreement by the Board is available in the Fund's semi-annual report to shareholders for the period ended April 30, 2024.

Except as otherwise described in this Prospectus, the Fund pays, in addition to the fees paid to the Adviser, all other costs and expenses of its operations, including compensation of its Trustees (other than those affiliated with the Adviser), custodian, leveraging expenses, transfer and dividend disbursing agent expenses, legal fees, rating agency fees, listing fees and expenses, expenses of independent auditors, expenses of repurchasing shares, expenses of preparing, printing and distributing shareholder reports, notices, proxy statements and reports to governmental agencies and taxes, if any.

The Fund and the Adviser have entered into the Expense Limitation Agreement, pursuant to which the Adviser has agreed to limit expenses, excluding interest, taxes, investor relations services, other investment-related costs, leverage expenses, extraordinary expenses, other expenses not incurred in the ordinary course of the Fund's business, and expenses of any counsel or other persons or services retained by the Fund's Independent Trustees, to 1.05% of Managed Assets plus 0.30% of average daily net assets. For the year ended October 31, 2024, $987,184 fees were waived and reimbursed. The Adviser may, at a later date, recoup from the Fund fees waived and/or other expenses reimbursed by the Adviser during the previous 36 months, but only if, after such recoupment, the Fund's expense ratio does not exceed the percentage described above. For the year ended October 31, 2024, none of the fees waived were recouped. The current Expense Limitation Agreement expires on July 1, 2026 and automatically renews for one-year terms. The Expense Limitation Agreement may be terminated or modified at any time, upon approval of the Board.

**Administration, Accounting, and Transfer Agent Services**

ALPS Fund Services, Inc. ("SS&C ALPS") provides certain administration, accounting, and transfer agent services to the Fund pursuant to an Administration and Fund Accounting Services Agreement (the "Administration Agreement"). Pursuant to the Administration Agreement, SS&C ALPS provides the Fund with, among other things, customary fund accounting services, including computing the Fund's NAV and maintaining books, records and other documents relating to the Fund's financial and portfolio transactions, customary fund administration services, including assisting the Fund with regulatory filings, tax compliance and other oversight activities, and customary transfer agent services. For these and other services it provides to the Fund, SS&C ALPS is paid a fee equal to the higher of: a minimum fee of $160,000, or a 0.05% annual fee rate for the first $250 million of the Fund's net assets, a 0.04% fee rate for the next $250 million of the Fund's net assets and a 0.03% rate fee for all additional net assets of the Fund above $500 million. The principal business address of SS&C ALPS is 1290 Broadway Suite 1000 Denver, CO 80203.

The custodian of the assets of the Fund is the Bank of New York Mellon, whose principal business address is 240 Greenwich Street, New York, NY 10286. The custodian is responsible for, among other things, receipt of and disbursement of funds from the Fund's accounts, establishment of segregated accounts as necessary, and transfer, exchange and delivery of Fund portfolio securities.

**Independent Registered Public Accounting Firm**

Ernst & Young LLP, whose principal business address is One Manhattan West, 395 9<sup>th</sup> Ave, New York, NY 10001, is the independent registered public accounting firm of the Fund and is expected to render an opinion annually on the financial statements of the Fund.

**NET ASSET VALUE**

The NAV of the Fund's common shares will be computed based upon the value of the Fund's portfolio securities and other assets. NAV per common share will be determined as of the close of the regular trading session on the NYSE on each business day on which the NYSE is open for trading. The Fund calculates NAV per common share by dividing the value of the Fund's assets plus all cash and other assets (including accrued expenses but excluding capital and surplus) attributable to the common shares by the number of common shares outstanding.

Valuation of securities held by the Fund is as follows:

*Equity Investments*. Equity securities traded on a recognized securities exchange (e.g., NYSE), on separate trading boards of a securities exchange or through a market system that provides contemporaneous transaction pricing information (each, an "Exchange") are valued using information obtained via independent pricing services generally at the Exchange closing price or if an Exchange closing price is not available, the last traded price on that Exchange prior to the time as of which the assets or liabilities are valued. However, under certain circumstances, other means of determining current market value may be used. If an equity security is traded on more than one Exchange, the current market value of the security where it is primarily traded generally will be used. In the event that there are no sales involving an equity security held by the Fund on a day on which the Fund values such security, the last bid (long positions) or ask (short positions) price, if available, will be used as the value of such security. If the Fund holds both long and short positions in the same security, the last bid price will be applied to securities held long and the last ask price will be applied to securities sold short. If no bid or ask price is available on a day on which the Fund values such security, the prior day's price will be used, unless the Adviser determines that such prior day's price no longer reflects the fair value of the security, in which case such asset would be treated as a Fair Value Asset (as defined below).

*Fixed-Income Investments*. Investments for which market quotations are readily available are valued at fair market value. Securities (including common stock, closed end funds, investment trusts, preferred stock, unit trusts and SPACs) listed or traded on an exchange are valued at their last sales price or official closing price as of the close of the regular trading session on the exchange where the particular security at the last sale price as of the market close for such security provided by the Consolidated Tape Association ("CTA"). Investments in money market funds are valued at NAV, which approximates fair market value. The private fund investments are valued at the NAV reported by the private funds' general partner or investment adviser. This is commonly referred to as using NAV as the practical expedient which allows for estimation of the fair value of an investment in an investment entity based on NAV or its equivalent if the NAV of the investment entity is calculated in a manner consistent with the Accounting Standards Codification ("ASC") 946. Because of the inherent uncertainty of valuations of the investments in the private funds, their estimated values may differ significantly from the values that would have been used had a ready market for the private funds existed, and the differences could be material. Corporate bonds, convertible corporate bonds, mortgage-backed securities, sovereign debt obligations and senior loans are valued at mid-level prices provided by independent pricing services. Exchange traded derivatives such as warrants, rights, options and futures contracts are valued at last sales price on the valuation date or, if such price is not available, the mean between the last bid and ask prices (the "mid-price") from the exchange on which they are principally traded. Non-exchange traded derivatives whose underlying reference assets are exchanged traded products (such as total return swaps) are fair valued using the last sales price or mid-price of the underlying reference asset. Other non-exchange traded derivatives (such as credit default swaps) are valued by independent pricing services, which use various techniques including industry standard pricing models, to determine the fair value of those instruments. Investments for which market quotations are not readily available (including common stock, preferred stock, participation agreements, SPACs, warrants and simple agreement for future equity contracts) are valued by third-party valuation specialists or at cost, which approximates fair market value.

*Options, Futures, Swaps and Other Derivatives*. Exchange-traded equity options for which market quotations are readily available are valued at the mean of the last bid and ask prices as quoted on the exchange or the board of trade on which such options are traded. In the event that there is no mean price available for an exchange traded equity option held by the Fund on a day on which the Fund values such option, the last bid (long positions) or ask (short positions) price, if available, will be used as the value of such option. If no bid or ask price is available on a day on which the Fund values such option, the prior day's price will be used, unless the Adviser determines that such prior day's price no longer reflects the fair value of the option, in which case such option will be treated as a fair value asset. OTC derivatives may be valued using a mathematical model which may incorporate a number of market data factors. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their last sale price or settle price as of the close of such exchanges. Swap agreements and other derivatives are generally valued daily based upon quotations from market makers or by a pricing service in accordance with the Valuation Policy (as defined below).

*Underlying Funds*. Shares of underlying open-end funds (including money market funds) are valued at the NAV reported by the funds. Shares of underlying exchange-traded closed-end funds and ETFs will be valued at their most recent closing price.

*General Valuation Information*. In determining the market value of portfolio investments, the Fund may employ independent third party pricing services, which may use, without limitation, a matrix or formula method that takes into consideration market indexes, matrices, yield curves and other specified inputs and assumptions. This may result in the assets being valued at a price different from the price that would have been determined had the matrix or formula method not been used. The price the Fund could receive upon the sale of any particular portfolio investment may differ from the Fund's valuation of the investment, particularly for assets that trade in thin or volatile markets or that are valued using a fair valuation methodology or a price provided by an independent pricing service. As a result, the price received upon the sale of an investment may be less than the value ascribed by the Fund, and the Fund could realize a greater than expected loss or lesser than expected gain upon the sale of the investment. The Fund's ability to value its investments may also be impacted by technological issues and/or errors by pricing services or other third party service providers.

All cash, receivables and current payables are carried on the Fund's books at their fair value.

Prices obtained from independent third party pricing services, broker-dealers or market makers to value the Fund's securities and other assets and liabilities are based on information available at the time the Fund values its assets and liabilities. In the event that a pricing service quotation is revised or updated subsequent to the day on which the Fund valued such security, the revised pricing service quotation generally will be applied prospectively. Such determination will be made considering pertinent facts and circumstances surrounding the revision.

In the event that application of the methods of valuation discussed above result in a price for a security which is deemed not to be representative of the fair market value of such security, the security will be valued by, under the direction of or in accordance with a method approved by the Adviser, the Fund's valuation designee, as reflecting fair value. All other assets and liabilities (including securities for which market quotations are not readily available) held by the Fund (including restricted securities) are valued at fair value as determined in good faith by the Adviser pursuant to the Valuation Policy. Any assets and liabilities which are denominated in a foreign currency are translated into U.S. dollars at the prevailing market rates.

Certain of the securities acquired by the Fund may be traded on foreign exchanges or OTC markets on days on which the Fund's NAV is not calculated. In such cases, the NAV of the Fund's common shares may be significantly affected on days when investors can neither purchase nor sell shares of the Fund.

*Fair Value*. Investments held by the Fund are recorded at fair value in accordance with ASC 820, "Fair Value Measurements and Disclosures" ("ASC 820"). As defined in ASC 820, fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. In accordance with Rule 2a-5 promulgated under the Investment Company Act, the Board has appointed the Adviser as the Fund's valuation designee. In that role, it has established a Valuation Committee (the "Committee") that oversees the valuation of the Fund's investments pursuant to procedures adopted by the Adviser (the "Valuation Policy"). Under Rule 2a-5, the Board has assigned to the Adviser general responsibility for determining, in accordance with the Valuation Policy, the value of its investments. The Committee is led by the Adviser's Chief Financial Officer and other senior executives of the Adviser. Additionally, the Adviser's portfolio managers, whose roles are limited to providing insight into recent trade activity and overall market performance, are also members of the Committee. The majority of Committee members are independent of the Fund's portfolio investment decisions. The Committee meets on a monthly basis and is responsible for compliance and consistent application of the Valuation Policy.

The fair value of one or more assets or liabilities may not, in retrospect, be the price at which those assets or liabilities could have been sold during the period in which the particular fair values were used in determining the Fund's NAV. As a result, the Fund's sale or repurchase of its shares at NAV, at a time when a holding or holdings are valued at fair value, may have the effect of diluting or increasing the economic interest of existing shareholders.

The Fund's annual audited financial statements, which are prepared in accordance with accounting principles generally accepted in the United States of America ("US GAAP"), follow the requirements for valuation set forth in ASC 820, which defines and establishes a framework for measuring fair value under US GAAP and expands financial statement disclosure requirements relating to fair value measurements.

Generally, ASC 820 and other accounting rules applicable to funds and various assets in which they invest are evolving. Such changes may adversely affect the Fund. For example, the evolution of rules governing the determination of the fair market value of assets or liabilities, to the extent such rules become more stringent, would tend to increase the cost and/or reduce the availability of third-party determinations of fair market value. This may in turn increase the costs associated with selling assets or affect their liquidity due to the Fund's inability to obtain a third-party determination of fair market value.

**DISTRIBUTIONS**

The Fund has, with the approval of the Board, adopted a managed distribution plan (the "Managed Distribution Plan"), pursuant to which the Fund will make monthly distributions to shareholders at a fixed amount of $0.085 per share. This fixed distribution amount excludes any special dividends, which are not paid pursuant to the Managed Distribution Plan.

The Fund will generally distribute amounts necessary to satisfy the Managed Distribution Plan and the requirements prescribed by excise tax rules and Subchapter M of the Code. The Managed Distribution Plan is intended to provide shareholders with a constant, but not guaranteed, fixed minimum rate of distribution each month and is intended to narrow the discount between the market price and the NAV of the Fund's common shares, but there is no assurance that the Managed Distribution Plan will be successful in doing so. No conclusions should be drawn about the Fund's investment performance from the amount of the Fund's distribution or from the terms of the Managed Distribution Plan.

Under the Managed Distribution Plan, to the extent that sufficient investment income is not available on a monthly basis, the Fund will distribute capital gains and/or return of capital in order to maintain its managed distribution rate. A return of capital may occur, for example, when some or all of the money that was invested in the Fund is paid back to shareholders. A return of capital distribution does not necessarily reflect the Fund's investment performance and should not be confused with "yield" or "income".

The Managed Distribution Plan provides that the Board may amend the terms of the Managed Distribution Plan or terminate the Managed Distribution Plan at any time without prior notice to Fund shareholders; however, at this time, there are no reasonably foreseeable circumstances that might cause the Fund to terminate the Managed Distribution Plan. An amendment or termination of the Managed Distribution Plan could have an adverse effect on the market price of the Fund's common shares. The Managed Distribution Plan will be subject to the periodic review by the Board, including a yearly review of the annual minimum fixed rate to determine if an adjustment should be made.

Various factors will affect the level of the Fund's income, including the asset mix and the Fund's use of hedging. To permit the Fund to maintain a more stable monthly distribution, the Fund may from time to time distribute less than the fixed distribution amount. The undistributed income would be available to supplement future distributions. As a result, the distributions paid by the Fund for any particular monthly period may be more or less than the fixed distribution amount. Undistributed income will add to the Fund's NAV and, correspondingly, distributions from undistributed income will deduct from the Fund's NAV.

Under normal market conditions, the Adviser seeks to manage the Fund in a manner such that the Fund's distributions are reflective of the Fund's current and projected earnings levels. The distribution level of the Fund is subject to change based upon a number of factors, including the current and projected level of the Fund's earnings, and may fluctuate over time.

**REINVESTMENT PROGRAM**

The Fund maintains a Shareholder Reinvestment Program (the "Reinvestment Program") that allows participating shareholders to reinvest dividends in additional common shares of the Fund. Pursuant to the Reinvestment Program, ALPS Fund Services, Inc. (the "Program Administrator") purchases, from time to time, common shares on the open market to satisfy dividend reinvestments. Such common shares are purchased on the open market only when the closing sale or bid price plus commission is less than the NAV per share of the Fund's common shares on the valuation date. If the market price plus commissions is equal to or exceeds NAV, new common shares are issued by the Fund at the greater of (i) NAV or (ii) the market price of the common shares during the pricing period, minus a discount of 5%. Common shares issued by the Fund under the Reinvestment Program will be issued without a fee or a commission.

Shareholders may elect to participate in the Reinvestment Program by submitting a completed participation form to the Program Administrator. The Program Administrator will credit to each participant's account funds it receives from dividends paid on common shares of the Fund registered in the participant's name. Shareholders may elect to close their account at any time by giving the transfer agent written notice. When a participant closes their account, the participant, upon request, will receive a certificate for full common shares in the account. Fractional common shares will be held and aggregated with other fractional common shares being liquidated by the transfer agent as agent of the Reinvestment Program and paid for by check when actually sold. Participants will pay a pro rata share of brokerage commissions with respect to the Program Administrator's open market purchases in connection with the reinvestment of dividends.

The automatic reinvestment of dividends does not affect the tax characterization of the dividends (i.e., capital gain distributions and income distributions are realized and subject to tax even though cash is not received). A shareholder whose dividends are reinvested in common shares under the Reinvestment Program will be treated as having received a dividend equal to either (i) if common shares are issued under the Reinvestment Program directly by the Fund, generally the fair market value of the common shares issued to the shareholder or (ii) if the reinvestment is made through open market purchases, the amount of cash allocated to the shareholder for the purchase of common shares on its behalf in the open market. Additional information about the Reinvestment Program may be obtained by contacting the Program Administrator at 844-460-9411 or BRWSabaCapital@dstsystems.com.

**RIGHTS OFFERINGS**

The Fund may in the future, and at its discretion, choose to make offerings of rights to its shareholders to purchase common shares. Rights may be issued independently or together with any other offered security and may or may not be transferable by the person purchasing or receiving the rights. In connection with a rights offering to shareholders, we would distribute certificates or other documentation (i.e., rights cards distributed in lieu of certificates) evidencing the rights and a Prospectus Supplement to our shareholders as of the record date that we set for determining the shareholders eligible to receive rights in such rights offering. Any such future rights offering will be made in accordance with the Investment Company Act.

The staff of the SEC has interpreted the Investment Company Act as not requiring shareholder approval of a transferable rights offering to purchase common shares at a price below the then current NAV so long as certain conditions are met, including: (i) a good faith determination by a fund's board that such offering would result in a net benefit to existing shareholders; (ii) the offering fully protects shareholders' preemptive rights and does not discriminate among shareholders (except for the possible effect of not offering fractional rights); (iii) management uses its best efforts to ensure an adequate trading market in the rights for use by shareholders who do not exercise such rights; and (iv) the ratio of a transferable rights offering does not exceed one new share for each three rights held. A rights offering may substantially dilute the aggregate net asset value of the shares owned by shareholders who do not fully exercise their rights and that these shareholders should expect upon completion of the offering to own smaller proportional interest in the Fund than before the offering. The applicable Prospectus Supplement would describe the following terms of the rights in respect of which this Prospectus is being delivered:

● the period of time the offering would remain open;

● the underwriter or distributor, if any, of the rights and any associated underwriting fees or discounts applicable to purchases of the rights;

● the title of such rights;

● the exercise price for such rights (or method of calculation thereof);

● the number of such rights issued in respect of each share;

● the number of rights required to purchase a single share;

● the extent to which such rights are transferable and the market on which they may be traded if they are transferable;

● if applicable, a discussion of the material U.S. federal income tax considerations applicable to the issuance or exercise of such rights;

● the date on which the right to exercise such rights will commence, and the date on which such right will expire (subject to any extension);

● the extent to which such rights include an over-subscription privilege with respect to unsubscribed securities and the terms of such oversubscription privilege; and

● termination rights we may have in connection with such rights offering.

A certain number of rights would entitle the holder of the right(s) to purchase for cash such number of common shares at such exercise price as in each case is set forth in, or be determinable as set forth in, the Prospectus Supplement relating to the rights offered thereby. Rights would be exercisable at any time up to the close of business on the expiration date for such rights set forth in the Prospectus Supplement. After the close of business on the expiration date, all unexercised rights would become void. Upon expiration of the rights offering and the receipt of payment and the rights certificate or other appropriate documentation properly executed and completed and duly executed at the corporate trust office of the rights agent, or any other office indicated in the Prospectus Supplement, the common shares purchased as a result of such exercise will be issued as soon as practicable. To the extent permissible under applicable law, we may determine to offer any unsubscribed offered securities directly to persons other than shareholders, to or through agents, underwriters or dealers or through a combination of such methods, as set forth in the applicable Prospectus Supplement.

**TAX MATTERS**

The following discussion is a brief summary of certain U.S. federal income tax considerations affecting the Fund and the purchase, ownership and disposition of the Fund's common shares. A more detailed discussion of the tax rules applicable to the Fund and its common shareholders can be found in the SAI that is incorporated by reference into this Prospectus. Except as otherwise noted, this discussion assumes you are a taxable U.S. holder (as defined below) and that you hold your common shares as capital assets for U.S. federal income tax purposes (generally, assets held for investment). This discussion is based upon current provisions of the Code, the regulations promulgated thereunder and judicial and administrative authorities, all of which are subject to change or differing interpretations by the courts or the Internal Revenue Service, possibly with retroactive effect. No attempt is made to present a detailed explanation of all U.S. federal tax concerns affecting the Fund and its common shareholders. The Fund has not sought and will not seek any ruling from the Internal Revenue Service regarding any matters discussed herein. No assurance can be given that the Internal Revenue Service would not assert, or that a court would not sustain, a position contrary to those set forth below. This summary does not discuss any aspects of non-U.S., state or local tax. **The discussion set forth herein does not constitute tax advice and potential investors are urged to consult their own tax advisers to determine the specific U.S. federal, state, local and foreign tax consequences to them of investing in the Fund**.

In addition, no attempt is made to address tax considerations applicable to an investor with a special tax status, such as without limitation, a financial institution, REIT, insurance company, regulated investment company, individual retirement account, other tax-exempt organization, dealer in securities or currencies, person holding shares of the Fund as part of a hedging, integrated, conversion or straddle transaction, trader in securities that has elected the mark-to-market method of accounting for its securities, U.S. holder (as defined below) whose functional currency is not the U.S. dollar, investor with "applicable financial statements" within the meaning of Section 451(b) of the Code, or non-U.S. investor. Furthermore, this discussion does not reflect possible application of the alternative minimum tax.

A U.S. holder is a beneficial owner that is for U.S. federal income tax purposes:

● a citizen or individual resident of the United States (including certain former citizens and former long-term residents);

● a corporation or other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the United States or any state thereof or the District of Columbia;

● an estate, the income of which is subject to U.S. federal income taxation regardless of its source; or

● a trust with respect to which a court within the United States is able to exercise primary supervision over its administration and one or more U.S. persons have the authority to control all of its substantial decisions or the trust has made a valid election in effect under applicable Treasury regulations to be treated as a U.S. person for U.S. federal income tax purposes, whose status as a U.S. person is not overridden by an applicable tax treaty.

**Taxation of the Fund**

The Fund has elected to be treated as a RIC under Subchapter M of the Code. In order to qualify as a RIC, the Fund must, among other things, satisfy certain requirements relating to the sources of its income, diversification of its assets, and distribution of its income to its shareholders. First, the Fund must derive at least 90% of its annual gross income from dividends, interest, payments with respect to securities loans, gains from the sale or other disposition of stock or securities or foreign currencies, or other income (including but not limited to gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies, or net income derived from interests in "qualified publicly traded partnerships" (as defined in the Code) (the "90% gross income test"). Second, the Fund must diversify its holdings so that, at the close of each quarter of its taxable year, (i) at least 50% of the value of its total assets consists of cash, cash items, U.S. Government securities, securities of other RICs and other securities, with such other securities limited in respect of any one issuer to an amount not greater in value than 5% of the value of the Fund's total assets and to not more than 10% of the outstanding voting securities of such issuer, and (ii) not more than 25% of the market value of the total assets is invested in the securities (other than U.S. Government securities and securities of other RICs) of any one issuer, any two or more issuers controlled by the Fund and engaged in the same, similar or related trades or businesses, or any one or more "qualified publicly traded partnerships."

As long as the Fund qualifies as a RIC, the Fund will generally not be subject to corporate-level U.S. federal income tax on income and gains that it distributes each taxable year to its shareholders, provided that in such taxable year it distributes at least 90% of the sum of (i) its net tax-exempt interest income, if any, and (ii) its "investment company taxable income" (which includes, among other items, dividends, taxable interest, taxable original issue discount and market discount income, income from securities lending, net short-term capital gain in excess of net long-term capital loss, and any other taxable income other than "net capital gain" (as defined below) and is reduced by deductible expenses) determined without regard to the deduction for dividends paid. The Fund may retain for investment its net capital gain (which consists of the excess of its net long-term capital gain over its net short-term capital loss). However, if the Fund retains any net capital gain or any investment company taxable income, it will be subject to tax at regular corporate rates on the amount retained.

The Code imposes a 4% nondeductible excise tax on the Fund to the extent the Fund does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Fund's fiscal year). In addition, the minimum amounts that must be distributed in any year to avoid the excise tax will be increased or decreased to reflect any under-distribution or over-distribution, as the case may be, from the previous year. For purposes of the excise tax, the Fund will be deemed to have distributed any income on which it paid U.S. federal income tax. While the Fund intends to distribute any income and capital gain in the manner necessary to minimize imposition of the 4% nondeductible excise tax, there can be no assurance that sufficient amounts of the Fund's taxable income and capital gain will be distributed to entirely avoid the imposition of the excise tax. In that event, the Fund will be liable for the excise tax only on the amount by which it does not meet the foregoing distribution requirement.

If in any taxable year the Fund should fail to qualify under Subchapter M of the Code for tax treatment as a RIC, the Fund would incur a regular corporate U.S. federal income tax upon all of its taxable income for that year, and all distributions to its shareholders (including distributions of net capital gain) would be taxable to shareholders as ordinary dividend income for U.S. federal income tax purposes to the extent of the Fund's earnings and profits. Provided that certain holding period and other requirements were met, such dividends would be eligible (i) to be treated as qualified dividend income in the case of shareholders taxed as individuals and (ii) for the dividends received deduction in the case of corporate shareholders. In addition, to qualify again to be taxed as a RIC in a subsequent year, the Fund would be required to distribute to shareholders its earnings and profits attributable to non-RIC years. In addition, if the Fund failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, the Fund would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

The remainder of this discussion assumes that the Fund qualifies for taxation as a RIC.

*The Fund's Investments*. Certain of the Fund's investment practices are subject to special and complex U.S. federal income tax provisions (including mark-to-market, constructive sale, straddle, wash sale, short sale and other rules) that may, among other things, (i) disallow, suspend or otherwise limit the allowance of certain losses or deductions, (ii) convert lower taxed long-term capital gains or qualified dividend income into higher taxed short-term capital gains or ordinary income, (iii) convert ordinary loss or a deduction into capital loss (the deductibility of which is more limited), (iv) cause the Fund to recognize income or gain without a corresponding receipt of cash, (v) adversely affect the time as to when a purchase or sale of stock or securities is deemed to occur, (vi) adversely alter the characterization of certain complex financial transactions and (vii) produce income that will not be "qualified" income for purposes of the 90% annual gross income requirement described above. These U.S. federal income tax provisions could therefore affect the amount, timing and character of distributions to common shareholders. The Fund intends to monitor its transactions and may make certain tax elections and may be required to dispose of securities to mitigate the effect of these provisions and prevent disqualification of the Fund as a RIC. Additionally, the Fund may be required to limit its activities in derivative instruments in order to enable it to maintain its RIC status.

The Fund may invest a portion of its net assets in below investment grade securities. Investments in these types of securities may present special tax issues for the Fund. U.S. federal income tax rules are not entirely clear about issues such as when the Fund may cease to accrue interest, original issue discount or market discount, when and to what extent deductions may be taken for bad debts or worthless securities, how payments received on obligations in default should be allocated between principal and income and whether modifications or exchanges of debt obligations in a bankruptcy or workout context are taxable. These and other issues could affect the Fund's ability to distribute sufficient income to preserve its status as a RIC or to avoid the imposition of U.S. federal income or excise tax.

Certain debt securities acquired by the Fund may be treated as debt securities that were originally issued at a discount. Generally, the amount of the original issue discount is treated as interest income and is included in taxable income (and required to be distributed by the Fund in order to qualify as a RIC and avoid U.S. federal income tax or the 4% excise tax on undistributed income) over the term of the security, even though payment of that amount is not received until a later time, usually when the debt security matures.

If the Fund purchases a debt security on a secondary market at a price lower than its adjusted issue price, the excess of the adjusted issue price over the purchase price is "market discount." Unless the Fund makes an election to accrue market discount on a current basis, generally, any gain realized on the disposition of, and any partial payment of principal on, a debt security having market discount is treated as ordinary income to the extent the gain, or principal payment, does not exceed the "accrued market discount" on the debt security. Market discount generally accrues in equal daily installments. If the Fund ultimately collects less on the debt instrument than its purchase price plus the market discount previously included in income, the Fund may not be able to benefit from any offsetting loss deductions.

The Fund may invest in preferred securities or other securities the U.S. federal income tax treatment of which may not be clear or may be subject to recharacterization by the Internal Revenue Service. To the extent the tax treatment of such securities or the income from such securities differs from the tax treatment expected by the Fund, it could affect the timing or character of income recognized by the Fund, potentially requiring the Fund to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to RICs under the Code.

Gain or loss on the sale of securities by the Fund will generally be long-term capital gain or loss if the securities have been held by the Fund for more than one year. Gain or loss on the sale of securities held for one year or less will be short-term capital gain or loss.

Because the Fund may invest in foreign securities, its income from such securities may be subject to non-U.S. taxes.

Foreign currency gain or loss on foreign currency exchange contracts, non-U.S. dollar-denominated securities contracts, and non-U.S. dollar-denominated futures contracts, options and forward contracts that are not section 1256 contracts (as defined below) generally will be treated as ordinary income and loss.

Income from options on individual securities written by the Fund will generally not be recognized by the Fund for tax purposes until an option is exercised, lapses or is subject to a "closing transaction" (as defined by applicable regulations) pursuant to which the Fund's obligations with respect to the option are otherwise terminated. If the option lapses without exercise, the premiums received by the Fund from the writing of such options will generally be characterized as short-term capital gain. If the Fund enters into a closing transaction, the difference between the premiums received and the amount paid by the Fund to close out its position will generally be treated as short-term capital gain or loss. If an option written by the Fund is exercised, thereby requiring the Fund to sell the underlying security, the premium will increase the amount realized upon the sale of the security, and the character of any gain on such sale of the underlying security as short-term or long-term capital gain will depend on the holding period of the Fund in the underlying security. Because the Fund will not have control over the exercise of the options it writes, such exercises or other required sales of the underlying securities may cause the Fund to realize gains or losses at inopportune times.

Index options that qualify as "section 1256 contracts" will generally be "marked-to-market" for U.S. federal income tax purposes. As a result, the Fund will generally recognize gain or loss on the last day of each taxable year equal to the difference between the value of the option on that date and the adjusted basis of the option. The adjusted basis of the option will consequently be increased by such gain or decreased by such loss. Any gain or loss with respect to options on indices and sectors that qualify as "section 1256 contracts" will be treated as short-term capital gain or loss to the extent of 40% of such gain or loss and long-term capital gain or loss to the extent of 60% of such gain or loss. Because the mark-to-market rules may cause the Fund to recognize gain in advance of the receipt of cash, the Fund may be required to dispose of investments in order to meet its distribution requirements. "Mark-to-market" losses may be suspended or otherwise limited if such losses are part of a straddle or similar transaction.

**Taxation of Common Shareholders**

Fund distributions of its tax-exempt interest on municipal securities, if properly reported by the Fund to its shareholders ("exempt-interest dividends"), will generally be exempt from regular federal income tax. In order for the Fund to pay exempt-interest dividends, at least 50% of the value of the Fund's total assets must consist of tax-exempt obligations on a quarterly basis. If the Fund does not meet this requirement, it would not be able to pay tax-exempt dividends, and your distributions attributable to interest received by the Fund from any source (including distributions of tax-exempt interest income) would be taxable as ordinary income to the extent of the Fund's earnings and profits.

The Fund will either distribute or retain for reinvestment all or part of its net capital gain. If any such gain is retained, the Fund will be subject to a corporate income tax on such retained amount. In that event, the Fund expects to report the retained amount as undistributed capital gain in a notice to its common shareholders, each of whom, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income for U.S. federal income tax purposes as long-term capital gain its share of such undistributed amounts, (ii) will be entitled to credit its proportionate share of the tax paid by the Fund against its U.S. federal income tax liability and to claim refunds to the extent that the credit exceeds such liability and (iii) will increase its basis in its common shares by the amount of undistributed capital gains included in the shareholder's income less the tax deemed paid by the shareholder under clause (ii).

Distributions paid to you by the Fund from its net capital gain, if any, that the Fund properly reports as capital gain dividends ("capital gain dividends") are taxable as long-term capital gains, regardless of how long you have held your common shares. All other dividends paid to you by the Fund (including dividends from net short-term capital gains) from its current or accumulated earnings and profits, other than exempt-interest dividends ("ordinary income dividends") are generally subject to tax as ordinary income. Provided that certain holding period and other requirements are met, ordinary income dividends (if properly reported by the Fund) may qualify (i) for the dividends received deduction in the case of corporate shareholders to the extent that the Fund's income consists of dividend income from U.S. corporations, and (ii) in the case of individual shareholders, as "qualified dividend income" eligible to be taxed at long-term capital gains rates to the extent that the Fund receives qualified dividend income.

Qualified dividend income is, in general, dividend income from taxable domestic corporations and certain qualified foreign corporations (e.g., generally, foreign corporations incorporated in a possession of the United States or in certain countries with a qualifying comprehensive tax treaty with the United States, or whose stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States). There can be no assurance as to what portion, if any, of the Fund's distributions will constitute qualified dividend income or be eligible for the dividends received deduction.

Any distributions you receive that are in excess of the Fund's current and accumulated earnings and profits will be treated as a return of capital to the extent of your adjusted tax basis in your common shares, and thereafter as capital gain from the sale of common shares. The amount of any Fund distribution that is treated as a return of capital will reduce your adjusted tax basis in your common shares, thereby increasing your potential gain or reducing your potential loss on any subsequent sale or other disposition of your common shares.

Common shareholders may be entitled to offset their capital gain dividends with capital losses. The Code contains a number of statutory provisions affecting when capital losses may be offset against capital gain, and limiting the use of losses from certain investments and activities. Accordingly, common shareholders that have capital losses are urged to consult their tax advisers.

Dividends and other taxable distributions are taxable to you even though they are reinvested in additional common shares of the Fund. Dividends and other distributions paid by the Fund are generally treated under the Code as received by you at the time the dividend or distribution is made. If, however, the Fund pays you a dividend in January that was declared in the previous October, November or December to common shareholders of record on a specified date in one of such months, then such dividend will be treated for U.S. federal income tax purposes as being paid by the Fund and received by you on December 31 of the year in which the dividend was declared. In addition, certain other distributions made after the close of the Fund's taxable year may be "spilled back" and treated as paid by the Fund (except for purposes of the 4% nondeductible excise tax) during such taxable year. In such case, you will be treated as having received such dividends in the taxable year in which the distributions were actually made.

Interest on certain "private activity bonds" is an item of tax preference subject to the alternative minimum tax on individuals. The Fund may invest a portion of its assets in municipal bonds subject to this provision so that a portion of its exempt-interest dividends is an item of tax preference to the extent such dividends represent interest received from these private activity bonds. Accordingly, investment in the Fund could cause a holder of common shares to be subject to, or result in an increased liability under, the alternative minimum tax.

Exempt-interest dividends are included in determining what portion, if any, of a person's Social Security and railroad retirement benefits will be includable in gross income subject to federal income tax.

The price of common shares purchased at any time may reflect the amount of a forthcoming distribution. Those purchasing common shares just prior to the record date of a distribution will receive a distribution which will be taxable to them even though it represents, economically, a return of invested capital.

The Fund will send you information after the end of each year setting forth the amount and tax status of any distributions paid to you by the Fund.

The sale or other disposition of common shares will generally result in capital gain or loss to you and will be long-term capital gain or loss if you have held such common shares for more than one year at the time of sale. Any loss upon the sale or other disposition of common shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain dividends received (including amounts credited as an undistributed capital gain dividend) by you with respect to such common shares. Any loss you recognize on a sale or other disposition of common shares will be disallowed if you acquire other common shares (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning 30 days before and ending 30 days after your sale or exchange of the common shares. In such case, your tax basis in the common shares acquired will be adjusted to reflect the disallowed loss.

If the Fund liquidates, shareholders generally will realize capital gain or loss upon such liquidation in an amount equal to the difference between the amount of cash or other property received by the shareholder (including any property deemed received by reason of its being placed in a liquidating trust) and the shareholder's adjusted tax basis in its common shares. Any such gain or loss will be long-term if the shareholder is treated as having a holding period in the Fund shares of greater than one year, and otherwise will be short-term.

Current U.S. federal income tax law taxes both long-term and short-term capital gain of corporations at the rates applicable to ordinary income. For non-corporate taxpayers, short-term capital gain is currently taxed at rates applicable to ordinary income while long-term capital gain generally is taxed at a reduced maximum rate. The deductibility of capital losses is subject to limitations under the Code.

Certain U.S. holders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare tax on all or a portion of their "net investment income," which includes dividends received from the Fund and capital gains from the sale or other disposition of the Fund's common shares.

A common shareholder that is a nonresident alien individual or a foreign corporation (a "foreign investor") generally will be subject to U.S. federal withholding tax at the rate of 30% (or possibly a lower rate provided by an applicable tax treaty) on ordinary income dividends (except as discussed below). In general, U.S. federal withholding tax and U.S. federal income tax will not apply to any gain or income realized by a foreign investor in respect of any distribution of exempt-interest dividends or net capital gain (including amounts credited as an undistributed capital gain dividend) or upon the sale or other disposition of common shares of the Fund. Different tax consequences may result if the foreign investor is engaged in a trade or business in the United States or, in the case of an individual, is present in the United States for 183 days or more during a taxable year and certain other conditions are met. Foreign investors should consult their tax advisers regarding the tax consequences of investing in the Fund's common shares.

Ordinary income dividends properly reported by a RIC are generally exempt from U.S. federal withholding tax where they (i) are paid in respect of the RIC's "qualified net interest income" (generally, its U.S.-source interest income, other than certain contingent interest and interest from obligations of a corporation or partnership in which the RIC is at least a 10% shareholder, reduced by expenses that are allocable to such income) or (ii) are paid in respect of the RIC's "qualified short-term capital gains" (generally, the excess of the RIC's net short-term capital gain over its long-term capital loss for such taxable year). Depending on its circumstances, the Fund may report all, some or none of its potentially eligible dividends as such qualified net interest income or as qualified short-term capital gains, and/or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for this exemption from withholding, a foreign investor needs to comply with applicable certification requirements relating to its non-U.S. status (including, in general, furnishing an IRS Form W-8BEN, W-8BEN-E or substitute Form). In the case of common shares held through an intermediary, the intermediary may have withheld tax even if the Fund reported the payment as qualified net interest income or qualified short-term capital gain. Foreign investors should contact their intermediaries with respect to the application of these rules to their accounts. There can be no assurance as to what portion of the Fund's distributions would qualify for favorable treatment as qualified net interest income or qualified short-term capital gains.

In addition, withholding at a rate of 30% will apply to dividends paid in respect of common shares of the Fund held by or through certain foreign financial institutions (including investment funds), unless such institution enters into an agreement with the Treasury to report, on an annual basis, information with respect to shares in, and accounts maintained by, the institution to the extent such shares or accounts are held by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments. Accordingly, the entity through which common shares of the Fund are held will affect the determination of whether such withholding is required. Similarly, dividends paid in respect of common shares of the Fund held by an investor that is a non-financial foreign entity that does not qualify under certain exemptions will be subject to withholding at a rate of 30%, unless such entity either (i) certifies that such entity does not have any "substantial United States owners" or (ii) provides certain information regarding the entity's "substantial United States owners," which the Fund or applicable withholding agent will in turn provide to the Secretary of the Treasury. An intergovernmental agreement between the United States and an applicable foreign country, or future Treasury regulations or other guidance, may modify these requirements. The Fund will not pay any additional amounts to common shareholders in respect of any amounts withheld. Foreign investors are encouraged to consult with their tax advisers regarding the possible implications of these rules on their investment in the Fund's common shares.

U.S. federal backup withholding tax may be required on dividends, distributions and sale proceeds payable to certain non-exempt common shareholders who fail to supply their correct taxpayer identification number (in the case of individuals, generally, their social security number) or to make required certifications, or who are otherwise subject to backup withholding. Backup withholding is not an additional tax and any amount withheld may be refunded or credited against your U.S. federal income tax liability, if any, provided that you timely furnish the required information to the Internal Revenue Service.

Ordinary income dividends, capital gain dividends, and gain from the sale or other disposition of common shares of the Fund also may be subject to state, local, and/or foreign taxes. Common shareholders are urged to consult their own tax advisers regarding specific questions about U.S. federal, state, local or foreign tax consequences to them of investing in the Fund.

**The foregoing is a general and abbreviated summary of certain provisions of the Code and the Treasury regulations currently in effect as they directly govern the taxation of the Fund and its common shareholders. These provisions are subject to change by legislative or administrative action, and any such change may be retroactive. A more detailed discussion of the tax rules applicable to the Fund and its common shareholders can be found in the SAI that is incorporated by reference into this Prospectus. Common shareholders are urged to consult their tax advisers regarding specific questions as to U.S. federal, state, local and foreign income or other taxes.**

Please refer to the SAI for more detailed information. You are urged to consult your tax adviser.

**TAXATION OF HOLDERS OF RIGHTS**

The value of a right will not be includible in the income of a common shareholder at the time the right is issued.

The basis of a right issued to a common shareholder will be zero, and the basis of the share with respect to which the subscription right was issued (the old share) will remain unchanged, unless either (a) the fair market value of the right on the date of distribution is at least 15% of the fair market value of the old share, or (b) such shareholder affirmatively elects (in the manner set out in Treasury regulations under the Code) to allocate to the subscription right a portion of the basis of the old share. If either (a) or (b) applies, then except as described below such shareholder must allocate basis between the old share and the right in proportion to their fair market values on the date of distribution.

The basis of a right purchased in the market will generally be its purchase price.

The holding period of a right issued to a common shareholder will include the holding period of the old share. No gain or loss will be recognized by a common shareholder upon the exercise of a right.

No loss will be recognized by a common shareholder if a right distributed to such common shareholder expires unexercised because the basis of the old share may be allocated to a right only if the right is exercised. If a right that has been purchased in the market expires unexercised, there will be a recognized loss equal to the basis of the right.

Any gain or loss on the sale of a right will be a capital gain or loss if the right is held as a capital asset (which in the case of rights issued to common shareholders will depend on whether the old share of beneficial interest is held as a capital asset), and will be a long-term capital gain or loss if the holding period is deemed to exceed one year.

**CLOSED-END FUND STRUCTURE**

The Fund is a non-diversified, closed-end management investment company (commonly referred to as a closed-end fund). Closed-end funds differ from open-end funds (which are generally referred to as mutual funds) in that closed-end funds generally list their shares for trading on a stock exchange and do not redeem their shares at the request of the shareholder. This means that if you wish to sell your shares of a closed-end fund you must trade them on the stock exchange like any other stock at the prevailing market price at that time. In a mutual fund, if the shareholder wishes to sell shares of the fund, the mutual fund will redeem or buy back the shares at NAV. Also, mutual funds generally offer new shares on a continuous basis to new investors and closed-end funds generally do not. The continuous inflows and outflows of assets in a mutual fund can make it difficult to manage the fund's investments. By comparison, closed-end funds are generally able to stay more fully invested in securities that are consistent with their investment objective and also have greater flexibility to make certain types of investments and to use certain investment strategies, such as financial leverage and investments in illiquid securities.

Shares of closed-end funds frequently trade at a discount to their NAV. Because of this possibility and the recognition that any such discount may not be in the interest of shareholders, the Board might consider from time to time engaging in open-market repurchases, tender offers for shares or other programs intended to reduce the discount. We cannot guarantee or assure, however, that the Board will decide to engage in any of these actions. Nor is there any guarantee or assurance that such actions, if undertaken, would result in the shares trading at a price equal or close to the NAV. See "Repurchase of Common Shares" below and "Repurchase of Common Shares" in the SAI. The Board might also consider converting the Fund to an open-end mutual fund, which would also require a vote of the shareholders of the Fund.

**REPURCHASE OF COMMON SHARES**

Shares of closed-end investment companies often trade at a discount to their NAVs and the Fund's common shares may also trade at a discount to their NAV, although it is possible that they may trade at a premium above NAV. The market price of the Fund's common shares will be determined by such factors as relative demand for and supply of such common shares in the market, the Fund's NAV, general market and economic conditions, market sentiment and other factors beyond the control of the Fund. See "Net Asset Value" and "Description of Shares-Common Shares." Although the Fund's common shareholders will not have the right to redeem their common shares, the Fund may take action to repurchase common shares in the open market or make tender offers for its common shares. This may have the effect of reducing any market discount from NAV.

There is no assurance that, if action is undertaken to repurchase or tender for common shares, such action will result in the common shares' trading at a price which approximates their NAV. Although share repurchases and tender offers could have a favorable effect on the market price of the Fund's common shares, you should be aware that the acquisition of common shares by the Fund will decrease the capital of the Fund and, therefore, may have the effect of increasing the Fund's expense ratio and decreasing the asset coverage with respect to any borrowings or preferred shares outstanding. Any share repurchases or tender offers will be made in accordance with the requirements of the Securities Exchange Act of 1934, as amended, the Investment Company Act and the principal stock exchange on which the common shares are traded. For additional information, see "Repurchase of Common Shares" in the SAI.

**PLAN OF DISTRIBUTION**

We may sell common shares, including to existing shareholders in a rights offering, through underwriters or dealers, directly to one or more purchasers (including existing shareholders in a rights offering), through agents, to or through underwriters or dealers, or through a combination of any such methods of sale. The applicable Prospectus Supplement will identify any underwriter or agent involved in the offer and sale of our common shares, any sales loads, discounts, commissions, fees or other compensation paid to any underwriter, dealer or agent, the offering price, net proceeds and use of proceeds and the terms of any sale. In the case of a rights offering, the applicable Prospectus Supplement will set forth the number of our common shares issuable upon the exercise of each right and the other terms of such rights offering.

The distribution of our common shares may be effected from time to time in one or more transactions at a fixed price or prices, which may be changed, at prevailing market prices at the time of sale, at prices related to such prevailing market prices, or at negotiated prices. Sales of our common shares may be made in transactions that are deemed to be "at the market" as defined in Rule 415 under the Securities Act, including sales made directly on the NYSE or sales made to or through a market maker other than on an exchange.

We may sell our common shares directly to, and solicit offers from, institutional investors or others who may be deemed to be underwriters as defined in the Securities Act for any resales of the securities. In this case, no underwriters or agents would be involved. We may use electronic media, including the Internet, to sell offered securities directly.

In connection with the sale of our common shares, underwriters or agents may receive compensation from us in the form of discounts, concessions or commissions. Underwriters may sell our common shares to or through dealers, and such dealers may receive compensation in the form of discounts, concessions or commissions from the underwriters and/or commissions from the purchasers for whom they may act as agents. Underwriters, dealers and agents that participate in the distribution of our common shares may be deemed to be underwriters under the Securities Act, and any discounts and commissions they receive from us and any profit realized by them on the resale of our common shares may be deemed to be underwriting discounts and commissions under the Securities Act. Any such underwriter or agent will be identified and any such compensation received from us will be described in the applicable Prospectus Supplement. We will not pay any compensation to any underwriter or agent in the form of warrants, options, consulting or structuring fees or similar arrangements.

If a Prospectus Supplement so indicates, we may grant the underwriters an option to purchase additional common shares at the public offering price, less the underwriting discounts and commissions, within 45 days from the date of the Prospectus Supplement, to cover any over-allotments.

Under agreements into which we may enter, underwriters, dealers and agents who participate in the distribution of our common shares may be entitled to indemnification by us against certain liabilities, including liabilities under the Securities Act. Underwriters, dealers and agents may engage in transactions with us, or perform services for us, in the ordinary course of business.

If so indicated in the applicable Prospectus Supplement, we will ourselves, or will authorize underwriters or other persons acting as our agents to solicit offers by certain institutions to purchase our common shares from us pursuant to contracts providing for payment and delivery on a future date. Institutions with which such contacts may be made include commercial and savings banks, insurance companies, pension funds, investment companies, educational and charitable institutions and others, but in all cases such institutions must be approved by us. The obligation of any purchaser under any such contract will be subject to the condition that the purchase of the common shares shall not at the time of delivery be prohibited under the laws of the jurisdiction to which such purchaser is subject. The underwriters and such other agents will not have any responsibility in respect of the validity or performance of such contracts. Such contracts will be subject only to those conditions set forth in the Prospectus Supplement, and the Prospectus Supplement will set forth the commission payable for solicitation of such contracts.

To the extent permitted under the Investment Company Act and the rules and regulations promulgated thereunder, the underwriters may from time to time act as brokers or dealers and receive fees in connection with the execution of our portfolio transactions after the underwriters have ceased to be underwriters and, subject to certain restrictions, each may act as a broker while it is an underwriter.

A Prospectus and accompanying Prospectus Supplement in electronic form may be made available on the websites maintained by underwriters. The underwriters may agree to allocate a number of securities for sale to their online brokerage account holders. Such allocations of securities for Internet distributions will be made on the same basis as other allocations. In addition, securities may be sold by the underwriters to securities dealers who resell securities to online brokerage account holders.

In order to comply with the securities laws of certain states, if applicable, our common shares offered hereby will be sold in such jurisdictions only through registered or licensed brokers or dealers.

**INCORPORATION BY REFERENCE**

This Prospectus is part of a registration statement that we have filed with the SEC. We are allowed to "incorporate by reference" the information that we file with the SEC, which means that we can disclose important information to you by referring you to those documents. We incorporate by reference into this Prospectus the documents listed below and any future filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, including any filings on or after the date of this Prospectus from the date of filing (excluding any information furnished, rather than filed), until we have sold all of the offered securities to which this Prospectus and any accompanying prospectus supplement relates or the offering is otherwise terminated. The information incorporated by reference is an important part of this Prospectus. Any statement in a document incorporated by reference into this Prospectus will be deemed to be automatically modified or superseded to the extent a statement contained in (1) this Prospectus or (2) any other subsequently filed document that is incorporated by reference into this Prospectus modifies or supersedes such statement. The documents incorporated by reference herein include:

● the Fund's SAI, dated [●], 2025, filed with this Prospectus; and

● the Fund's [annual report on Form N-CSR for the fiscal year ended October 31, 2024](http://www.sec.gov/Archives/edgar/data/826020/000139834425000241/fp0091519-1_ncsr.htm) , filed with the SEC on January 6, 2025, and the Fund's [semi-annual report on Form N-CSRS for the semi-annual period ended April 30, 2025](http://www.sec.gov/Archives/edgar/data/826020/000139834425012580/fp0094105-1_ncsrs.htm) , filed with the SEC on July 2, 2025.

The Fund will provide without charge to each person, including any beneficial owner, to whom this Prospectus is delivered, upon written or oral request, a copy of any and all of the documents that have been or may be incorporated by reference in this Prospectus or the accompanying prospectus supplement. You should direct requests for documents by calling:

Investor Relations

+1 888.615.4310

The Fund makes available this Prospectus, SAI and the Fund's annual and semi-annual reports, free of charge, at https://www.sabacef.com/saba-income-opportunities-fund. You may also obtain this Prospectus, the SAI, other documents incorporated by reference and other information the Fund files electronically, including reports and proxy statements, on the SEC website (http://www.sec.gov) or with the payment of a duplication fee, by electronic request at publicinfo@sec.gov. Information contained in, or that can be accessed through, the Fund's website is not incorporated by reference into this Prospectus and should not be considered to be part of this Prospectus or the accompanying prospectus supplement.

**PRIVACY NOTICE OF THE FUND**

This Privacy Notice sets forth the policies of the Adviser and any investment funds and accounts managed by the Adviser regarding the collection, use, storage, sharing, disclosure (collectively, "processing"), and protection of personal data. This notice applies to current, prospective, and former investors in or holders of the Fund.

For purposes of this Privacy Notice, "you" or an "investor" means any investor who is an individual, or any individual connected with an investor that is a legal person. Capitalized terms used but not defined herein have the meanings assigned to them in the applicable offering memorandum or advisory agreement of the relevant Fund (each, "Fund Document").

**Who To Contact About This Privacy Notice**

This Privacy Notice is provided in accordance with applicable privacy and data protection laws in jurisdictions where we operate (collectively, the "Data Protection Laws"). Each of the Fund and the Adviser are considered **data controllers** of your personal information for the purposes of certain Data Protection Laws, meaning we determine the purposes and means of processing your information.

For any questions about this Privacy Notice or requests regarding the personal data we hold, please contact us at **(212) 542-4635** or **dataprotection@sabacapital.com**.

Please note that certain service providers (the "Service Providers") of the Adviser and/or Fund (e.g., administrators, prime brokers, custodians, transfer agents, and legal advisers) process personal data under their own professional and legal obligations (such as anti-money laundering legislation). In these instances, such Service Providers act as data controllers in their own right and not on our instructions. For specific information or requests regarding processing by such Service Providers, you may contact them directly at the address in the relevant Client Document or via their websites.

**Types of Personal Data We May Collect and Use**

We may collect and use various categories of your personal data, including, but not limited to:

● **Contact & Identification:** Names, residential or business addresses, other contact details, signature, nationality, tax identification, passport, social security number, date/place of birth, jurisdiction of tax residence, photographs, copies of identification documents.

● **Financial & Account Information:** Bank account details, information about assets or net worth, credit history, investment activities, financial income (e.g., interest, dividends, income from insurance products), account balances, proceeds from property sale/redemption, or other financial information.

● **Sensitive Data:** In certain circumstances and where relevant (and as permitted by applicable Data Protection Laws), this may include information on political affiliations, ethnic origin, or criminal convictions, obtained from relevant materials, documents, or background searches, along with any other information required by applicable law or regulation.

**How We Collect Personal Daya**

We collect personal data about you through:

● **Direct Provision:** Information provided directly by you or another person on your behalf.

● **Transactions:** Information obtained in relation to any transactions between you and us.

● **Third Parties/Other Sources:** Our affiliates, Service Providers, publicly accessible databases or registers, tax authorities, governmental and non-governmental agencies, supervisory authorities, credit agencies, fraud prevention and detection agencies, or other publicly accessible sources (e.g., the internet).

**How We May Use Personal Information**

We may process your personal data for various business tasks, including but not limited to:

● Entering into advisory agreements or accepting subscription documentation.

● Administering our relationship with you, including processing subscriptions, redemptions, transfers, and discretionary transactions.

● Providing communications and reporting, and maintaining the registers of investors of the Fund.

● Marketing our products and services.

● Monitoring and analyzing our activities.

● Processing investments, withdrawals, and dividend payments.

● Maintaining global client and investor records, and providing centralized administrative, marketing, and client services.

● Investigating and resolving complaints; managing litigation; and monitoring electronic communications for fraud or crime detection or for regulatory reasons.

● Complying with applicable legal or regulatory requirements (e.g., anti-money laundering, fraud prevention, tax reporting, sanctions compliance, and responding to requests from supervisory authorities or law enforcement agencies).

We will use a permitted legal ground under applicable Data Protection Laws to process your personal information. Such grounds include where:

● Processing is necessary to perform our obligations under the applicable Client Documents.

● We are required to comply with a legal or regulatory obligation applicable to us.

● We, or a third party on our behalf, have determined that it is necessary for our legitimate interests to collect and use your personal information, particularly where we believe you have a reasonable expectation for such collection or use.

**Consequences of Failing to Provide Personal Information**

If personal data is required to satisfy a statutory obligation (including compliance with anti-money laundering or sanctions requirements) or a contractual requirement, failure to provide such information may result in your subscription being rejected or your shares/interests becoming subject to compulsory redemption or withdrawal. Where there is suspicion of unlawful activity, failure to provide personal data may lead to a report to the relevant law enforcement agency or supervisory authority.

**How We May Share Personal Data**

We may disclose your information to our affiliates, Service Providers, or other third parties to accept your subscription, administer and maintain your account(s), or otherwise perform our contractual obligations.

We may also share your personal information:

● With courts, ombudsmen, or regulatory, tax, or law enforcement authorities to comply with applicable legal or regulatory requirements.

● To respond to court orders, regulatory requests for information, administrative proceedings, or investigations.

● When we believe in good faith that disclosure is legally required or we or a Fund have a legitimate interest in making a disclosure (e.g., to protect our or a Fund's rights and property).

● If you direct us to do so.

● As necessary under anti-money laundering and similar laws to facilitate the establishment of trading relationships for the Fund with prime brokers, custodians, executing brokers, or other trading counterparties.

We may also disclose information about you, or your transactions and experiences with us, to our affiliates or service providers for our everyday business purposes, such as administration, record-keeping, IT system security, activity monitoring and reporting, investor relations, and compliance with legal and regulatory requirements.

**Retention Periods and Security Measures**

We retain personal data only as long as necessary for the purpose collected, subject to applicable Data Protection Laws. Personal data will generally be retained for the duration of your investment and for a minimum of five years after redemption, withdrawal, or Fund liquidation. We may retain data longer for marketing purposes or compliance with applicable law. We periodically review collected data to determine if retention remains purposeful.

To protect your personal information from unauthorized access and use, we implement organizational and technical security measures in accordance with applicable Data Protection Laws, including computer safeguards and secured files and buildings. We will notify you of any material personal data breaches affecting you as required by applicable Data Protection Laws.

**Additional Information Under U.S. Federal Law (Gramm-Leach-Bliley Act & Fair Credit Reporting Act)**

For U.S. federal law purposes, this Privacy Notice applies to current and former investors who are individuals or Individual Retirement Accounts.

● We may disclose information about our investors (current, prospective, or former) to affiliates (financial and non-financial companies related by common ownership or control) or non-affiliates (companies not related by common ownership or control) for our everyday business purposes (e.g., processing transactions, maintaining accounts, responding to court orders/legal investigations).

● Disclosure of investor information may also be necessary or appropriate under anti-money laundering and similar laws to accept subscriptions.

● We will release information if you direct us to do so.

● We may share your information with our affiliates for direct marketing (e.g., offers of products and services). **You may prevent this type of sharing by contacting us at (212) 542-4635 or dataprotection@sabacapital.com.** If you are a new investor, we can begin sharing with affiliates for direct marketing 30 days from the date this Privacy Notice was sent. If you are no longer an investor, we may continue to share your information with our affiliates for such purposes.

● You may contact us at any time to limit our sharing of your personal information at **(212) 542-4635** or **dataprotection@sabacapital.com.** If you limit sharing for a jointly held account, your choices apply to everyone on that account. U.S. state laws may grant you additional rights to limit sharing.

● We **do not** share your information with non-affiliates for them to market their own services to you. We may disclose information you provide to us to companies performing marketing services on our behalf (e.g., placement agents).

**Additional Information for California Residents**

If you are a California resident, California law may provide you with additional rights regarding our collection and use of your personal information. For more information, please refer to the **California Consumer Privacy Notice (Addendum I)** to this Privacy Notice.

**Additional Information Under the Cayman Islands Data Protections Act (2021 Revision) ("DPA")**

For investors in Fund organized under Cayman Islands law, the applicable Fund may share your personal information with Service Providers (including the Adviser, administrator, custodians, prime brokers, or others) located outside the Cayman Islands. Information may also be shared with the Cayman Islands Monetary Authority or the Tax Information Authority, who may exchange it with foreign tax authorities, regulatory bodies, or law enforcement agencies.

By submitting your personal data, you consent to its transfer to the Adviser and other recipients described in this notice located outside the Cayman Islands. Any such transfer will comply with the DPA. You may withdraw your consent at any time; this withdrawal will not affect the lawfulness of processing based on consent before its withdrawal.

You may have certain rights under the DPA, including:

● The right to be informed.

● The right of access.

● The right to rectification.

● The right to stop or restrict processing.

● The right to stop direct marketing.

● Rights in relation to automated decision making.

● The right to seek compensation.

● The right to complain to the supervisory authority.

To exercise these rights, please contact **(212) 542-4635** or **dataprotection@sabacapital.com**. Complaints regarding a Fund may be lodged with the Office of the Ombudsman in the Cayman Islands; however, we encourage you to contact us first to address any concerns.

**Additional Information Under the General Data Protection Regulation ("GDPR")**

You may have certain rights under EU General Data Protection Regulation and equivalent regulation in the United Kingdom (collectively, "GDPR") regarding our processing of your personal data. These include rights to:

● **Access:** Confirm if your personal data is processed and request access to it, enabling you to receive a copy and confirmation of processing methods/reasons.

● **Rectification:** Request correction of incomplete or inaccurate personal data.

● **Erasure:** Request erasure of your personal data in certain circumstances (the "right to be forgotten").

● **Objection:** Object to processing of your personal data (on grounds related to your situation) where we rely on a legitimate interest. We may continue processing if we have compelling legitimate grounds. You also have the right to object to processing for direct marketing.

● **Restriction:** Request restriction of processing in certain circumstances (e.g., if you want us to establish accuracy or reason for processing).

● **Portability:** In certain circumstances, request to receive personal data you provided in a structured, commonly used, and machine-readable format.

Please note that the right to be forgotten may not be available for the data we hold, given its collection purpose. If we relied on your consent for a particular purpose, you have the right to withdraw it.

To exercise these rights, please contact **(212) 542-4635** or **dataprotection@sabacapital.com**. You also have the right to lodge a complaint about data processing with the competent data protection supervisory authority. For Saba Capital Management (UK) Limited (an affiliate), complaints may be made to the Information Commissioner's Office in the UK. We ask that you contact us first to address any concerns.

Due to the international nature of our business, your personal data may be transferred to jurisdictions that do not offer equivalent protection to GDPR ("Third Countries"). In such cases, we will process data (or procure its processing) in Third Countries in accordance with GDPR requirements, potentially including contractual undertakings with service providers. Transfers to regulators or government agencies in Third Countries may also occur if necessary for administrative proceedings (e.g., requests for information, examinations, investigations) or for legitimate business purposes (e.g., compliance with foreign legal/regulatory obligations, establishing/defending legal claims).

**Revisions To Our Privacy Policies**

The Adviser evaluates its privacy policies and procedures for continuous improvement. The Adviser reserves the right to amend the terms contained herein in whole or in part for any reason. We therefore suggest that you review this Privacy Notice periodically, which is available at **<u>https://www.sabacapital.com/privacy-policy/</u>**.

**15,000,000 Shares**

**Saba Capital Income & Opportunities Fund**

**Common Shares of Beneficial Interest**

**Rights to Purchase Common Shares of Beneficial Interest**

**PROSPECTUS**

[●], 2025

THE INFORMATION IN THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT COMPLETE AND MAY BE CHANGED. WE MAY NOT SELL THESE SECURITIES UNTIL THE REGISTRATION STATEMENT FILED WITH THE SECURITIES AND EXCHANGE COMMISSION IS EFFECTIVE. THIS STATEMENT OF ADDITIONAL INFORMATION IS NOT AN OFFER TO SELL THESE SECURITIES AND IS NOT SOLICITING AN OFFER TO BUY THESE SECURITIES IN ANY JURISDICTION WHERE THE OFFER OR SALE IS NOT PERMITTED.

**Subject to Completion**

 **Dated [●], 2025**

![](sabab2a001.jpg)

**Saba Capital Income & Opportunities Fund**

**STATEMENT OF ADDITIONAL INFORMATION**

Saba Capital Income & Opportunities Fund (the "Fund") is a non-diversified, closed-end management investment company. This Statement of Additional Information ("SAI") relating to the Fund's common shares of beneficial interest ("common shares") does not constitute a prospectus, but should be read in conjunction with the prospectus relating thereto dated [●], 2025 and any related prospectus supplement. This SAI, which is not a prospectus, does not include all information that a prospective investor should consider before purchasing common shares, and investors should obtain and read the Prospectus and any related prospectus supplement prior to purchasing such shares. A copy of the Prospectus and any related prospectus supplement may be obtained without charge by calling +1 888.615.4310. You may also obtain a copy of the Prospectus on the Securities and Exchange Commission's (the "SEC") website (http://www.sec.gov). Capitalized terms used but not defined in this SAI have the meanings ascribed to them in the Prospectus.

References to the Investment Company Act of 1940, as amended (the "Investment Company Act"), or other applicable law, will include any rules promulgated thereunder and any guidance, interpretations or modifications by the SEC, SEC staff or other authority with appropriate jurisdiction, including court interpretations, and exemptive, no-action or other relief or permission from the SEC, SEC staff or other authority.

**This Statement of Additional Information is dated [●], 2025.**

**TABLE OF CONTENTS**

---

| | |
|:---|:---|
|  | **Page** |
| [THE FUND](#sabab2ab001) | S-3 |
| [INVESTMENT OBJECTIVES AND POLICIES](#sabab2ab002) | S-3 |
| [INVESTMENT POLICIES AND TECHNIQUES](#sabab2ab003) | S-5 |
| [ADDITIONAL RISK FACTORS](#sabab2ab004) | S-29 |
| [MANAGEMENT OF THE FUND](#sabab2ab005) | S-42 |
| [PORTFOLIO TRANSACTIONS AND BROKERAGE](#sabab2ab006) | S-53 |
| [PORTFOLIO TURNOVER RATE](#sabab2ab007) | S-55 |
| [CONFLICTS OF INTEREST](#sabab2ab008) | S-55 |
| [DESCRIPTION OF SHARES](#sabab2ab009) | S-59 |
| [REPURCHASE OF COMMON SHARES](#sabab2ab010) | S-59 |
| [TAX MATTERS](#sabab2ab011) | S-60 |
| [CUSTODIAN AND TRANSFER AGENT](#sabab2ab012) | S-69 |
| [INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM](#sabab2ab013) | S-69 |
| [CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES](#sabab2ab014) | S-70 |
| [INCORPORATION BY REFERENCE](#sabab2ab015) | S-70 |
| [FINANCIAL STATEMENTS](#sabab2ab016) | S-71 |
| [APPENDIX A: PROXY VOTING POLICY AND PROCEDURES](#sabab2ab017) | S-72 |

---

**THE FUND**

The Fund is a non-diversified, closed-end management investment company registered under the Investment Company Act. The Fund was formed as a Massachusetts business trust on December 2, 1987, pursuant to its Agreement and Declaration of Trust, as subsequently amended (the "Declaration of Trust") and is governed by the laws of the Commonwealth of Massachusetts. The Fund commenced operations on May 12, 1987. The Fund first changed its name from Pilgrim Prime Rate Trust to Pilgrim America Prime Rate Trust, effective April 12, 1996, and then changed its name back to Pilgrim Prime Rate Trust, effective November 16, 1998. Effective March 1, 2002, the Fund changed its name to ING Prime Rate Trust. Effective May 1, 2014, the Fund changed its name to Voya Prime Rate Trust. Effective June 4, 2021, and as a result of Saba Capital Management, L.P. (the "Adviser") assuming the role as investment adviser to the Fund, the Fund changed its name to Saba Capital Income & Opportunities Fund. The Fund's common shares are traded on the NYSE under the symbol "BRW."

**INVESTMENT OBJECTIVES AND POLICIES** 

The Fund's investment objective is set forth in the Prospectus. The investment objective is a non-fundamental policy that may be changed by the Board of Trustees (the "Board") without shareholder approval upon 60 days' prior written notice to shareholders.

**Investment Restrictions**

Unless otherwise noted, whenever an investment policy or limitation states a maximum percentage of the Fund's assets that may be invested in any security or other asset, or sets forth a policy regarding quality standards, such percentage limitation or standard will be determined immediately after and as a result of the Fund's acquisition of such security or other asset, except in the case of borrowing (or other activities that may be deemed to result in the issuance of a "senior security" under the Investment Company Act). Accordingly, any subsequent change in value, net assets or other circumstances will not be considered when determining whether the investment complies with the Fund's investment policies and limitations.

The Fund has adopted restrictions and policies relating to the investment of the Fund's assets and its activities. Certain of the restrictions are fundamental policies of the Fund and may not be changed without the approval of the holders of a majority of the Fund's outstanding voting securities (which for this purpose and under the Investment Company Act means the lesser of (i) 67% of the shares represented at a meeting at which more than 50% of the outstanding shares are represented or (ii) more than 50% of the outstanding shares).

*Fundamental Investment Restrictions. Under these fundamental investment restrictions, the Fund may not:*

&nbsp;&nbsp;&nbsp;&nbsp;1. issue senior securities,
 except insofar as the Fund may be deemed to have issued a senior security by reason of: (i) entering into certain interest
 rate hedging transactions; (ii) entering into reverse repurchase agreements; (iii) borrowing money in an amount permitted
 under the Investment Company Act, including the rules, regulations, interpretations thereunder, and any exemptive relief provided
 by the SEC; or (iv) issuing a class or classes of preferred shares in an amount not exceeding 50%, or such other percentage
 permitted by law, of the Fund's total assets less all liabilities and indebtedness not represented by senior securities;

&nbsp;&nbsp;&nbsp;&nbsp;2. invest more than
 25% of its total assets in any industry;

&nbsp;&nbsp;&nbsp;&nbsp;3. act
 as an underwriter of securities, except to the extent that it may be deemed to act as an underwriter in certain cases when
 disposing of its portfolio investments or acting as an agent or one of a group of co-agents in originating Senior Loans;

&nbsp;&nbsp;&nbsp;&nbsp;4. purchase
 or sell real estate, real estate mortgage loans, commodities, commodity futures contracts, or oil or gas exploration or development
 programs;

&nbsp;&nbsp;&nbsp;&nbsp;5. make
 loans of money or property to any person, except that the Fund: (i) may make loans to corporations or other business entities,
 or enter into leases or other arrangements that have the characteristics of a loan; (ii) may lend portfolio instruments; and
 (iii) may acquire securities subject to repurchase agreements; or

&nbsp;&nbsp;&nbsp;&nbsp;6. make
 investments on margin or hypothecate, mortgage, or pledge any of its assets except for the purpose of securing borrowings
 as described in connection with the issuance of senior securities and then only in an amount up to 33 ⅓% (50% in the
 case of the issuance of a preferred class of shares), or such other percentage permitted by law, of the value of the Fund's
 total assets (including, with respect to borrowings, the amount borrowed) less all liabilities other than borrowings (or,
 in the case of issuance of senior securities, less all liabilities and indebtedness not represented by senior securities).

For avoidance of doubt, restriction number 4 does not cover investments in exchange-traded funds or other pools/vehicles, that themselves invest in real estate, mortgage loans, commodities, futures, contracts or oil or gas exploration or development programs.

**INVESTMENT POLICIES AND TECHNIQUES**

The following information supplements the discussion of the Fund's investment objectives, policies and techniques that are described in the Prospectus. The Prospectus identifies the types of securities in which the Fund invests principally and summarizes the principal risks to the Fund's portfolio as a whole associated with such investments. To the extent that a type of security identified below is not described in the Prospectus (or as a sub-category of such security type in this SAI), the Fund generally invests such security type, if at all, as part of its non-principal investment strategies. The Fund may, but is not required to, invest in any or all of the types of securities described below to the extent not prohibited by its fundamental investment policies.

**Collateralized Bond Obligations**

Collateralized bond obligations ("CBOs") are investment grade bonds backed by a pool of bonds, which may include junk bonds, which are considered speculative investments. CBOs are often privately offered and sold, and thus not registered under the federal securities laws.

Underwriters of CBOs package a large and diversified pool of high-risk, high-yield junk bonds, which is then structured into "tranches." Typically, the first tranche represents a senior claim on collateral and pays the lowest interest rate; the second tranche is junior to the first tranche and therefore subject to greater risk and pays a higher rate; the third tranche is junior to both the first and second tranche, represents the lowest credit quality and instead of receiving a fixed interest rate receives the residual interest payments - money that is left over after the higher tranches have been paid. CBOs are substantially overcollateralized and this, plus diversification of the pool backing them, may earn certain of the tranches investment-grade bond ratings. Holders of third-tranche CBOs stand to earn higher or lower yields depending on the rate of defaults in the collateral pool.

**Commercial Paper**

Commercial paper is a short-term debt obligation, usually sold on a discount basis, with a maturity ranging from 2 to 270 days issued by banks, corporations and other borrowers. It is sold to investors with temporary idle cash as a way to increase returns on a short-term basis. These instruments are generally unsecured, which increases the credit risk associated with this type of investment.

**Corporate Debt Securities**

Corporate debt securities are long and short term fixed income securities typically issued by businesses to finance their operations. Corporate debt securities are issued by public or private companies, as distinct from debt securities issued by a government or its agencies. The issuer of a corporate debt security often has a contractual obligation to pay interest at a stated rate on specific dates and to repay principal periodically or on a specified maturity date. Corporate debt securities typically have four distinguishing features: (i) they are taxable; (ii) they have a par value of $1,000; (iii) they have a term maturity, which means they come due at a specified time period; and (iv) many are traded on major securities exchanges. Notes, bonds, debentures and commercial paper are the most common types of corporate debt securities, with the primary difference being their interest rates, maturity dates and secured or unsecured status. Commercial paper has the shortest term and usually is unsecured, as are debentures. The broad category of corporate debt securities includes debt issued by domestic or foreign companies of all kinds, including those with small-, mid- and large-capitalizations. The category also includes bank loans, as well as assignments, participations and other interests in bank loans. Corporate debt securities may be rated investment grade or below investment grade and may be structured as fixed-, variable or floating-rate obligations or as zero-coupon, pay-in-kind and step-coupon securities and may be privately placed or publicly offered. They may also be senior or subordinated obligations.

Extendible commercial notes ("ECNs") are very similar to commercial paper except that, with ECNs, the issuer has the option to extend the notes' maturity. ECNs are issued at a discount rate, with an initial redemption of not more than 90 days from the date of issue. If ECNs are not redeemed by the issuer on the initial redemption date, the issuer will pay a premium (step-up) rate based on the ECN's credit rating at the time.

Because of the wide range of types and maturities of corporate debt securities, as well as the range of creditworthiness of issuers, corporate debt securities can have widely varying risk/return profiles. For example, commercial paper issued by a large established domestic corporation that is rated by an NRSRO as investment grade may have a relatively modest return on principal but present relatively limited risk. On the other hand, a long-term corporate note issued, for example, by a small foreign corporation from an emerging market country that has not been rated by an NRSRO may have the potential for relatively large returns on principal but carries a relatively high degree of risk.

**Custody Receipts and Trust Certificates**

Custody receipts and trust certificates are derivative products that evidence direct ownership in a pool of securities. Typically, a sponsor will deposit a pool of securities with a custodian in exchange for custody receipts evidencing interests in those securities. The sponsor generally then will sell the custody receipts or trust certificates in negotiated transactions at varying prices. Each custody receipt or trust certificate evidences the individual securities in the pool and the holder of a custody receipt or trust certificate generally will have all the rights and privileges of owners of those securities.

**Debt Obligations**

Many different types of debt obligations exist (for example, bills, bonds, and notes). Issuers of debt obligations have a contractual obligation to pay interest at a fixed, variable or floating rate on specified dates and to repay principal by a specified maturity date. Certain debt obligations (usually intermediate and long-term bonds) have provisions that allow the issuer to redeem or "call" a bond before its maturity. Issuers are most likely to call these securities during periods of falling interest rates. When this happens, an investor may have to replace these securities with lower yielding securities, which could result in a lower return.

The market value of debt obligations is affected primarily by changes in prevailing interest rates, changes in the economic environment and the issuer's perceived ability to repay the debt. The market value of a debt obligation generally reacts inversely to interest rate changes. When prevailing interest rates decline, the market value of the bond usually rises, and when prevailing interest rates rise, the market value of the bond usually declines.

As noted, the values of debt obligations also may be affected by changes in the credit rating or financial condition of their issuers. Generally, the lower the quality rating of a security, the higher the degree of risk as to the payment of interest and return of principal. To compensate investors for taking on such increased risk, those issuers deemed to be less creditworthy generally must offer their investors higher interest rates than do issuers with better credit ratings.

**Dollar Rolls**

Dollar rolls involve selling securities (*e.g.*, or U.S. Treasury securities) and simultaneously entering into a commitment to purchase those or similar securities on a specified future date and price from the same party. A U.S. Treasury roll is a type of dollar roll. The Fund foregoes principal and interest paid on the securities during the "roll" period. The Fund is compensated by the difference between the current sales price and the lower forward price for the future purchase of the securities, as well as the interest earned on the cash proceeds of the initial sale. The investor also could be compensated through the receipt of fee income equivalent to a lower forward price. Dollar roll transactions may result in higher transaction costs for the Fund.

**Exchange-Traded Notes**

Exchange-traded notes ("ETNs") are instruments that combine aspects of bonds and exchange-traded funds (ETFs) and are designed to provide investors with access to the returns, less investor fees and expenses, of various market benchmarks or strategies to which they are usually linked. When an investor buys an ETN, the issuer, typically an underwriting bank, promises to pay upon maturity the amount reflected in the benchmark or strategy (minus fees and expenses). Some ETNs make periodic coupon payments. Like ETFs, ETNs are traded on an exchange, but ETNs have additional risks compared to ETFs, including the risk that if the credit of the ETN issuer becomes suspect, the investment might lose some or all of its value. Though linked to the performance, for example, of a market benchmark, ETNs are not equities or index funds, but they do share several characteristics. Similar to equities, ETNs are traded on an exchange and can be sold short. Similar to index funds, ETNs may be linked to the return of a benchmark or strategy, but ETNs do not have an ownership interest in the instruments underlying the benchmark or strategy the ETN is tracking.

**Foreign Currency Transactions**

*Spot Rates and Derivative Instruments*. The Fund may conduct its foreign currency exchange transactions either at the spot (cash) rate prevailing in the foreign currency exchange market or by entering into forward foreign currency exchange contracts (forward contracts). These contracts are traded in the interbank market conducted directly between currency traders (usually large commercial banks) and their customers. Because foreign currency transactions occurring in the interbank market might involve substantially larger amounts than those involved in the use of such derivative instruments, the Fund could be disadvantaged by having to deal in the odd lot market for the underlying foreign currencies at prices that are less favorable than for round lots. The Fund may enter into forward contracts for a variety of reasons, including for risk management (hedging) or for investment purposes.

When the Fund enters into a contract for the purchase or sale of a security denominated in a foreign currency or has been notified of a dividend or interest payment, it may desire to lock in the price of the security or the amount of the payment, usually in U.S. dollars, although it could desire to lock in the price of the security in another currency. By entering into a forward contract, the Fund would be able to protect itself against a possible loss resulting from an adverse change in the relationship between different currencies from the date the security is purchased or sold to the date on which payment is made or received or when the dividend or interest is actually received.

The Fund may enter into forward contracts when management of the Fund believes the currency of a particular foreign country may decline in value relative to another currency. When selling currencies forward in this fashion, the Fund may seek to hedge the value of foreign securities it holds against an adverse move in exchange rates. The precise matching of forward contract amounts and the value of securities involved generally will not be possible since the future value of securities in foreign currencies more than likely will change between the date the forward contract is entered into and the date it matures. The projection of short-term currency market movements is extremely difficult and successful execution of a short-term hedging strategy is highly uncertain.

This method of protecting the value of the Fund's securities against a decline in the value of a currency does not eliminate fluctuations in the underlying prices of the securities. It simply establishes a rate of exchange that can be achieved at some point in time. Although forward contracts can be used to minimize the risk of loss due to a decline in value of hedged currency, they will also limit any potential gain that might result should the value of such currency increase.

The Fund may also enter into forward contracts when the Fund's portfolio manager believes the currency of a particular country will increase in value relative to another currency. The Fund may buy currencies forward to gain exposure to a currency without incurring the additional costs of purchasing securities denominated in that currency.

For example, the combination of U.S. dollar-denominated instruments with long forward currency exchange contracts creates a position economically equivalent to a position in the foreign currency, in anticipation of an increase in the value of the foreign currency against the U.S. dollar. Conversely, the combination of U.S. dollar-denominated instruments with short forward currency exchange contracts is economically equivalent to borrowing the foreign currency for delivery at a specified date in the future, in anticipation of a decrease in the value of the foreign currency against the U.S. dollar.

Unanticipated changes in the currency exchange results could result in poorer performance for Funds that enter into these types of transactions.

At maturity of a forward contract, the Fund may either deliver (if a contract to sell) or take delivery of (if a contract to buy) the foreign currency or terminate its contractual obligation by entering into an offsetting contract with the same currency trader, having the same maturity date, and covering the same amount of foreign currency.

If the Fund engages in an offsetting transaction, it will incur a gain or loss to the extent there has been movement in forward contract prices. If the Fund engages in an offsetting transaction, it may subsequently enter into a new forward contract to buy or sell the foreign currency.

Although the Fund values its assets each business day in terms of U.S. dollars, it may not intend to convert its foreign currencies into U.S. dollars on a daily basis. However, it will do so from time to time, and such conversions involve certain currency conversion costs. Although foreign exchange dealers do not charge a fee for conversion, they do realize a profit based on the difference (spread) between the prices at which they buy and sell various currencies. Thus, a dealer may offer to sell a foreign currency to the Fund at one rate, while offering a lesser rate of exchange should the Fund desire to resell that currency to the dealer.

It is possible, under certain circumstances, including entering into forward currency contracts for investment purposes, that the Fund will be required to limit or restructure its forward contract currency transactions to qualify as a "regulated investment company" under the Code.

*Options on Foreign Currencies*. The Fund may buy put and call options and write covered call and cash-secured put options on foreign currencies for hedging purposes and to gain exposure to foreign currencies. For example, a decline in the dollar value of a foreign currency in which securities are denominated will reduce the dollar value of such securities, even if their value in the foreign currency remains constant. In order to protect against the diminutions in the value of securities, the Fund may buy put options on the foreign currency. If the value of the currency does decline, the Fund would have the right to sell the currency for a fixed amount in dollars and would thereby offset, in whole or in part, the adverse effect on its portfolio that otherwise would have resulted.

Conversely, where a change in the dollar value of a currency would increase the cost of securities the Fund plans to buy, or where the Fund would benefit from increased exposure to the currency, the Fund may buy call options on the foreign currency, giving it the right to purchase the currency for a fixed amount in dollars. The purchase of the options could offset, at least partially, the changes in exchange rates.

As in the case of other types of options, however, the benefit to the Fund derived from purchases of foreign currency options would be reduced by the amount of the premium and related transaction costs. In addition, where currency exchange rates do not move in the direction or to the extent anticipated, the Fund could sustain losses on transactions in foreign currency options that would require it to forego a portion or all of the benefits of advantageous changes in rates.

The Fund may write options on foreign currencies for similar purposes. For example, when the Fund anticipates a decline in the dollar value of foreign-denominated securities due to adverse fluctuations in exchange rates, it could, instead of purchasing a put option, write a call option on the relevant currency, giving the option holder the right to purchase that currency from the Fund for a fixed amount in dollars. If the expected decline occurs, the option would most likely not be exercised and the diminution in value of securities would be offset, at least partially, by the amount of the premium received.

Similarly, instead of purchasing a call option when a foreign currency is expected to appreciate, the Fund could write a put option on the relevant currency, giving the option holder the right to that currency from the Fund for a fixed amount in dollars. If rates move in the manner projected, the put option would expire unexercised and allow the Fund to hedge increased cost up to the amount of the premium.

As in the case of other types of options, however, the writing of a foreign currency option will constitute only a partial hedge up to the amount of the premium, and only if rates move in the expected direction. If this does not occur, the option may be exercised and the Fund would be required to buy or sell the underlying currency at a loss that may not be offset by the amount of the premium. Through the writing of options on foreign currencies, the Fund also may be required to forego all or a portion of the benefits that might otherwise have been obtained from favorable movements on exchange rates.

An option written on foreign currencies is covered if the Fund holds currency sufficient to cover the option or has an absolute and immediate right to acquire that currency without additional cash consideration upon conversion of assets denominated in that currency or exchange of other currency held in its portfolio. An option writer could lose amounts substantially in excess of its initial investments, due to the margin and collateral requirements associated with such positions.

Options on foreign currencies are traded through financial institutions acting as market-makers, although foreign currency options also are traded on certain national securities exchanges, such as the Philadelphia Stock Exchange and the Chicago Board Options Exchange, subject to SEC regulation. In an over-the-counter trading environment, many of the protections afforded to exchange participants will not be available. For example, there are no daily price fluctuation limits, and adverse market movements could therefore continue to an unlimited extent over a period of time. Although the purchaser of an option cannot lose more than the amount of the premium plus related transaction costs, this entire amount could be lost.

Foreign currency option positions entered into on a national securities exchange are cleared and guaranteed by the OCC, thereby reducing the risk of counterparty default. Further, a liquid secondary market in options traded on a national securities exchange may be more readily available than in the over-the-counter market, potentially permitting the Fund to liquidate open positions at a profit prior to exercise or expiration, or to limit losses in the event of adverse market movements.

*Foreign Currency Futures and Related Options*. The Fund may enter into currency futures contracts to buy or sell currencies. It also may buy put and call options and write covered call and cash-secured put options on currency futures. Currency futures contracts are similar to currency forward contracts, except that they are traded on exchanges (and have margin requirements) and are standardized as to contract size and delivery date. Most currency futures call for payment of delivery in U.S. dollars. The Fund may use currency futures for the same purposes as currency forward contracts, subject to CFTC limitations.

Currency futures and options on futures values can be expected to correlate with exchange rates, but will not reflect other factors that may affect the value of the Fund's investments. A currency hedge, for example, should protect a Yen-denominated bond against a decline in the Yen, but will not protect the Fund against price decline if the issuer's creditworthiness deteriorates.

Because the value of the Fund's investments denominated in foreign currency will change in response to many factors other than exchange rates, it may not be possible to match the amount of a forward contract to the value of the Fund's investments denominated in that currency over time.

**Guaranteed Investment Contracts (Funding Agreements)**

Guaranteed investment contracts, or funding agreements, are short-term, privately placed debt instruments issued by insurance companies. Pursuant to such contracts, the Fund may make cash contributions to a deposit fund of the insurance company's general account. The insurance company then credits to the Fund payments at negotiated, floating or fixed interest rates. The Fund will purchase guaranteed investment contracts only from issuers that, at the time of purchase, meet certain credit and quality standards. In general, guaranteed investment contracts are not assignable or transferable without the permission of the issuing insurance companies, and an active secondary market does not exist for these investments. In addition, the issuer may not be able to pay the principal amount to the Fund on seven days' notice or less, at which time the investment may be considered illiquid.

**High-Yield Securities** 

High-yield, or low and below investment grade securities (below investment grade securities are also known as "junk bonds") are debt securities with the lowest investment grade rating (e.g., BBB by S&P and Fitch or Baa by Moody's), that are below investment grade (e.g., lower than BBB by S&P and Fitch or Baa by Moody's) or that are unrated but determined by the Fund's portfolio managers to be of comparable quality. These types of securities may be issued to fund corporate transactions or restructurings, such as leveraged buyouts, mergers, acquisitions, debt reclassifications or similar events. High-yield securities may be more speculative in nature than securities with higher ratings and tend to be more sensitive to credit risk, particularly during a downturn in the economy. These types of securities may be issued by unseasoned companies without long track records of sales and earnings, or by companies or municipalities that have questionable credit strength. High-yield securities and comparable unrated securities: (i) likely will have some quality and protective characteristics that, in the judgment of one or more Nationally Recognized Statistical Rating Organizations, are outweighed by large uncertainties or major risk exposures to adverse conditions; (ii) are speculative with respect to the issuer's capacity to pay interest and repay principal in accordance with the terms of the obligation; and (iii) may have a less liquid secondary market, potentially making it difficult to value or sell such securities. Credit ratings issued by credit rating agencies are designed to evaluate the safety of principal and interest payments of rated securities. They do not, however, evaluate the market value risk of lower-quality securities and, therefore, may not fully reflect the true risks of an investment. In addition, credit rating agencies may or may not make timely changes in a rating to reflect changes in the economy or in the condition of the issuer that affect the market value of the securities. Consequently, credit ratings are used only as a preliminary indicator of investment quality. High-yield securities may be structured as fixed-, variable- or floating-rate obligations or as zero- coupon, pay-in-kind and step-coupon securities and may be privately placed or publicly offered.

The rates of return on these types of securities generally are higher than the rates of return available on more highly rated securities, but generally involve greater volatility of price and risk of loss of principal and income, including the possibility of default by or insolvency of the issuers of such securities. Accordingly, the Fund may be more dependent on the Adviser's credit analysis with respect to these types of securities than is the case for more highly rated securities.

The market values of certain high-yield securities and comparable unrated securities tend to be more sensitive to individual corporate developments and changes in economic conditions than are the market values of more highly rated securities. In addition, issuers of high-yield and comparable unrated securities often are highly leveraged and may not have more traditional methods of financing available to them, so that their ability to service their debt obligations during an economic downturn or during sustained periods of rising interest rates may be impaired.

The risk of loss due to default is greater for high-yield and comparable unrated securities than it is for higher rated securities because high-yield securities and comparable unrated securities generally are unsecured and frequently are subordinated to more senior indebtedness. The Fund may incur additional expenses to the extent that it is required to seek recovery upon a default in the payment of principal or interest on its holdings of such securities. The existence of limited markets for lower-rated debt securities may diminish the Fund's ability to: (i) obtain accurate market quotations for purposes of valuing such securities and calculating portfolio net asset value; and (ii) sell the securities at fair market value either to meet redemption requests or to respond to changes in the economy or in financial markets.

Many lower-rated securities are not registered for offer and sale to the public under the Securities Act. Investments in these restricted securities may be determined to be liquid (able to be sold or disposed of in current market conditions in seven days or less without the sales or dispositions significantly changing the market value of the investment). The Fund is not otherwise subject to any limitation on its ability to invest in restricted securities. Restricted securities may be less liquid than other lower-rated securities, potentially making it difficult to value or sell such securities.

**Inflation-Protected Securities** 

Inflation is a general rise in prices of goods and services. Inflation erodes the purchasing power of an investor's assets. For example, if an investment provides a total return of 7% in a given year and inflation is 3% during that period, the inflation- adjusted, or real, return is 4%. Inflation-protected securities are debt securities whose principal and/or interest payments are adjusted for inflation, unlike debt securities that make fixed principal and interest payments. One type of inflation-protected debt security is issued by the U.S. Treasury. The principal of these securities is adjusted for inflation as indicated by the Consumer Price Index ("CPI") for urban consumers and interest is paid on the adjusted amount. The CPI is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy.

If the CPI falls, the principal value of inflation-protected securities will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. Conversely, if the CPI rises, the principal value of inflation-protected securities will be adjusted upward, and consequently the interest payable on these securities will be increased. Repayment of the original bond principal upon maturity is guaranteed in the case of U.S. Treasury inflation-protected securities, even during a period of deflation. However, the current market value of the inflation-protected securities is not guaranteed and will fluctuate. Other inflation-indexed securities include inflation-related bonds, which may or may not provide a similar guarantee. If a guarantee of principal is not provided, the adjusted principal value of the bond repaid at maturity may be less than the original principal.

Other issuers of inflation-protected debt securities include other U.S. government agencies or instrumentalities, corporations and foreign governments. There can be no assurance that the CPI or any foreign inflation index will accurately measure the real rate of inflation in the prices of goods and services. Moreover, there can be no assurance that the rate of inflation in a foreign country will be correlated to the rate of inflation in the United States. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond's inflation measure.

Any increase in principal for an inflation-protected security resulting from inflation adjustments is considered by IRS regulations to be taxable income in the year it occurs. For direct holders of an inflation-protected security, this means that taxes must be paid on principal adjustments even though these amounts are not received until the bond matures. Similarly, a Fund treated as a regulated investment company under the Code that holds these securities distributes both interest income and the income attributable to principal adjustments in the form of cash or reinvested shares, which are taxable to shareholders.

**Money Market Instruments**

Money market instruments include cash equivalents and short-term debt obligations which include: (i) bank obligations, including certificates of deposit (CDs), time deposits and bankers' acceptances, and letters of credit of banks or savings and loan associations having capital surplus and undivided profits (as of the date of its most recently published annual financial statements) in excess of $100 million (or the equivalent in the instance of a foreign branch of a U.S. bank) at the date of investment; (ii) funding agreements; (iii) repurchase agreements; (iv) obligations of the United States, foreign countries and supranational entities, and each of their subdivisions, agencies and instrumentalities; (v) certain corporate debt securities, such as commercial paper, short-term corporate obligations and extendible commercial notes; (vi) participation interests; and (vii) municipal securities. Money market instruments may be structured as fixed-, variable- or floating-rate obligations and may be privately placed or publicly offered. With respect to money market securities, certain U.S. Government obligations are backed or insured by the U.S. Government, its agencies or its instrumentalities. Other money market securities are backed only by the claims paying ability or creditworthiness of the issuer. Bankers' acceptances are marketable short-term credit instruments used to finance the import, export, transfer or storage of goods. They are termed "accepted" when a bank unconditionally guarantees their payment at maturity.

**Mortgage Related Derivative Instruments**

The Fund may invest in mortgage-backed securities ("MBS") credit default swaps. MBS credit default swaps include swaps the reference obligation for which is an MBS or related index, such as the CMBX Index (a tradeable index referencing a basket of CMBS), the TRX Index (a tradeable index referencing total return swaps based on CMBS) or the ABX Index (a tradeable index referencing a basket of sub-prime MBS). The Fund may engage in other derivative transactions related to MBS, including purchasing and selling exchange-listed and over-the-counter put and call options, futures and forwards on mortgages and MBS. The Fund may invest in newly developed mortgage related derivatives that may hereafter become available.

**Municipal Securities** 

*Standby Commitments*. Standby commitments are securities under which a purchaser, usually a bank or broker-dealer, agrees to purchase, for a fee, an amount of the Fund's municipal obligations. The amount payable by a bank or broker-dealer to purchase securities subject to a standby commitment typically will be substantially the same as the value of the underlying municipal securities. The Fund may pay for standby commitments either separately in cash or by paying a higher price for portfolio securities that are acquired subject to such a commitment.

*Taxable Municipal Obligations*. Interest or other investment return is subject to federal income tax for certain types of municipal obligations for a variety of reasons. These municipal obligations do not qualify for the federal income tax exemption because (a) they did not receive necessary authorization for tax-exempt treatment from state or local government authorities, (b) they exceed certain regulatory limitations on the cost of issuance for tax-exempt financing or (c) they finance public or private activities that do not qualify for the federal income tax exemption. These non-qualifying activities might include, for example, certain types of multi-family housing, certain professional and local sports facilities, refinancing of certain municipal debt, and borrowing to replenish a municipality's underfunded pension plan.

**Participation Interests**

Participation interests (also called pass-through certificates or securities) represent an interest in a pool of debt obligations, such as municipal bonds or notes that have been "packaged" by an intermediary, such as a bank or broker-dealer. Participation interests typically are issued by partnerships or trusts through which the Fund receives principal and interest payments that are passed through to the holder of the participation interest from the payments made on the underlying debt obligations. The purchaser of a participation interest receives an undivided interest in the underlying debt obligations. The issuers of the underlying debt obligations make interest and principal payments to the intermediary, as an initial purchaser, which are passed through to purchasers in the secondary market, such as the Fund. Participation interests may be structured as fixed-, variable- or floating-rate obligations or as zero-coupon, pay-in- kind and step-coupon securities and may be privately placed or publicly offered. Loan participations also are a type of participation interest. Loans, loan participations, and interests in securitized loan pools are interests in amounts owed by a corporate, governmental, or other borrower to a lender or consortium of lenders (typically banks, insurance companies, investment banks, government agencies, or international agencies).

**Partnership Securities**

The Fund may invest in securities issued by publicly traded partnerships or master limited partnerships or limited liability companies (together referred to as PTPs/MLPs). These entities are limited partnerships or limited liability companies that may be publicly traded on stock exchanges or markets such as the NYSE, the NYSE Alternext US LLC (formerly the American Stock Exchange) and NASDAQ. PTPs/MLPs often own businesses or properties relating to energy, natural resources or real estate, or may be involved in the film industry or research and development activities. Generally, PTPs/MLPs are operated under the supervision of one or more managing partners or members. Limited partners, unit holders, or members (such as a fund that invests in a partnership) are not involved in the day-to-day management of the company. Limited partners, unit holders, or members are allocated income and capital gains associated with the partnership project in accordance with the terms of the partnership or limited liability company agreement.

At times PTPs/MLPs may potentially offer relatively high yields compared to common stocks. Because PTPs/MLPs are generally treated as partnerships or similar limited liability "pass-through" entities for tax purposes, they do not ordinarily pay income taxes, but pass their earnings on to unit holders (except in the case of some publicly traded firms that may be taxed as corporations). For tax purposes, unit holders may initially be deemed to receive only a portion of the distributions attributed to them because certain other portions may be attributed to the repayment of initial investments and may thereby lower the cost basis of the units or shares owned by unit holders. As a result, unit holders may effectively defer taxation on the receipt of some distributions until they sell their units. These tax consequences may differ for different types of entities.

**Private Investments in Public Equity**

Private Investments in public equity (or PIPEs) are equity securities purchased in a private placement that are issued by issuers who have outstanding, publicly traded equity securities of the same class. Shares issued in PIPEs are not registered with the SEC and may not be sold unless registered with the SEC or pursuant to an exemption from registration. Generally, an issuer of shares in a PIPE may agree to register the shares after a certain period from the date of the private sale. This restricted period can last many months. Until the public registration process is completed, the resale of the PIPE shares is restricted and the Fund may sell the shares after six months, with certain restrictions, if the Fund is not an affiliate of the issuer (under relevant securities law, a holder of restricted shares may sell the shares after 6 months if the holder is not affiliated to the issuer). Generally, such restrictions cause the PIPE shares to be illiquid during this time. If the issuer does not agree to register the PIPE shares, the shares will remain restricted, not be freely tradable and may only be sold pursuant to an exemption from registration. Even if the PIPE shares are registered for resale, there is no assurance that the registration will be in effect at the time the Fund elects to sell the shares.

**Real Estate Investment Trusts ("REITs")**

The Fund may invest in equity interests and debt securities issued by REITs. REITs possess certain risks which differ from an investment in common stocks. REITs are financial vehicles that pool investor's capital to purchase or finance real estate. REITs may concentrate their investments in specific geographic areas or in specific property types (i.e., hotels, shopping malls, residential complexes and office buildings). The market value of REIT shares and the ability of REITs to distribute income may be adversely affected by several factors, including rising interest rates, changes in the national, state and local economic climate and real estate conditions, perceptions of prospective tenants of the safety, convenience and attractiveness of the properties, the ability of the owners to provide adequate management, maintenance and insurance, the cost of complying with the Americans with Disabilities Act, increased competition from new properties, the impact of present or future environmental legislation and compliance with environmental laws, changes in real estate taxes and other operating expenses, adverse changes in governmental rules and fiscal policies, adverse changes in zoning laws and other factors beyond the control of the REIT issuers. In addition, distributions received by the Fund from REITs may consist of dividends, capital gains and/or return of capital. As REITs generally pay a higher rate of dividends (on a pre-tax basis) than operating companies, to the extent application of the Fund's investment strategy results in the Fund investing in REIT shares, the percentage of the Fund's dividend income received from REIT shares will likely exceed the percentage of the Fund's portfolio which is comprised of REIT shares. There are three general categories of REITs: equity REITs, mortgage REITs and hybrid REITs. Equity REITs invest primarily in direct fee ownership or leasehold ownership of real property; they derive most of their income from rents. Mortgage REITs invest mostly in mortgages on real estate, which may secure construction, development or long-term loans, and the main source of their income is mortgage interest payments. Hybrid REITs hold both ownership and mortgage interests in real estate.

**Repurchase Agreements**

Repurchase agreements are agreements under which the Fund acquires a security for a relatively short period of time (usually within seven days) subject to the obligation of a seller to repurchase and the Fund to resell such security at a fixed time and price (representing the Fund's cost plus interest). The repurchase agreement specifies the yield during the purchaser's holding period. Repurchase agreements also may be viewed as loans made by the Fund that are collateralized by the securities subject to repurchase, which may consist of a variety of security types. The Fund typically will enter into repurchase agreements only with commercial banks, registered broker-dealers and the Fixed Income Clearing Corporation. Such transactions are monitored to ensure that the value of the underlying securities will be at least equal at all times to the total amount of the repurchase obligation, including any accrued interest.

**Reverse Repurchase Agreements**

Reverse repurchase agreements are agreements under which the Fund temporarily transfers possession of a portfolio instrument to another party, such as a bank or broker-dealer, in return for cash. At the same time, the Fund agrees to repurchase the instrument at an agreed-upon time (normally within 7 days) and price which reflects an interest payment. The Fund generally retains the right to interest and principal payments on the security. Reverse repurchase agreements also may be viewed as borrowings made by the Fund.

**Stripped Securities**

Stripped securities are the separate income or principal payments of a debt security and evidence ownership in either the future interest or principal payments on an instrument. There are many different types and variations of stripped securities. For example, separate trading of registered interest and principal securities ("STRIPS") can be component parts of a U.S. Treasury security where the principal and interest components are traded independently through DTC, a clearing agency registered pursuant to Section 17A of the Exchange Act and created to hold securities for its participants, and to facilitate the clearance and settlement of securities transactions between participants through electronic computerized book-entries, thereby eliminating the need for physical movement of certificates. Treasury Investor Growth Receipts ("TIGERs") are U.S. Treasury securities stripped by brokers.

**Structured Investments (Index or Linked Securities)**

Indexed or linked securities, also often referred to as "structured products," are instruments that may have varying combinations of equity and debt characteristics. These instruments are structured to recast the investment characteristics of the underlying security or reference asset. If the issuer is a unit investment trust or other special purpose vehicle, the structuring will typically involve the deposit with or purchase by such issuer of specified instruments (such as commercial bank loans or securities) and/or the execution of various derivative transactions, and the issuance by that entity of one or more classes of securities (structured securities) backed by, or representing interests in, the underlying instruments. The cash flow on the underlying instruments may be apportioned among the newly issued structured securities to create securities with different investment characteristics, such as varying maturities, payment priorities and interest rate provisions, and the extent of such payments made with respect to structured securities is dependent on the extent of the cash flow on the underlying instruments.

 

*Indexed and Inverse Floating Rate Securities*. The Fund may invest in securities that provide a potential return based on a particular index or interest rates. For example, the Fund may invest in debt securities that pay interest based on an index of interest rates. The principal amount payable upon maturity of certain securities also may be based on the value of the index. To the extent the Fund invests in these types of securities, the Fund's return on such securities will rise and fall with the value of the particular index: that is, if the value of the index falls, the value of the indexed securities owned by the Fund will fall. Interest and principal payable on certain securities may also be based on relative changes among particular indices.

The Fund may also invest in so-called "inverse floaters" or "residual interest bonds" on which the interest rates vary inversely with a floating rate (which may be reset periodically by a Dutch auction, a remarketing agent, or by reference to a short-term tax-exempt interest rate index). The Fund may purchase synthetically-created inverse floating rate bonds evidenced by custodial or trust receipts. A trust funds the purchase of a bond by issuing two classes of certificates: short-term floating rate notes (typically sold to third parties) and the inverse floaters (also known as residual certificates). No additional income beyond that provided by the trust's underlying bond is created; rather, that income is merely divided-up between the two classes of certificates. Generally, income on inverse floating rate bonds will decrease when interest rates increase, and will increase when interest rates decrease. Such securities can have the effect of providing a degree of investment leverage, since they may increase or decrease in value in response to changes in market interest rates at a rate that is a multiple of the actual rate at which fixed rate securities increase or decrease in response to such changes. As a result, the market values of such securities will generally be more volatile than the market values of fixed-rate securities. To seek to limit the volatility of these securities, the Fund may purchase inverse floating obligations that have shorter-term maturities or that contain limitations on the extent to which the interest rate may vary. Certain investments in such obligations may be illiquid. Furthermore, where such a security includes a contingent liability, in the event of an adverse movement in the underlying index or interest rate, the Fund may be required to pay substantial additional margin to maintain the position.

*Credit-Linked Securities.* Among the income-producing securities in which the Fund may invest are credit-linked securities. The issuers of these securities frequently are limited purpose trusts or other special purpose vehicles that, in turn, invest in a derivative instrument or basket of derivative instruments, such as credit default swaps, interest rate swaps and other securities, in order to provide exposure to certain fixed income markets. For instance, the Fund may invest in credit-linked securities as a cash management tool in order to gain exposure to a certain market and/or to remain fully invested when more traditional income producing securities are not available. Like an investment in a bond, investments in these credit-linked securities represent the right to receive periodic income payments (in the form of distributions) and payment of principal at the end of the term of the security. However, these payments are conditioned on or linked to the issuer's receipt of payments from, and the issuer's potential obligations to, the counterparties to the derivative instruments and other securities in which the issuer invests. For instance, the issuer may sell one or more credit default swaps, under which the issuer would receive a stream of payments over the term of the swap agreements provided that no event of default has occurred with respect to the referenced debt obligation upon which the swap is based. If a default occurs, the stream of payments may stop and the issuer would be obligated to pay the counterparty the par (or other agreed upon value) of the referenced debt obligation. This, in turn, would reduce the amount of income and/or principal that the Fund would receive. The Fund's investments in these securities are indirectly subject to the risks associated with derivative instruments. These securities generally are exempt from registration under the Securities Act of 1933, as amended (the "Securities Act"). Accordingly, there may be no established trading market for the securities and they may be illiquid.

 

*Equity-Linked Notes*. An equity-linked note ("ELN") is a debt instrument whose value is based on the value of a single equity security, basket of equity securities or an index of equity securities (each, an "Underlying Equity"). An ELN typically provides interest income, thereby offering a yield advantage over investing directly in an Underlying Equity. The Fund may purchase ELNs that trade on a securities exchange or those that trade on the over-the-counter markets, including Rule 144A securities. The Fund may also purchase ELNs in a privately negotiated transaction with the issuer of the ELNs (or its broker-dealer affiliate). The Fund may or may not hold an ELN until its maturity.

Equity-linked securities also include issues such as Structured Yield Product Exchangeable for Stock ("STRYPES"), Trust Automatic Common Exchange Securities ("TRACES"), Trust Issued Mandatory Exchange Securities ("TIMES") and Trust Enhanced Dividend Securities ("TRENDS"). The issuers of these equity-linked securities generally purchase and hold a portfolio of stripped U.S. Treasury securities maturing on a quarterly basis through the conversion date, and a forward purchase contract with an existing shareholder of the company relating to the common stock. Quarterly distributions on such equity-linked securities generally consist of the cash received from the U.S. Treasury securities and such equity-linked securities generally are not entitled to any dividends that may be declared on the common stock.

ELNs also include participation notes issued by a bank or broker-dealer that entitles the Fund to a return measured by the change in value of an Underlying Equity. Participation notes are typically used when a direct investment in the Underlying Equity is restricted due to country-specific regulations. Investment in a participation note is not the same as investment in the constituent shares of the company (or other issuer type) to which the Underlying Equity is economically tied. A participation note represents only an obligation of the company or other issuer type to provide the Fund the economic performance equivalent to holding shares of the Underlying Equity. A participation note does not provide any beneficial or equitable entitlement or interest in the relevant Underlying Equity. In other words, shares of the Underlying Equity are not in any way owned by the Fund.

*Currency-Linked Securities*. Currency-linked debt securities are short-term or intermediate-term instruments having a value at maturity, and/or an interest rate, determined by reference to one or more foreign currencies. Payment of principal or periodic interest may be calculated as a multiple of the movement of one currency against another currency, or against an index.

Currency-linked securities may entail substantial risks. Such instruments may be subject to significant price volatility. The company issuing the instrument may fail to pay the amount due on maturity. The underlying investment may not perform as expected by the Fund's portfolio manager. Markets and underlying investments and indexes may move in a direction that was not anticipated by the Fund's portfolio manager. Performance of the derivatives may be influenced by interest rate and other market changes in the United States and abroad, and certain derivative instruments may be illiquid.

Linked securities are often issued by unit investment trusts. Examples of this include such index-linked securities as S&P Depositary Receipts ("SPDRs"), which is an interest in a unit investment trust holding a portfolio of securities linked to the S&P 500® Index, and a type of exchange-traded fund. SPDRs generally closely track the underlying portfolio of securities, trade like a share of common stock and pay periodic dividends proportionate to those paid by the portfolio of stocks that comprise the S&P 500® Index. As a holder of interests in a unit investment trust, the Fund would indirectly bear its ratable share of that unit investment trust's expenses. At the same time, the Fund would continue to pay its own management and advisory fees and other expenses, as a result of which the Fund and its shareholders in effect would be absorbing levels of fees with respect to investments in such unit investment trusts.

Because linked securities typically involve no credit enhancement, their credit risk generally will be equivalent to that of the underlying instruments. Investments in structured products may be structured as a class that is either subordinated or unsubordinated to the right of payment of another class. Subordinated linked securities typically have higher rates of return and present greater risks than unsubordinated structured products. Structured products sometimes are sold in private placement transactions and often have a limited trading market.

Investments in linked securities have the potential to lead to significant losses because of unexpected movements in the underlying financial asset, index, currency or other investment. The ability of the Fund to utilize linked securities successfully will depend on its ability correctly to predict pertinent market movements, which cannot be assured. Because currency-linked securities usually relate to foreign currencies, some of which may be currencies from emerging market countries, there are certain additional risks associated with such investments.

*Interest Rate Futures Contracts*. Bond prices are established in both the cash market and the futures market. In the cash market, bonds are purchased and sold with payment for the full purchase price of the bond being made in cash, generally within five business days after the trade. In the futures market, a contract is made to purchase or sell a bond in the future for a set price on a certain date. Historically, the prices for bonds established in the futures markets have tended to move generally in the aggregate in concert with the cash market prices and have maintained fairly predictable relationships. Accordingly, the Fund may use interest rate futures contracts as a defense, or hedge, against anticipated interest rate changes. The Fund presently could accomplish a similar result to that which it hopes to achieve through the use of interest rate futures contracts by selling bonds with long maturities and investing in bonds with short maturities when interest rates are expected to increase, or conversely, selling bonds with short maturities and investing in bonds with long maturities when interest rates are expected to decline. However, because of the liquidity that is often available in the futures market, the protection is more likely to be achieved, perhaps at a lower cost and without changing the rate of interest being earned by the Fund, through using futures contracts.

Interest rate futures contracts are exchange-traded in an auction environment. Each exchange guarantees performance under contract provisions through a clearing corporation, a nonprofit organization managed by the exchange membership. A public market exists in futures contracts covering various financial instruments including long-term U.S. Treasury Bonds and Notes; three-month U.S. Treasury Bills; and ninety-day commercial paper. The Fund may also invest in exchange-traded Eurodollar contracts, which are interest rate futures on the forward level of a reference rate. These contracts are generally considered liquid securities and trade on the Chicago Mercantile Exchange. Such Eurodollar contracts are generally used to "lock-in" or hedge the future level of short-term rates. The Fund may trade in any interest rate futures contracts for which there exists a public market, including, without limitation, the foregoing instruments.

*Index Futures Contracts*. An index futures contract is a contract to buy or sell units of an index at a specified future date at a price agreed upon when the contract is made. Entering into a contract to buy units of an index is commonly referred to as buying or purchasing a contract or holding a long position in the index. Entering into a contract to sell units of an index is commonly referred to as selling a contract or holding a short position in the index. A unit is the current value of the index. The Fund may enter into stock index futures contracts, debt index futures contracts, or other index futures contracts appropriate to its objective(s).

*Municipal Bond Index Futures Contracts*. Municipal bond index futures contracts may act as a hedge against changes in market conditions. A municipal bond index assigns values daily to the municipal bonds included in the index based on the independent assessment of dealer-to-dealer municipal bond brokers. A municipal bond index futures contract represents a firm commitment by which two parties agree to take or make delivery of an amount equal to a specified dollar amount multiplied by the difference between the municipal bond index value on the last trading date of the contract and the price at which the futures contract is originally struck. No physical delivery of the underlying securities in the index is made.

*Options on Futures Contracts*. The Fund may purchase and write call and put options on those futures contracts that it is permitted to buy or sell. The Fund may use such options on futures contracts in lieu of writing options directly on the underlying securities or other assets or purchasing and selling the underlying futures contracts. Such options generally operate in the same manner as options purchased or written directly on the underlying investments. A futures option gives the holder, in return for the premium paid, the right, but not the obligation, to buy from (call) or sell to (put) the writer of the option a futures contract at a specified price at any time during the period of the option. Upon exercise, the writer of the option is obligated to pay the difference between the cash value of the futures contract and the exercise price. Like the buyer or seller of a futures contract, the holder or writer of an option has the right to terminate its position prior to the scheduled expiration of the option by selling or purchasing an option of the same series, at which time the person entering into the closing purchase transaction will realize a gain or loss. There is no guarantee that such closing purchase transactions can be effected. The Fund will be required to deposit initial margin and maintenance margin with respect to put and call options on futures contracts written by it pursuant to brokers' requirements similar to those described above.

*Options on Index Futures Contracts*. The Fund may also purchase and sell options on index futures contracts. Options on index futures give the purchaser the right, in return for the premium paid, to assume a position in an index futures contract (a long position if the option is a call and a short position if the option is a put), at a specified exercise price at any time during the period of the option. Upon exercise of the option, the delivery of the futures position by the writer of the option to the holder of the option will be accompanied by delivery of the accumulated balance in the writer's futures margin account, which represents the amount by which the market price of the index futures contract, at exercise, exceeds (in the case of a call) or is less than (in the case of a put) the exercise price of the option on the index future. If an option is exercised on the last trading day prior to the expiration date of the option, the settlement will be made entirely in cash equal to the difference between the exercise price of the option and the closing level of the index on which the future is based on the expiration date. Purchasers of options who fail to exercise their options prior to the exercise date suffer a loss of the premium paid.

*Eurodollar and Yankee Dollar Futures Contracts and Options Thereon*. Eurodollar futures contracts enable purchasers to obtain a fixed rate for the lending of funds and sellers to obtain a fixed rate for borrowings. The Fund may use Eurodollar futures contracts and options thereon to hedge against changes in a reference rate, such as LIBOR or SOFR, to which many interest rate swaps and fixed income instruments are linked.

*Options on Stocks, Stock Indices and Other Indices*. The Fund may purchase and write (*i.e.*, sell) put and call options. Such options may relate to particular stocks or stock indices, and may or may not be listed on a domestic or foreign securities exchange and may or may not be cleared and settled by the Options Clearing Corporation ("OCC"). Stock index options are put options and call options on various stock indices. In most respects, they are identical to listed options on common stocks.

There is a key difference between stock options and index options in connection with their exercise. In the case of stock options, the underlying security, common stock, is delivered. However, upon the exercise of an index option, settlement does not occur by delivery of the securities comprising the index. The option holder who exercises the index option receives an amount of cash if the closing level of the stock index upon which the option is based is greater than (in the case of a call) or less than (in the case of a put) the exercise price of the option. This amount of cash is equal to the difference between the closing price of the stock index and the exercise price of the option expressed in dollars times a specified multiple. A stock index fluctuates with changes in the market value of the securities included in the index. For example, some stock index options are based on a broad market index, such as the S&P 500® Index or a narrower market index, such as the S&P 100® Index. Indices may also be based on an industry or market segment.

The Fund may, for the purpose of hedging its portfolio, subject to applicable securities regulations, purchase and write put and call options on foreign stock indices listed on foreign and domestic stock exchanges.

As an alternative to purchasing call and put options on index futures, the Fund may purchase call and put options on the underlying indices themselves. Such options could be used in a manner identical to the use of options on index futures. Options involving securities indices provide the holder with the right to make or receive a cash settlement upon exercise of the option based on movements in the relevant index. Such options must be listed on a national securities exchange and issued by the OCC. Such options may relate to particular securities or to various stock indices, except that the Fund may not write covered options on an index.

 

*Writing Covered Options*. The Fund may write covered call options and covered put options on securities held in its portfolio. Call options written by the Fund give the purchaser the right to buy the underlying securities from the Fund at the stated exercise price at any time prior to the expiration date of the option, regardless of the security's market price; put options give the purchaser the right to sell the underlying securities to the Fund at the stated exercise price at any time prior to the expiration date of the option, regardless of the security's market price.

The Fund may write covered options, which means that, so long as the Fund is obligated as the writer of a call option, it will own the underlying securities subject to the option (or comparable securities satisfying the cover requirements of securities exchanges). In the case of put options, the Fund will hold liquid assets equal to the price to be paid if the option is exercised. In addition, the Fund will be considered to have covered a put or call option if and to the extent that it holds an option that offsets some or all of the risk of the option it has written. The Fund may write combinations of covered puts and calls (straddles) on the same underlying security.

The Fund will receive a premium from writing a put or call option, which increases the Fund's return on the underlying security if the option expires unexercised or is closed out at a profit. The amount of the premium reflects, among other things, the relationship between the exercise price and the current market value of the underlying security, the volatility of the underlying security, the amount of time remaining until expiration, current interest rates, and the effect of supply and demand in the options market and in the market for the underlying security. By writing a call option, the Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option but continues to bear the risk of a decline in the value of the underlying security. By writing a put option, the Fund assumes the risk that it may be required to purchase the underlying security for an exercise price higher than the security's then-current market value, resulting in a potential capital loss unless the security subsequently appreciates in value.

The Fund's obligation to sell an instrument subject to a call option written by it, or to purchase an instrument subject to a put option written by it, may be terminated prior to the expiration date of the option by the Fund's execution of a closing purchase transaction, which is effected by purchasing on an exchange an offsetting option of the same series (*i.e.*, same underlying instrument, exercise price and expiration date) as the option previously written. A closing purchase transaction will ordinarily be effected in order to realize a profit on an outstanding option, to prevent an underlying instrument from being called, to permit the sale of the underlying instrument or to permit the writing of a new option containing different terms on such underlying instrument. The Fund realizes a profit or loss from a closing purchase transaction if the cost of the transaction (option premium plus transaction costs) is less or more than the premium received from writing the option. Because increases in the market price of a call option generally reflect increases in the market price of the security underlying the option, any loss resulting from a closing purchase transaction may be offset in whole or in part by unrealized appreciation of the underlying security.

If the Fund writes a call option but does not own the underlying security, and when it writes a put option, the Fund may be required to deposit cash or securities with its broker as "margin" or collateral for its obligation to buy or sell the underlying security. As the value of the underlying security varies, the Fund may also have to deposit additional margin with the broker. Margin requirements are complex and are fixed by individual brokers, subject to minimum requirements currently imposed by the Federal Reserve Board and by stock exchanges and other self-regulatory organizations.

 

*Purchasing Put Options.* The Fund may purchase put options to protect its portfolio holdings in an underlying security against a decline in market value. Such hedge protection is provided during the life of the put option since the Fund, as holder of the put option, is able to sell the underlying security at the put exercise price regardless of any decline in the underlying security's market price. For a put option to be profitable, the market price of the underlying security must decline sufficiently below the exercise price to cover the premium and transaction costs. By using put options in this manner, the Fund will reduce any profit it might otherwise have realized from appreciation of the underlying security by the premium paid for the put option and by transaction costs.

*Purchasing Call Options.* The Fund may purchase call options, including call options to hedge against an increase in the price of securities that the Fund wants ultimately to buy. Such hedge protection is provided during the life of the call option since the Fund, as holder of the call option, is able to buy the underlying security at the exercise price regardless of any increase in the underlying security's market price. In order for a call option to be profitable, the market price of the underlying security must rise sufficiently above the exercise price to cover the premium and transaction costs. These costs will reduce any profit the Fund might have realized had it bought the underlying security at the time it purchased the call option.

***Swap Agreements***

*Interest Rate Swaps.* Interest rate swap agreements are often used to obtain or preserve a desired return or spread at a lower cost than through a direct investment in an instrument that yields the desired return or spread. They are financial instruments that involve the exchange of one type of interest rate cash flow for another type of interest rate cash flow on specified dates in the future. In a standard interest rate swap transaction, two parties agree to exchange their respective commitments to pay fixed or floating interest rates on a predetermined specified (notional) amount. The swap agreement's notional amount is the predetermined basis for calculating the obligations that the swap counterparties have agreed to exchange. Under most swap agreements, the obligations of the parties are exchanged on a net basis. The two payment streams are netted out, with each party receiving or paying, as the case may be, only the net amount of the two payments. Interest rate swaps can be based on various measures of interest rates, including swap rates, Treasury rates, foreign interest rates and other reference rates.

*Municipal Market Data (MMD) Rate Locks**.*** An MMD Rate Lock permits the Fund to lock in a specific municipal interest rate for a portion of its portfolio to preserve a return on a particular investment or a portion of its portfolio, which in turn protects against any increase in the price of securities to be purchased at a later date. By using an MMD Rate Lock, the Fund can create a synthetic long or short duration position. The Fund will ordinarily use these transactions as a hedge or for duration or risk management, which may not be successful. An MMD Rate Lock is a contract between the Fund and an MMD Rate Lock provider pursuant to which the parties agree to make a net settlement payment to each other on a notional and duration amount, contingent upon whether the Municipal Market Data AAA General Obligation Scale is above or below a specified level on the expiration date of the contract. For example, if the Fund buys an MMD Rate Lock and the Municipal Market Data AAA General Obligation Scale is below the specified level on the expiration date, the counterparty to the contract will make a payment to the Fund equal to the specified level minus the actual level, multiplied by the notional amount of the contract. If the Municipal Market Data AAA General Obligation Scale is above the specified level on the expiration date, the Fund will make a payment to the counterparty equal to the actual level minus the specified level, multiplied by the notional amount of the contract. In connection with investments in MMD Rate Locks, there is a risk that municipal yields will move in the opposite direction than anticipated by the Fund, which would cause the Fund to make payments to its counterparty in the transaction that could adversely affect the Fund's performance.

 

*Equity Swaps.* Equity swaps allow the parties to the swap agreement to exchange components of return on one equity investment (*e.g.*, a basket of equity securities or an index) for a component of return on another non-equity or equity investment, including an exchange of differential rates of return. Equity swaps may be used to invest in a market without owning or taking physical custody of securities in circumstances where direct investment may be restricted for legal reasons or is otherwise impractical. Equity swaps also may be used for other purposes, such as hedging or seeking to increase total return.

*Total Return Swap Agreements.* Total return swap agreements are contracts in which one party agrees to make periodic payments to another party based on the change in market value of the assets underlying the contract, which may include a specified security, basket of securities or securities indices during the specified period, in return for periodic payments based on a fixed or variable interest rate or the total return from other underlying assets. Total return swap agreements may be used to obtain exposure to a security or market without owning or taking physical custody of such security or investing directly in such market. Total return swap agreements may effectively add leverage to the Fund's portfolio because, in addition to its total net assets, the Fund would be subject to investment exposure on the notional amount of the swap.

Total return swap agreements are subject to the risk that a counterparty will default on its payment obligations to the Fund thereunder, and conversely, that the Fund will not be able to meet its obligation to the counterparty. Generally, the Fund will enter into total return swaps on a net basis (*i.e.*, the two payment streams are netted against one another with the Fund receiving or paying, as the case may be, only the net amount of the two payments). The net amount of the excess, if any, of the Fund's obligations over its entitlements with respect to each total return swap will be accrued on a daily basis. If the total return swap transaction is entered into on other than a net basis, the full amount of the Fund's obligations will be accrued on a daily basis.

*Variance, Volatility and Correlation Swap Agreements.* Variance and volatility swaps are contracts that provide exposure to increases or decreases in the volatility of certain referenced assets. Correlation swaps are contracts that provide exposure to increases or decreases in the correlation between the prices of different assets or different market rates.

*Cross-Currency Swaps.* Cross***-***currency swaps are similar to interest rate swaps, except that they involve multiple currencies. The Fund may enter into a cross-currency swap when it has exposure to one currency and desires exposure to a different currency. Typically, the interest rates that determine the cross-currency swap payments are fixed, although occasionally one or both parties may pay a floating rate of interest. Unlike an interest rate swap, however, the principal amounts are exchanged at the beginning of the contract and returned at the end of the contract. In addition to paying and receiving amounts at the beginning and termination of the agreements, both sides will have to pay in full periodically based upon the currency they have borrowed. Changes in foreign exchange currency rates and changes in interest rates, as described above, may negatively affect cross- currency swaps.

 

*Contracts for Differences.* Contracts for differences are swap arrangements in which the parties agree that their return (or loss) will be based on the relative performance of two different groups or baskets of securities. Often, one or both baskets will be an established securities index. The Fund's return will be based on changes in value of theoretical long futures positions in the securities comprising one basket (with an aggregate face value equal to the notional amount of the contract for differences) and theoretical short futures positions in the securities comprising the other basket. The Fund also may use actual long and short futures positions and achieve similar market exposure by netting the payment obligations of the two contracts. The Fund typically enters into contracts for differences (and analogous futures positions) when its portfolio manager believes that the basket of securities constituting the long position will outperform the basket constituting the short position. If the short basket outperforms the long basket, the Fund will realize a loss - even in circumstances when the securities in both the long and short baskets appreciate in value.

*Swaptions.* A swaption is an options contract on a swap agreement. These transactions give a party the right (but not the obligation) to enter into new swap agreements or to shorten, extend, cancel or otherwise modify an existing swap agreement (which are described herein) at some designated future time on specified terms, in return for payment of the purchase price (the "premium") of the option. The Fund may write (sell) and purchase put and call swaptions to the same extent it may make use of standard options on securities or other instruments. The writer of the contract receives the premium and bears the risk of unfavorable changes in the market value on the underlying swap agreement. Swaptions can be bundled and sold as a package. These are commonly called interest rate caps, floors and collars (which are described herein).

Many swaps are complex and often valued subjectively. Many over-the-counter derivatives are complex and their valuation often requires modeling and judgment, which increases the risk of mispricing or incorrect valuation. The pricing models used may not produce valuations that are consistent with the values the Fund realizes when it closes or sells an over-the-counter derivative.

Valuation risk is more pronounced when the Fund enters into over-the-counter derivatives with specialized terms because the market value of those derivatives in some cases is determined in part by reference to similar derivatives with more standardized terms. Incorrect valuations may result in increased cash payment requirements to counterparties, under-collateralization and/or errors in calculation of the Fund's net asset value.

Title VII of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Dodd-Frank Act") established a framework for the regulation of OTC swap markets; the framework outlined the joint responsibility of the CFTC and the SEC in regulating swaps. The CFTC is responsible for the regulation of swaps, the SEC is responsible for the regulation of security-based swaps and they are both jointly responsible for the regulation of mixed swaps.

**Variable- and Floating-Rate Obligations**

Variable- and floating-rate obligations are debt instruments that provide for periodic adjustments in the interest rate and, under certain circumstances, varying principal amounts. Unlike a fixed interest rate, a variable, or floating, rate is one that rises and declines based on the movement of an underlying index of interest rates and may pay interest at rates that are adjusted periodically according to a specified formula. Variable- or floating-rate securities frequently include a demand feature enabling the holder to sell the securities to the issuer at par. In many cases, the demand feature can be exercised at any time. Some securities that do not have variable or floating interest rates may be accompanied by puts producing similar results and price characteristics. Variable-rate demand notes include master demand notes that are obligations that permit the investor to invest fluctuating amounts, which may change daily without penalty, pursuant to direct arrangements between the investor (as lender), and the borrower. The interest rates on these notes fluctuate. The issuer of such obligations normally has a corresponding right, after a given period, to prepay in its discretion the outstanding principal amount of the obligations plus accrued interest upon a specified number of days' notice to the holders of such obligations. Because these obligations are direct lending arrangements between the lender and borrower, it is not contemplated that such instruments generally will be traded. There generally is not an established secondary market for these obligations. Accordingly, where these obligations are not secured by letters of credit or other credit support arrangements, the lender's right to redeem is dependent on the ability of the borrower to pay principal and interest on demand. Such obligations frequently are not rated by credit rating agencies and may involve heightened risk of default by the issuer. Asset-backed securities, bank obligations, convertible securities, corporate debt securities, foreign securities, high-yield securities, money market instruments, municipal securities, participation interests, stripped securities, U.S. Government and related obligations and other types of debt instruments may be structured as variable- and floating-rate obligations.

Most floating rate loans are acquired directly from the agent bank or from another holder of the loan by assignment. Most such loans are secured, and most impose restrictive covenants on the borrower. These loans are typically made by a syndicate of banks and institutional investors, represented by an agent bank which has negotiated and structured the loan and which is responsible generally for collecting interest, principal, and other amounts from the borrower on its own behalf and on behalf of the other lending institutions in the syndicate, and for enforcing its rights and the rights of the syndicate against the borrower. Each of the lending institutions, including the agent bank, lends to the borrower a portion of the total amount of the loan, and retains the corresponding interest in the loan. Floating rate loans may include delayed draw term loans and prefunded or synthetic letters of credit.

The Fund's ability to receive payments of principal and interest and other amounts in connection with loans held by it will depend primarily on the financial condition of the borrower. The failure by the Fund to receive scheduled interest or principal payments on a loan would adversely affect the income of the Fund and would likely reduce the value of its assets, which would be reflected in a reduction in the Fund's NAV. Banks and other lending institutions generally perform a credit analysis of the borrower before originating a loan or purchasing an assignment in a loan. In selecting the loans in which the Fund will invest, however, the Adviser will not rely on that credit analysis of the agent bank, but will perform its own investment analysis of the borrowers. The Adviser's analysis may include consideration of the borrower's financial strength and managerial experience, debt coverage, additional borrowing requirements or debt maturity schedules, changing financial conditions, and responsiveness to changes in business conditions and interest rates. Investments in loans may be of any quality, including "distressed" loans, and will be subject to the Fund's credit quality policy.

Loans may be structured in different forms, including assignments and participations. In an assignment, the Fund purchases an assignment of a portion of a lender's interest in a loan. In this case, the Fund may be required generally to rely upon the assigning bank to demand payment and enforce its rights against the borrower, but would otherwise be entitled to all of such bank's rights in the loan.

The borrower of a loan may, either at its own election or pursuant to terms of the loan documentation, prepay amounts of the loan from time to time. There is no assurance that the Fund will be able to reinvest the proceeds of any loan prepayment at the same interest rate or on the same terms as those of the original loan.

Corporate loans in which the Fund may purchase a loan assignment are made generally to finance internal growth, mergers, acquisitions, recapitalizations, stock repurchases, leveraged buy-outs, dividend payments to sponsors and other corporate activities. The highly leveraged capital structure of certain borrowers may make such loans especially vulnerable to adverse changes in economic or market conditions. The Fund may hold investments in loans for a very short period of time when opportunities to resell the investments that the Fund's portfolio manager believes are attractive arise.

Certain of the loans acquired by the Fund may involve revolving credit facilities under which a borrower may from time to time borrow and repay amounts up to the maximum amount of the facility. In such cases, the Fund would have an obligation to advance its portion of such additional borrowings upon the terms specified in the loan assignment. To the extent that the Fund is committed to make additional loans under such an assignment, it will at all times designate cash or securities in an amount sufficient to meet such commitments.

Notwithstanding its intention in certain situations to not receive material, non-public information with respect to its management of investments in floating rate loans, the Adviser may from time to time come into possession of material, non- public information about the issuers of loans that may be held in the Fund's portfolio. Possession of such information may in some instances occur despite the Adviser's efforts to avoid such possession, but in other instances the Adviser may choose to receive such information (for example, in connection with participation in a creditors' committee with respect to a financially distressed issuer). As, and to the extent, required by applicable law, the Adviser's ability to trade in these loans for the account of the Fund could potentially be limited by its possession of such information. Such limitations on the Adviser's ability to trade could have an adverse effect on the Fund by, for example, preventing the Fund from selling a loan that is experiencing a material decline in value. In some instances, these trading restrictions could continue in effect for a substantial period of time.

In some instances, other accounts managed by the Adviser may hold other securities issued by borrowers whose floating rate loans may be held in the Fund's portfolio. These other securities may include, for example, debt securities that are subordinate to the floating rate loans held in the Fund's portfolio, convertible debt or common or preferred equity securities.

In certain circumstances, such as if the credit quality of the issuer deteriorates, the interests of holders of these other securities may conflict with the interests of the holders of the issuer's floating rate loans. In such cases, the Adviser may owe conflicting fiduciary duties to the Fund and other client accounts. The Adviser will endeavor to carry out its obligations to all of its clients to the fullest extent possible, recognizing that in some cases certain clients may achieve a lower economic return, as a result of these conflicting client interests, than if the Adviser's client accounts collectively held only a single category of the issuer's securities.

**Warrants and Rights**

*Contingent Value Rights*. A contingent value right ("CVR") gives the holder the right to receive an amount, which may be fixed or determined by a formula, in the event that a specified corporate action or other business event or trigger occurs (or fails to occur) during the term of the CVR. CVRs may be awarded to investors in the context of a corporate acquisition or major restructuring, such as a reorganization pursuant to Chapter 11 of the U.S. Bankruptcy Code or other reorganization. For example, investors in an acquired or reorganized company may receive CVRs that enable the investor to receive additional shares of the acquiring company in the event that the acquiring company's share price falls below a certain level by a specified date, or to receive cash payments and/or securities in the event of a future sale or liquidation event involving the company by a specified date. CVRs generally do not entitle a holder to dividends or voting rights with respect to the issuer and do not represent any rights in the assets of the issuer.

**Zero-Coupon, Pay-in-Kind and Step-Coupon Securities**

Zero-coupon, pay-in-kind and step-coupon securities are types of debt instruments that do not necessarily make payments of interest in fixed amounts or at fixed intervals. Asset-backed securities, convertible securities, corporate debt securities, foreign securities, high-yield securities, municipal securities, participation interests, stripped securities, U.S. Government and related obligations and other types of debt instruments may be structured as zero-coupon, pay-in-kind and step-coupon securities.

Pay-in-kind securities normally give the issuer an option to pay cash at a coupon payment date or to give the holder of the security a similar security with the same coupon rate and a face value equal to the amount of the coupon payment that would have been made.

Step-coupon securities trade at a discount from their face value and pay coupon interest that gradually increases over time. The coupon rate is paid according to a schedule for a series of periods, typically lower for an initial period and then increasing to a higher coupon rate thereafter. The discount from the face amount or par value depends on the time remaining until cash payments begin, prevailing interest rates, liquidity of the security and the perceived credit quality of the issue.

Zero-coupon, pay-in-kind and step-coupon securities holders generally have substantially all the rights and privileges of holders of the underlying coupon obligations or principal obligations. Holders of these securities typically have the right upon default on the underlying coupon obligations or principal obligations to proceed directly and individually against the issuer and are not required to act in concert with other holders of such securities.

**ADDITIONAL RISK FACTORS**

The following is a summary of risks of investing in the Fund and the risk characteristics associated with the various securities, instruments, assets and investments as well as strategies and techniques that may be available to the Fund for investment. The Fund's risk profile is largely determined by the Fund's portfolio holdings and principal investment strategies (see the Fund's most recent annual or semiannual report for portfolio holdings information and see the Fund's Prospectus for the description of the Fund's principal investment strategies and principal risks). The Funds are allowed to invest in other securities, instruments, assets and investments, and may engage in strategies and techniques other than those described in the Fund's Prospectus, subjecting the Fund to the risks associated with these other securities, instruments, assets, investments, strategies and techniques.

An investment in the Fund is not a bank deposit and is not insured or guaranteed by any bank, the FDIC or any other government agency. One or more of the following risks may be associated with an investment in a Fund at any time:

**Allocation Risk.** For any Fund that uses an asset allocation strategy in pursuit of its investment objective, there is a risk that the Fund's allocation among asset classes, investments, managers, strategies and/or investment styles will cause the Fund's shares to lose value or cause the Fund to underperform other funds with similar investment objectives and/or strategies, or that the investments themselves will not produce the returns expected.

**Arbitrage Strategies Risk.** The Fund may purchase securities at prices only slightly below the anticipated value to be paid or exchanged for such securities in a merger, exchange offer or cash tender offer, and substantially above the prices at which such securities traded immediately prior to announcement of the transaction. If there is a perception that the proposed transaction will not be consummated or will be delayed, the market price of the security may decline sharply, which would result in a loss to the Fund. In addition, if the portfolio manager(s) determines that the offer is likely to be increased, either by the original bidder or by another party, the Fund may purchase securities above the offer price; such purchases are subject to a high degree of risk.

The consummation of mergers and tender and exchange offers can be prevented or delayed by a variety of factors, including opposition by the management or shareholders of the target company, private litigation or litigation involving regulatory agencies, and approval or non-action of regulatory agencies. The likelihood of occurrence of these and other factors, and their impact on an investment, can be very difficult to evaluate.

**Bankruptcy Process and Trade Claims Risk.** The Fund may purchase bankruptcy claims. There are a number of significant risks inherent in the bankruptcy process. The effect of a bankruptcy filing on a company may adversely and permanently affect the company and cause it to be incapable of restoring itself as a viable business. Many events in a bankruptcy are the product of contested matters and adversarial proceedings. The duration of a bankruptcy proceeding is difficult to predict and a creditor's return on investment can be adversely affected by delays while the plan of reorganization is being finalized. The administrative costs in connection with a bankruptcy proceeding are frequently high and are paid out of the debtor's estate before any return to creditors. The Fund may also purchase trade claims against companies, including companies in bankruptcy or reorganization proceedings, which include claims of suppliers for unpaid goods delivered, claims for unpaid services rendered, claims for contract rejection damages and claims related to litigation. An investment in trade claims is very speculative, illiquid, and carries a high degree of risk. The markets in trade claims are generally not regulated by U.S. federal securities laws or the SEC.

**CFTC Regulation Risk.** The Fund qualifies for an exclusion from the definition of a commodity pool under the CEA and has on file a notice of exclusion under CFTC Rule 4.5. Accordingly, the Adviser is not subject to registration or regulation as a commodity pool operator under the CEA with respect to the Fund, although the Adviser is a registered commodity pool operator and "commodity trading advisor". To remain eligible for the exclusion, the Fund is limited in its ability to use certain financial instruments regulated under the CEA ("commodity interests"), including futures and options on futures and certain swaps transactions. In the event that the Fund's investments in commodity interests are not within the thresholds set forth in the exclusion, the Fund may be required to register as a commodity pool, which could increase Fund expenses, adversely affecting the Fund's total return.

**Confidential Information Access Risk**. In many instances, issuers of floating rate loans offer to furnish material, non-public information ("Confidential Information") to prospective purchasers or holders of the issuer's floating rate loans to help potential investors assess the value of the loan. The portfolio managers may avoid the receipt of Confidential Information about the issuers of floating rate loans being considered for acquisition by the Fund, or held in the Fund. A decision not to receive Confidential Information from these issuers may disadvantage the Fund as compared to other floating rate loan investors, and may adversely affect the price the Fund pays for the loans it purchases, or the price at which the Fund sells the loans. Further, in situations when holders of floating rate loans are asked, for example, to grant consents, waivers or amendments, the ability to assess the desirability thereof may be compromised. For these and other reasons, it is possible that the decision not to receive Confidential Information could adversely affect the Fund's performance.

**Contingent Value Rights Risk.** Risks associated with an investment in CVRs are generally similar to risks associated with investing in options, such as the risk that the required trigger event does not occur prior to a CVR's expiration, causing the CVR to expire with no value. CVRs also present liquidity risk, as they may be difficult or impossible to transfer. Further, because CVRs are valued based on the likelihood of the occurrence of a trigger event, valuation often requires subjective modeling and judgment, which increases the risk of mispricing.

**Derivatives Risk - Forward Contracts Risk**. A forward contract is an over-the-counter derivative transaction between two parties to buy or sell a specified amount of an underlying reference at a specified price (or rate) on a specified date in the future. Forward contracts are negotiated on an individual basis and are not standardized or traded on exchanges. The market for forward contracts is substantially unregulated (there is no limit on daily price movements and speculative position limits are not applicable). The principals who deal in certain forward contract markets are not required to continue to make markets in the underlying references in which they trade and these markets can experience periods of illiquidity, sometimes of significant duration. There have been periods during which certain participants in forward contract markets have refused to quote prices for certain underlying references or have quoted prices with an unusually wide spread between the price at which they were prepared to buy and that at which they were prepared to sell. At or prior to maturity of a forward contract, the Fund may enter into an offsetting contract and may incur a loss to the extent there has been adverse movement in forward contract prices. The liquidity of the markets for forward contracts depends on participants entering into offsetting transactions rather than making or taking delivery. To the extent participants make or take delivery, liquidity in the market for forwards could be reduced. A relatively small price movement in a forward contract may result in substantial losses to the Fund, exceeding the amount of the margin paid. Forward contracts can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk and interest rate risk, while also exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

● A **forward foreign currency contract** is a derivative (forward contract) in which the underlying reference is a country's or region's currency. The Fund may agree to buy or sell a country's or region's currency at a specific price on a specific date in the future. These instruments may fall in value (sometimes dramatically) due to foreign market downswings or foreign currency value fluctuations, subjecting the Fund to foreign currency risk (the risk that Fund performance may be negatively impacted by foreign currency strength or weakness relative to the U.S. dollar, particularly if the Fund exposes a significant percentage of its assets to currencies other than the U.S. dollar). The effectiveness of any currency hedging strategy by a Fund may be reduced by the Fund's inability to precisely match forward contract amounts and the value of securities involved. Forward foreign currency contracts used for hedging may also limit any potential gain that might result from an increase or decrease in the value of the currency. The Fund may use these instruments to gain leveraged exposure to currencies, which is a speculative investment practice that increases the Fund's risk exposure and the possibility of losses. Unanticipated changes in the currency markets could result in reduced performance for the Fund. When the Fund converts its foreign currencies into U.S. dollars, it may incur currency conversion costs due to the spread between the prices at which it may buy and sell various currencies in the market.

● A **forward interest rate agreement** is a derivative whereby the buyer locks in an interest rate at a future settlement date. If the interest rate on the settlement date exceeds the lock rate, the buyer pays the seller the difference between the two rates (based on the notional value of the agreement). If the lock rate exceeds the interest rate on the settlement date, the seller pays the buyer the difference between the two rates (based on the notional value of the agreement). The Fund may act as a buyer or a seller.

**Derivatives Risk - Inverse Floaters Risk**. Inverse variable or floating rate obligations, sometimes referred to as inverse floaters, are a type of over-the-counter derivative debt instrument with a variable or floating coupon rate that moves in the opposite direction of an underlying reference, typically short-term interest rates. As short-term interest rates go down, the holders of the inverse floaters receive more income and, as short-term interest rates go up, the holders of the inverse floaters receive less income. Variable rate securities provide for a specified periodic adjustment in the coupon rate, while floating rate securities have a coupon rate that changes whenever there is a change in a designated benchmark index or the issuer's credit rating. While inverse floaters tend to provide more income than similar term and credit quality fixed-rate bonds, they also exhibit greater volatility in price movement, which could result in significant losses for the Fund. An inverse floater may have the effect of investment leverage to the extent that its coupon rate varies by a magnitude that exceeds the magnitude of the change in the index or reference rate of interest, which could result in increased losses for the Fund. There is a risk that the current interest rate on variable and floating rate instruments may not accurately reflect current market interest rates or adequately compensate the holder for the current creditworthiness of the issuer. Some inverse floaters are structured with liquidity features and may include market-dependent liquidity features that may expose the Fund to greater liquidity risk. Inverse floaters can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk and interest rate risk, while also exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

**Derivatives Risk - Structured Investments Risk**. Structured investments are over-the-counter derivatives that provide principal and/or interest payments based on the value of an underlying reference(s). Structured investments typically provide interest income, thereby offering a potential yield advantage over investing directly in an underlying reference. Structured investments may lack a liquid secondary market and their prices or value can be volatile which could result in significant losses for the Fund. In some cases, depending on its terms, a structured investment may provide that principal and/or interest payments may be adjusted below zero resulting in a potential loss of principal and/or interest payments. Additionally, the particular terms of a structured investment may create economic leverage by requiring payment by the issuer of an amount that is a multiple of the price change of the underlying reference. Economic leverage will increase the volatility of structured investment prices, and could result in increased losses for the Fund. The Fund's use of structured instruments may not work as intended. If structured investments are used to reduce the duration of the Fund's portfolio, this may limit the Fund's return when having a longer duration would be beneficial (for instance, when interest rates decline). Structured investments can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk and interest rate risk, while also exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

● **An equity-linked note** (ELN) is a derivative (structured investment) that has principal and/or interest payments based on the value of a single equity security, a basket of equity securities, or an index of equity securities, and generally has risks similar to these underlying equity securities. ELNs may be leveraged or unleveraged. An ELN typically provides interest income, thereby offering a yield advantage over investing directly in an underlying equity. The Fund may purchase ELNs that trade on a securities exchange or those that trade on the over-the-counter markets, as well as in privately negotiated transactions with the issuer of the ELN. Investments in ELNs are also subject to liquidity risk, which may make ELNs difficult to sell and value. The liquidity of unlisted ELNs is normally determined by the willingness of the issuer to make a market in the ELN. While the Fund will seek to purchase ELNs only from issuers that it believes to be willing and able to repurchase the ELN at a reasonable price, there can be no assurance that the Fund will be able to sell at such a price. Furthermore, such inability to sell may impair the Fund's ability to enter into other transactions at a time when doing so might be advantageous. The Fund's investments in ELNs have the potential to lead to significant losses, including the amount the Fund invested in the ELN, because ELNs are subject to the market and volatility risks associated with their underlying equity. In addition, because ELNs often take the form of unsecured notes of the issuer, the Fund would be subject to the risk that the issuer may default on its obligations under the ELN, thereby subjecting the Fund to the further risk of being too concentrated in the securities (including ELNs) of that issuer. However, the Fund typically considers ELNs alongside other securities of the issuer in its assessment of issuer concentration risk. In addition, ELNs may exhibit price behavior that does not correlate with the underlying securities. ELNs may also be subject to leverage risk. The Fund may or may not hold an ELN until its maturity. ELNs also include participation notes.

**Derivatives Risk - Swaps Risk**. In a typical swap transaction, two parties agree to exchange the return earned on a specified underlying reference for a fixed return or the return from another underlying reference during a specified period of time. Swaps may be difficult to value and may be illiquid. Swaps could result in Fund losses if the underlying asset or reference does not perform as anticipated. Swaps create significant investment leverage such that a relatively small price movement in a swap may result in immediate and substantial losses to the Fund. The Fund may only close out a swap with its particular counterparty, and may only transfer a position with the consent of that counterparty. Certain swaps, such as short swap transactions and total return swaps, have the potential for unlimited losses, regardless of the size of the initial position. Swaps can increase the Fund's risk exposure to underlying references and their attendant risks, such as credit risk, market risk, foreign currency risk, and interest rate risk, while also exposing the Fund to correlation risk, counterparty risk, hedging risk, inflation risk, leverage risk, liquidity risk, pricing risk and volatility risk.

● A **credit default swap** (including a swap on a credit default index, sometimes referred to as a credit default swap index) is a derivative and special type of swap where one party pays, in effect, an insurance premium through a stream of payments to another party in exchange for the right to receive a specified return upon the occurrence of a particular credit event by one or more third parties, such as bankruptcy, default or a similar event. A credit default swap may be embedded within a structured note or other derivative instrument. Credit default swaps enable an investor to buy or sell protection against such a credit event (such as an issuer's bankruptcy, restructuring or failure to make timely payments of interest or principal). Credit default swap indices are indices that reflect the performance of a basket of credit default swaps and are subject to the same risks as credit default swaps. If such a default were to occur, any contractual remedies that the Fund may have may be subject to bankruptcy and insolvency laws, which could delay or limit the Fund's recovery. Thus, if the counterparty under a credit default swap defaults on its obligation to make payments thereunder, as a result of its bankruptcy or otherwise, the Fund may lose such payments altogether, or collect only a portion thereof, which collection could involve costs or delays. The Fund's return from investment in a credit default swap index may not match the return of the referenced index. Further, investment in a credit default swap index could result in losses if the referenced index does not perform as expected. Unexpected changes in the composition of the index may also affect performance of the credit default swap index. If a referenced index has a dramatic intraday move that causes a material decline in the Fund's net assets, the terms of the Fund's credit default swap index may permit the counterparty to immediately close out the transaction. In that event, the Fund may be unable to enter into another credit default swap index or otherwise achieve desired exposure, even if the referenced index reverses all or a portion of its intraday move.

● An **inflation rate swap** is a derivative typically used to transfer inflation risk from one party to another through an exchange of cash flows. In an inflation rate swap, one party pays a fixed rate on a notional principal amount, while the other party pays a floating rate linked to an inflation index, such as the Consumer Price Index ("CPI").

● An **interest rate swap** is a derivative in which two parties agree to exchange interest rate cash flows, based on a specified notional amount from a fixed rate to a floating rate (or vice versa) or from one floating rate to another. Interest rate swaps can be based on various measures of interest rates, including swap rates, treasury rates, foreign interest rates and other reference rates.

● **Total return swaps** are derivative swap transactions in which one party agrees to pay the other party an amount equal to the total return of a defined underlying reference during a specified period of time. In return, the other party would make periodic payments based on a fixed or variable interest rate or on the total return of a different underlying reference.

**Derivatives Risk - Swaptions Risk**. A swaption is an options contract on a swap agreement. These transactions give the purchasing party the right (but not the obligation) to enter into new swap agreements or to shorten, extend, cancel or otherwise modify an existing swap agreement at some designated future time on specified terms, in return for payment of the purchase price (the "premium") of the option. The Fund may write (sell) and purchase put and call swaptions to the same extent it may make use of standard options on securities or other instruments. The writer of the contract receives the premium and bears the risk of unfavorable changes in the market value on the underlying swap agreement. Swaptions can be bundled and sold as a package. These are commonly called interest rate caps, floors and collars.

**Environmental, Social and Governance Investing Risk**. The Fund's consideration of issuer environmental, social and corporate governance data may cause the Fund to invest in, forego investing in, or sell securities of issuers, including issuers within certain sectors, regions and countries that could negatively impact Fund performance, including relative to a benchmark or other funds that do not consider environmental, social and corporate governance data, or funds that do but make different investment decisions based thereon.

**Event-Driven Trading Risk**. The Fund may seek to profit from the occurrence of specific corporate or other events. A delay in the timing of these events, or the failure of these events to occur at all, may have a significant negative effect on the Fund's performance. Event-driven investing requires the portfolio managers to make predictions about (i) the likelihood that an event will occur and (ii) the impact such event will have on the value of a company's securities. If the event fails to occur or it does not have the effect foreseen, losses can result. For example, the adoption of new business strategies, a meaningful change in management or the sale of a division or other significant assets by a company may not be valued as highly by the market as the portfolio managers had anticipated, resulting in losses. In addition, a company may announce a plan of restructuring which promises to enhance value and fail to implement it, resulting in losses to investors.

**Exchange-Traded Notes Risk**. Exchange-traded notes (ETNs) are unsecured, unsubordinated debt securities that expose the Fund to the risk that an ETN's issuer may be unable to pay, which means that the Fund is subject to issuer credit risk, including that the value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying benchmark or strategy remaining unchanged. ETNs do not typically offer principal protection, so the Fund may lose some or all of its investment. The returns of ETNs are usually linked to the performance of a market benchmark or strategy, less investor fees and expenses. The Fund will bear its proportionate share of the fees and expenses of the ETN, which may cause the Fund's returns to be lower. The return on ETNs will typically be lower than the total return on a direct investment in the components of the underlying index or strategy because of the ETN's investor fees and expenses. The value of an ETN may also be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in the underlying market, changes in the applicable interest rates, and economic, legal, political, or geographic events that affect the referenced underlying benchmark or strategy.

**Foreign Currency Risk**. The performance of the Fund may be materially affected positively or negatively by foreign currency strength or weakness relative to the U.S. dollar, particularly if the Fund invests a significant percentage of its assets in foreign securities or other assets denominated in currencies other than the U.S. dollar. Currency rates in foreign countries may fluctuate significantly over short or long periods of time for a number of reasons, including changes in interest rates, imposition of currency controls and economic or political developments in the U.S. or abroad. The Fund may also incur currency conversion costs when converting foreign currencies into U.S. dollars and vice versa. Restrictions on currency trading may be imposed by foreign countries, which may adversely affect the value of your investment in the Fund. Even though the currencies of some countries may be pegged to the U.S. dollar, the conversion rate may be controlled by government regulation or intervention at levels significantly different than what would normally prevail in a free market. Significant revaluations of the U.S. dollar exchange rate of these currencies could cause substantial reductions in the Fund's NAV.

**Foreign Currency-Related Tax Risk**. As a regulated investment company ("RIC"), the Fund must derive at least 90% of its gross income for each taxable year from sources treated as "qualifying income" under the Internal Revenue Code of 1986, as amended. The Fund may gain exposure to local currency markets through forward currency contracts. Although foreign currency gains currently constitute "qualifying income," the Internal Revenue Service has the authority to issue regulations excluding from the definition of "qualifying income" a RIC's foreign currency gains not "directly related" to its "principal business" of investing in stock or securities (or options and futures with respect thereto). Such regulations might treat gains from some of the Fund's foreign currency-denominated positions as not qualifying income and there is a possibility that such regulations might be applied retroactively, in which case, the Fund might not qualify as a RIC for one or more years. In the event the Internal Revenue Service issues such regulations, the Fund's Board may authorize a significant change in investment strategy or the Fund's liquidation.

**Frontier Market Risk**. Frontier market countries generally have smaller economies and even less developed capital markets than typical emerging market countries (which themselves have increased investment risk relative to more developed market countries) and, as a result, the Fund's exposure to risks associated with investing in emerging market countries are magnified when the Fund invests in frontier market countries. The increased risks include: the potential for extreme price volatility and illiquidity in frontier market countries; government ownership or control of parts of the private sector and of certain companies; trade barriers, exchange controls, managed adjustments in relative currency values and other protectionist measures imposed or negotiated by the countries with which frontier market countries trade; and the relatively new and unsettled securities laws in many frontier market countries. In addition, frontier market countries are more likely to experience instability resulting, for example, from rapid changes or developments in social, political and economic conditions. Some frontier market countries have a higher risk of currency devaluations, and some of these countries may experience periods of high inflation or rapid changes in inflation rates and may have hostile relations with other countries.

**Geographic Focus Risk**. The Fund may be particularly susceptible to risks related to economic, political, regulatory or other events or conditions affecting issuers and countries within the specific geographic regions in which the Fund invests. Currency devaluations could occur in countries that have not yet experienced currency devaluation to date, or could continue to occur in countries that have already experienced such devaluations. As a result, the Fund's NAV may be more volatile than the NAV of a more geographically diversified fund.

**Growth Securities Risk**. Growth securities typically trade at a higher multiple of earnings than other types of equity securities. Accordingly, the market values of growth securities may never reach their expected market value and may decline in price. In addition, growth securities, at times, may not perform as well as value securities or the stock market in general, and may be out of favor with investors for varying periods of time. Growth securities may also be sensitive to movements in interest rates.

**Hedging Transactions Risk**. The Fund may utilize financial instruments, both for investment purposes and for risk management purposes in order to (i) protect against possible changes in the market value of the Fund's investment portfolio resulting from fluctuations in the securities markets and changes in interest rates; (ii) protect the Fund's unrealized gains in the value of the Fund's investment portfolio; (iii) facilitate the sale of any such investments; (iv) enhance or preserve returns, spreads or gains on any investment in the Fund's portfolio; (v) hedge the interest rate or currency exchange rate on any of the Fund's liabilities or assets; (vi) protect against any increase in the price of any securities the Fund anticipates purchasing at a later date or (vii) for any other reason that the Adviser deems appropriate.

The success of the Fund's hedging strategy will depend, in part, upon the Adviser's ability to correctly assess the degree of correlation between the performance of the instruments used in the hedging strategy and the performance of the portfolio investments being hedged. Since the characteristics of many securities change as markets change or time passes, the success of the Fund's hedging strategy will also be subject to the Adviser's ability to continually recalculate, readjust and execute hedges in an efficient and timely manner. While the Fund may enter into hedging transactions to seek to reduce risk, such transactions may result in a poorer overall performance for the Fund than if it had not engaged in such hedging transactions. For a variety of reasons, the Adviser may not seek to establish a perfect correlation between the hedging instruments utilized and the portfolio holdings being hedged. Such an imperfect correlation may prevent the Fund from achieving the intended hedge or expose the Fund to risk of loss. The Adviser may not hedge against a particular risk because it does not regard the probability of the risk occurring to be sufficiently high as to justify the cost of the hedge, or because it does not foresee the occurrence of the risk. The successful utilization of hedging and risk management transactions requires skills complementary to those needed in the selection of the Fund's portfolio holdings.

**Highly Leveraged Transactions Risk**. The loans or other debt instruments in which the Fund invests may consist of transactions involving refinancings, recapitalizations, mergers and acquisitions and other financings for general corporate purposes. The Fund's investments also may include senior obligations of a borrower issued in connection with a restructuring pursuant to Chapter 11 of the U.S. Bankruptcy Code (commonly known as "debtor-in-possession" financings), provided that such senior obligations are determined by the Fund's portfolio managers to be a suitable investment for the Fund. In such highly leveraged transactions, the borrower assumes large amounts of debt in order to have the financial resources to attempt to achieve its business objectives. Such business objectives may include but are not limited to: management's taking over control of a company (leveraged buy-out); reorganizing the assets and liabilities of a company (leveraged recapitalization); or acquiring another company. Loans or other debt instruments that are part of highly leveraged transactions involve a greater risk (including default and bankruptcy) than other investments.

**Impairment of Collateral Risk**. The value of collateral, if any, securing a loan can decline, and may be insufficient to meet the borrower's obligations or difficult or costly to liquidate. In addition, the Fund's access to collateral may be limited by bankruptcy or other insolvency laws. Further, certain floating rate and other loans may not be fully collateralized and may decline in value.

**Inflation-Protected Securities Risk**. Inflation-protected debt securities tend to react to changes in real interest rates. Real interest rates can be described as nominal interest rates minus the expected impact of inflation. In general, the price of an inflation-protected debt security falls when real interest rates rise, and rises when real interest rates fall. Interest payments on inflation-protected debt securities will vary as the principal and/or interest is adjusted for inflation and may be more volatile than interest paid on ordinary bonds. In periods of deflation, the Fund may have no income at all from such investments. Income earned by a shareholder depends on the amount of principal invested, and that principal will not grow with inflation unless the shareholder reinvests the portion of Fund distributions that comes from inflation adjustments. A Fund's investment in certain inflation-protected debt securities may generate taxable income in excess of the interest they pay to the Fund, which may cause the Fund to sell investments to obtain cash to make income distributions to shareholders, including at times when it may not be advantageous to do so.

**IPO Risk**. IPOs are subject to many of the same risks as investing in companies with smaller market capitalizations. To the extent the Fund determines to invest in IPOs, it may not be able to invest to the extent desired, because, for example, only a small portion (if any) of the securities being offered in an IPO are available to the Fund. The investment performance of the Fund during periods when it is unable to invest significantly or at all in IPOs may be lower than during periods when the Fund is able to do so. In addition, as the Fund increases in size, the impact of IPOs on the Fund's performance will generally decrease. IPOs sold within 12 months of purchase may result in increased short-term capital gains, which will be taxable to the Fund's shareholders as ordinary income.

**Listed Private Equity Fund Investment Risk**. Private equity funds include financial institutions or vehicles whose principal business is to invest in and lend capital to privately held companies. The Fund is subject to the underlying risks that affect private equity funds in which it invests, which may include increased liquidity risk (the risk that it may not be possible for the Fund to liquidate the instrument at an advantageous time or price), pricing risk (the risk that the investment may be difficult to value), sector risk (the risk that a significant portion of Fund assets invested in one or more economic sectors may make the Fund more vulnerable to unfavorable developments in that sector than funds that invest more broadly) and credit risk (the risk that the issuer of a debt instrument will default or otherwise become unable, or be perceived to be unable or unwilling, to honor a financial obligation, such as making payments to the Fund when due). Limited or incomplete information about the companies in which private equity funds invest, and relatively concentrated investment portfolios of private equity funds, may expose the Fund to greater volatility and risk of loss. Fund investment in private equity funds subjects Fund shareholders indirectly to the fees and expenses incurred by private equity funds.

**Loan Assignment/Loan Participation Risk**. If a bank loan is acquired through an assignment, the Fund may not be able to unilaterally enforce all rights and remedies under the loan and with regard to any associated collateral. If a bank loan is acquired through a participation, the Fund generally will have no right to enforce compliance by the borrower with the terms of the loan agreement, and the Fund may not benefit from the collateral supporting the debt obligation in which it has purchased the participation. As a result, the Fund will be exposed to the credit risk of both the borrower and the institution selling the participation.

**Loan Interests Risk**. Loan interests may not be considered "securities," and purchasers, such as the Fund, therefore may not be entitled to rely on the anti-fraud protections of the federal securities laws. Loan interests generally are subject to restrictions on transfer, and the Fund may be unable to sell loan interests at a time when it may otherwise be desirable to do so or may be able to sell them only at prices that are less than what the Fund regards as their fair market value. Accordingly, loan interests may at times be illiquid. Loan interests may be difficult to value and typically have extended settlement periods (generally greater than 7 days). This exposes the Fund to the risk that the receipt of principal and interest payments may be late due to delayed interest settlement. Extended settlement periods during significant Fund redemption activity could potentially cause increased short-term liquidity demands on the Fund. As a result, the Fund may be forced to sell investments at unfavorable prices, or borrow money or effect short settlements where possible (at a cost to the Fund), in an effort to generate sufficient cash to pay redeeming stockholders. The Fund's actions in this regard may not be successful. Interests in loans created to finance highly leveraged companies or transactions, such as corporate acquisitions, may be especially vulnerable to adverse changes in economic or market conditions.

Interests in secured loans have the benefit of collateral and, typically, of restrictive covenants limiting the ability of the borrower to further encumber its assets, although many covenants may be waived or modified with the consent of a certain percentage of the holders of the loans even if the Fund does not consent. There is a risk that the value of any collateral securing a loan in which the Fund has an interest may decline and that the collateral may not be sufficient to cover the amount owed on the loan. In most loan agreements there is no formal requirement to pledge additional collateral. In the event the borrower defaults, the Fund's access to the collateral may be limited or delayed by bankruptcy or other insolvency laws. Further, there is a risk that a court could take action with respect to a loan that is adverse to the holders of the loan, including the Fund. Such actions may include invalidating the loan, the lien on the collateral, the priority status of the loan, or ordering the refund of interest previously paid by the borrower. Any such actions by a court could adversely affect the Fund's performance. A default or expected default of a loan could also make it difficult for the Fund to sell the loan at a price approximating the value previously placed on it. In order to enforce its rights in the event of a default, bankruptcy or similar situation, the Fund may be required to retain legal or similar counsel. This may increase the Fund's operating expenses and adversely affect its NAV. Loans that have a lower priority for repayment in an issuer's capital structure may involve a higher degree of overall risk than more senior loans of the same borrower. In the event of a default, second lien secured loans will generally be paid only if the value of the collateral exceeds the amount of the borrower's obligations to the first lien secured lenders. The remaining collateral may not be sufficient to cover the full amount owed on the loan in which the Fund has an interest. In addition, if a secured loan is foreclosed, the Fund would likely bear the costs and liabilities associated with owning and disposing of the collateral. The collateral may be difficult to sell and the Fund would bear the risk that the collateral may decline in value while the Fund is holding it. From time to time, disagreements may arise amongst the holders of loans and debt in the capital structure of an issuer, which may give rise to litigation risks, including the risk that a court could take action adverse to the holders of the loan, which could negatively impact the Fund's performance.

The Fund may acquire a loan interest by obtaining an assignment of all or a portion of the interests in a particular loan that are held by an original lender or a prior assignee. As an assignee, the Fund will usually succeed to all rights and obligations of its assignor with respect to the portion of the loan that is being assigned. However, the rights and obligations acquired by the purchaser of a loan assignment may differ from, and be more limited than, those held by the original lenders or the assignor. Alternatively, the Fund may acquire a participation interest in a loan that is held by another party. When the Fund's loan interest is a participation, the Fund may have less control over the exercise of remedies than the party selling the participation interest, and the Fund normally would not have any direct rights against the borrower. As a participant, the Fund would also be subject to the risk that the party selling the participation interest would not remit the Fund's pro rata share of loan payments to the Fund. It may also be difficult for the Fund to obtain an accurate picture of a lending bank's financial condition.

**Master Limited Partnership Risk**. Investments in securities (units) of master limited partnerships involve risks that differ from an investment in common stock. Holders of these units have more limited rights to vote on matters affecting the partnership.

These units may be subject to cash flow and dilution risks. There are also certain tax risks associated with such an investment. In particular, the Fund's investment in master limited partnerships can be limited by the Fund's intention to qualify as a regulated investment company for U.S. federal income tax purposes, and can limit the Fund's ability to so qualify. In addition, conflicts of interest may exist between common unit holders, subordinated unit holders and the general partner of a master limited partnership, including a conflict arising as a result of incentive distribution payments. In addition, there are risks related to the general partner's right to require unit holders to sell their common units at an undesirable time or price.

**Multi-Strategy Risk**. The multi-strategy approach employed by the Fund involves special risks, which include the risk that investment decisions, at the Fund or the underlying fund level, may conflict with each other; for example, at any particular time, one manager may be purchasing shares of an issuer whose shares are being sold by another manager. Consequently, the Fund could indirectly incur transaction costs without accomplishing any net investment result. Also, managers may use proprietary or licensed investment strategies that are based on considerations and factors that are not fully disclosed to the Fund or other investors.

Moreover, consistent with the Fund's investment objectives, these proprietary or licensed investment strategies, which may include quantitative mathematical models or systems, may be changed or refined over time. A manager (or the licensor of the strategies used by the manager) may make certain changes to the strategies the manager has previously used, may not use such strategies at all (or the manager's license may be revoked), or may use additional strategies, where such changes or discretionary decisions, and the reasons for such changes or decisions, are also not disclosed to the Fund or other investors. These strategies may involve risks under some market conditions that are not anticipated by the Adviser or the Fund.

**Opportunistic Investing Risk**. Undervalued securities involve the risk that they may never reach their expected full market value, either because the market fails to recognize the security's intrinsic worth or the expected value was misgauged. Securities that are believed to be undervalued by the portfolio managers may decline in price. Turnaround companies may never improve their fundamentals, may take much longer than expected to improve, or may improve much less than expected. Development stage companies could fail to develop and deplete their assets, resulting in large percentage losses.

**Qualified Financial Contracts Risk**. Qualified financial contracts include agreements relating to swaps, currency forwards and other derivatives as well as repurchase agreements and securities lending agreements. Beginning in 2019, regulations adopted by prudential regulators will require certain qualified financial contracts entered into with certain counterparties that are part of a U.S. or foreign banking organization designated as a global-systemically important banking organization to include contractual provisions that delay or restrict the rights of counterparties, such as the Funds, to exercise certain close-out, cross-default and similar rights under certain conditions. Qualified financial contracts are subject to a stay for a specified time period during which counterparties, such as the Funds, will be prevented from closing out a qualified financial contract if the counterparty is subject to resolution proceedings and prohibit the Funds from exercising default rights due to a receivership or similar proceeding of an affiliate of the counterparty. Implementation of these requirements may increase credit and other risks to the Funds.

**Repurchase Agreements Risk**. Repurchase agreements are agreements in which the seller of a security to the Fund agrees to repurchase that security from the Fund at a mutually agreed upon price and time. Repurchase agreements carry the risk that the counterparty may not fulfill its obligations under the agreement. This could cause the Fund's income and the value of your investment in the Fund to decline.

**Reverse Repurchase Agreements Risk**. Reverse repurchase agreements are agreements in which a Fund sells a security to a counterparty, such as a bank or broker-dealer, in return for cash and agrees to repurchase that security at a mutually agreed upon price and time. Reverse repurchase agreements carry the risk that the market value of the security sold by the Fund may decline below the price at which the Fund must repurchase the security. Reverse repurchase agreements also may be viewed as a form of borrowing, and borrowed assets used for investment creates leverage risk (the risk that losses may be greater than the amount invested). Leverage can create an interest expense that may lower the Fund's overall returns. Leverage presents the opportunity for increased net income and capital gains, but may also exaggerate the Fund's volatility and risk of loss. There can be no guarantee that this strategy will be successful.

**Stripped Securities Risk**. Stripped securities are the separate income or principal components of debt securities. These securities are particularly sensitive to changes in interest rates, and therefore subject to greater fluctuations in price than typical interest bearing debt securities. For example, stripped treasury securities have greater interest rate risk (the risk of losses attributable to changes in interest rates) than traditional government securities with identical credit ratings.

**Zero-Coupon Bonds Risk**. Zero-coupon bonds are bonds that do not pay interest in cash on a current basis, but instead accrue interest over the life of the bond. As a result, these securities are issued at a discount and their values may fluctuate more than the values of similar securities that pay interest periodically. Although these securities pay no interest to holders prior to maturity, interest accrued on these securities is reported as income to the Fund and affects the amounts distributed to its stockholders, which may cause the Fund to sell investments to obtain cash to make income distributions to shareholders, including at times when it may not be advantageous to do so.

Certain of the risks described above in this SAI may also apply, directly or indirectly, to the Adviser and its affiliates, which may negatively impact their respective abilities to provide services to the Fund, potentially resulting in losses to the Fund or other consequences.

**MANAGEMENT OF THE FUND**

**Investment Management Agreement**

Although the Adviser intends to devote such time and effort to the business of the Fund as is reasonably necessary to perform its duties to the Fund, the services of the Adviser are not exclusive and the Adviser provides similar services to other investment companies and other clients and may engage in other activities.

The investment management agreement between the Adviser and the Fund (the "Investment Management Agreement") also provides that in the absence of willful misfeasance, bad faith, gross negligence or reckless disregard of its obligations thereunder, the Adviser (and its officers, managers, agents, employees, partners, controlling persons, members, and any other persons or entity affiliated with the Adviser) is not be liable to the Fund, the members of the Board, or any of the Fund's shareholders for any act or omission by the Adviser in the course of, or connected with, rendering advisory services provided from time to time by the Adviser or for any losses that may be sustained in the purchase, holding or sale of any security of the Fund. The Investment Management Agreement also provides for indemnification by the Fund of the Adviser, its officers, managers, employees, agents, partners, controlling persons, members, and any other person affiliated with the Adviser for all damages, liabilities, costs and expenses incurred by them in connection with their services to the Fund, subject to certain limitations and conditions.

The Investment Management Agreement provides for the Fund to pay a monthly management fee at an annual rate equal to 1.05% of the average daily value of the Fund's Managed Assets. "Managed Assets" means the Fund's average daily gross asset value, minus the sum of the Fund's accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper and notes issued by the Fund) and the liquidation preference of any outstanding preferred shares.

The Fund and the Adviser have entered into the Expense Limitation Agreement, pursuant to which the Adviser has agreed to limit expenses, excluding interest, taxes, investor relations services, other investment-related costs, leverage expenses, extraordinary expenses, other expenses not incurred in the ordinary course of the Fund's business, and expenses of any counsel or other persons or services retained by the Fund's Independent Trustees, to 1.05% of Managed Assets plus 0.30% of average daily net assets. For the year ended October 31, 2024, $987,184 fees were waived and reimbursed. The Adviser may, at a later date, recoup from the Fund fees waived and/or other expenses reimbursed by the Adviser during the previous 36 months, but only if, after such recoupment, the Fund's expense ratio does not exceed the percentage described above. For the year ended October 31, 2024, none of the fees waived were recouped. The current Expense Limitation Agreement expires on July 1, 2026 and automatically renews for one-year terms. The Expense Limitation Agreement may be terminated or modified at any time, upon approval of the Board.

The Investment Management Agreement will continue in effect from year to year provided that each continuance is specifically approved at least annually by both (1) the vote of a majority of the Board or the vote of a majority of the outstanding voting securities of the Fund (as such term is defined in the Investment Company Act) and (2) by the vote of a majority of the Trustees who are not parties to the Investment Management Agreement or "interested persons" (as such term is defined in the Investment Company Act) of any such party, cast in person at a meeting called for the purpose of voting on such approval. The Investment Management Agreement may be terminated as a whole at any time by the Fund, without the payment of any penalty, by action of the Board or by a majority of the Fund's outstanding voting securities or by the Adviser, on 60 days' written notice by either party to the other. The Investment Management Agreement will terminate automatically in the event of any transfer or "assignment" (as such term is defined in the Investment Company Act and the rules thereunder) thereof.

The table below sets forth information about the total management fees paid by the Fund to the Adviser, and the amounts waived and reimbursed by the Adviser, for the periods indicated:

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| | | |
|:---|:---|:---|
| **Fiscal Year Ended** | **Paid to the Adviser** | **Waived and Reimbursed**<br> **by the Adviser<sup>(1)</sup>** |
| October 31, 2024 | $4340801 | $987184 |
| October 31, 2023 | $4797121 | $450898 |
| October 31, 2022 | $5442997 | $1525184 |

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(1) Waived
and reimbursed fees shown are net of any recoupment by the Adviser.

**The Board of Trustees**

The Fund is governed by the Board, which oversees the Fund's business and affairs. The Board delegates the day-to-day management of the Fund to the Fund's officers and to various service providers that have been contractually retained to provide such day-to-day services. The Trustees oversee the Fund's activities, review contractual arrangements with companies that provide services to the Fund, and review the Fund's investment performance. The following table provides biographical information about the Trustees as of the date of this SAI, including their principal occupations during the past five years.

**Interested Trustees**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address<sup>(1)</sup>,** <br> **Year of Birth** | **Position(s) Held with Fund** | **Term of Office and Length of Time Served** | **Principal Occupations in the Past 5 Years** | **Number of Funds in the Fund Complex Overseen by Trustee** | **Other Directorships Held in the Past 5 Years** |
| Andrew Kellerman<br> (1965) | Trustee | Since July 2020 | Served as Partner, President, and Head of Business Development at Saba Capital Management, L.P. since 2018 | 2 | Saba Capital Income & Opportunities Fund II |

---

(1) The
mailing address for Andrew Kellerman is 405 Lexington Avenue, 58<sup>th</sup> Floor, New York, NY 10174.

**Independent Trustees**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Name, Address<sup>(1)</sup>,** <br> **Year of Birth** | **Position(s) Held with Fund** | **Term of Office and Length of Time Served** | **Principal Occupations in the Past 5 Years** | **Number of Funds in the Fund Complex Overseen by Trustee** | **Other Directorships Held in the Past 5 Years** |
| Thomas Bumbolow<br> (1976) | Trustee | Since January 2021 | Thomas Bumbolow currently serves as Head of Distribution & Business Development at American Life, an insurance company which blends innovative reinsurance capabilities with an elite asset management business. Mr. Bumbolow also serves as advisor to Limitless Ventures, a venture-based social fund and was the co-Founder of protoCapital, a merchant bank that operated from 2017-2020. Mr. Bumbolow has 20 years of experience at JP Morgan Chase, where he held various roles in fixed-income sales and trading from 1997-2017. He has been a board member of Stepping Stones Museum for Children since 2018. | 1 | Stepping Stones Museum |
| Karen Caldwell<br> (1959) | Trustee | Since July 2020 | Karen Caldwell has served as the Chief Financial Officer of Tides since November 2024. Previously, Ms. Caldwell served as the Chief Financial Officer of Reform Alliance from 2019 to November 2024. From 2018 to 2019, Ms. Caldwell served as the Chief Financial Officer and Treasurer of the NHP Foundation, a non-profit dedicated to increasing housing affordability. She has been a board member of Saba Income & Opportunities Fund II since February 2023. | 2 | Saba Capital Income & Opportunities Fund II |
| Ketu Desai<br> (1982) | Trustee | Since July 2020 | Ketu Desai has served as the founding partner and Principal of i-squared Wealth Management, Inc., a private wealth investment management firm, since 2016. He has been a board member of Saba Capital Income & Opportunities Fund II since February 2023. | 2 | Saba Capital Income & Opportunities Fund II; ASA Gold and Precious Metals Limited Fund |
| Anatoly Nakum<br> (1974) | Trustee | Since April 2024 | Anatoly Nakum has served as the Head of Capital Markets at ESG Financial from 2021 to present; Mr. Nakum formerly served as the Head of Credit Trading at Americas at Credit Agricole from 2018 to 2020. | 2 | Saba Capital Income & Opportunities Fund II |

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(1) The
mailing address for each Independent Trustee is 405 Lexington Avenue, 58<sup>th</sup> Floor, New York, NY 10174.

**Board Leadership Structure and Related Matters** 

The Board consists of five individuals (each, a "Trustee"), four of whom are Independent Trustees. Andrew Kellerman, an Interested Trustee, serves as the Chairperson of the Board. The responsibilities of the Chairperson of the Board include: coordinating with management in the preparation of the agendas for Board meetings; presiding at Board meetings; between Board meetings, serving as a primary liaison with other Trustees, officers of the Fund, management personnel, and legal counsel to the Independent Trustees; and such other duties as the Board periodically may determine. Mr. Kellerman is deemed to be an interested person of the Fund, as defined by the Investment Company Act, because he is a partner of the Adviser. The designation of an individual as the Chairperson does not impose on such person any duties, obligations, or liabilities greater than the duties, obligations or liabilities on such person as a member of the Board, generally. The Board does not have a lead independent Trustee, although Thomas Bumbolow is the Chairperson of the Nominating and Corporate Governance Committee, which oversees the governance activities of the Board. For the fiscal year ended October 31, 2024, the Board held four (4) meetings (not including committee meetings).

The Board performs many of its oversight and other activities through the committee structure described below. Each Committee operates pursuant to a written charter approved by the Board. The Independent Trustees have engaged independent legal counsel to assist them in performing their oversight responsibilities. The Board believes that its committee structure is an effective means of empowering the Trustees to perform their fiduciary and other duties. For example, the Board's committee structure facilitate, as appropriate, the ability of the individual Board members to receive detailed presentations on topics under their review and to develop increased familiarity with respect to such topics and with key personnel at relevant service providers. At least annually, with guidance from its Nominating and Governance Committee, the Board analyzes whether there are potential means to enhance the efficiency and effectiveness of the Board's operations.

***Audit Committee***. The Board has established an Audit Committee whose functions include, among other things: the appointment, compensation, retention and oversight of the work of the Fund's independent registered accounting firm engaged for the purpose of preparing or issuing an audit report or performing other audit, review or attest services for the Fund. The Audit Committee currently consists of three (3) Independent Trustees. The following Trustees currently serve as members of the Audit Committee: Ms. Caldwell and Messrs. Bumbolow and Desai. Ms. Caldwell currently serves as the Chairperson of the Audit Committee. All Audit Committee members have been designated as Audit Committee Financial Experts under the Sarbanes-Oxley Act of 2002. The Audit Committee held three (3) meetings during the fiscal year ended October 31, 2024.

 ****

***Nominating and Corporate Governance Committee***. The Board has established a Nominating and Corporate Governance Committee (the "Nominating Committee"), whose functions include the following:

1. The Nominating Committee
 will make recommendations for nominations of Independent Trustees of the Board to the incumbent Independent Trustees and to
 the full Board. The Nominating Committee will evaluate candidates' qualifications for Board membership and the independent
 of such candidates from the Adviser and other principal service providers. The Nominating Committee will also consider the
 effect of any relationships beyond those delineated in the Investment Company Act, e.g., business, financial or family relationships
 with investment managers or service providers.

2. The Nominating Committee
 will evaluate candidates' qualifications and make recommendations for Interested Trustees on the Board to the full Board.

3. The Nominating Committee
 may adopt, from time to time, specific minimum qualifications that the Nominating Committee believes a candidate must meet
 before being considered as a candidate for Board membership and shall comply with any rules adopted, from time to time, by
 the SEC regarding investment company nominating committees and the nomination of persons to be considered as candidates for
 Board membership. In considering a candidate's qualifications, the Nominating Committee generally considers the potential
 candidate's educational background, business, professional experience, and reputation.

4. The Nominating Committee
 will review shareholder recommendations for nominations to fill vacancies on the Board if such recommendations are submitted
 in writing and addressed to the Nominating Committee at the Fund's offices. The Nominating Committee will adopt, by
 resolution, a policy regarding its procedures for considering candidates for the Board, including any recommended by shareholders.

The Nominating Committee has established as minimum qualifications for Board membership as an Independent Trustee: (i) that such candidate be an individual possessing high standards of character and integrity, relevant experience, a willingness to ask hard questions and the ability to work well with others; (ii) that such candidate be free of conflicts of interest that would violate applicable law or regulation or interfere with the proper performance of the responsibilities of a Trustee; (iii) that such candidate be willing and able to devote sufficient time to the affairs of the Fund and be diligent in fulfilling the responsibilities of a Trustee; and (iv) that such candidate have the capacity and desire to represent the balanced, and best interests of the Fund's shareholders as a whole, and not a special interest group or constituency.

The following Trustees currently serve as members of the Nominating Committee: Ms. Caldwell and Messrs. Bumbolow and Desai. Mr. Bumbolow currently serves as the Chairperson of the Nominating Committee. The Nominating Committee typically meets at least once per year, and may hold special meetings by telephone or in person to discuss specific matters that may require action prior to the next regular meeting. The Nominating Committee held one (1) meeting during the fiscal year ended October 31, 2024.

The Nominating Committee will consider candidates recommended by shareholders. In considering candidates submitted by shareholders, the Nominating Committee will take into consideration the needs of the Board, the qualifications of the candidate and the interests of the shareholders.

**The Board's Risk Oversight Role**

The Board oversees the risk management function consistent with and as part of its oversight duties. The Board performs this risk management oversight function directly and, with respect to various matters, through its committees. The following description provides an overview of many, but not all, aspects of the Board's oversight of risk management for the Fund. In this connection, the Board has been advised that is not practicable to identify all the risks that may impact the Fund or to develop procedures or controls that are designed to eliminate all such risk exposures, and that applicable securities law regulations do not contemplate that all risks be identified and addressed.

The Board, working with management personnel and other service providers, has endeavored to identify the primary risks that confront the Fund. In general, these risks, include, among others: (i) investment risks; (ii) valuation risks; (iii) operational risks; (iv) reputational risks; (v) regulatory risks; (vi) risks related to potential legislative changes; (vii) the risk of conflicts of interest affecting affiliates in managing the Fund; and (viii) cybersecurity risks. The Board has adopted and periodically reviews various policies and procedures that are designed to address these and other risks confronting the Fund. In addition, many service providers to the Fund have adopted their own policies, procedures, and controls designed to address particular risks to the Fund. The Board and persons retained to render advice and service to the Board, including ALPS Fund Services, Inc., which provides certain administrative, middle office and transfer agency services to the Fund, and Foreside Fund Officer Services, LLC, which provides third-party compliance officer and treasurer services to the Fund, periodically review and/or monitor changes to, and developments relating to, the effectiveness of these policies and procedures.

The Board oversees risk management activities in part through receipt and review by the Board of regular and special reports, presentations and other information from officers of the Fund, including the Chief Compliance Officer for the Fund and the Adviser's Chief Risk Officer, and from other service providers.

**Trustee Share Ownership**

The following table sets forth information regarding each Trustee's beneficial ownership of equity securities of the Fund and the aggregate holdings of share of equity securities of all registered investment companies overseen by each Trustee within the same family of investment companies as the Fund as of December 31, 2024.

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| | | |
|:---|:---|:---|
| **Name of Trustee** | **Fund** | **Aggregate Dollar Range**<br> **of Equity Securities in**<br> **all Registered**<br> **Investment Companies**<br> **Overseen by Trustee in** <br> **Family of**<br> **Investment Companies** |
| **Independent Trustees** | **Independent Trustees** | **Independent Trustees** |
| Karen Caldwell | $0 |  |
| Ketu Desai | $0 |  |
| Anatoly Nakum | $0 |  |
| Thomas Bumbolow | $0 |  |
| **Trustee who is an "Interested Person"** | **Trustee who is an "Interested Person"** | **Trustee who is an "Interested Person"** |
| Andrew Kellerman | $0 |  |

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**Compensation of Trustees**

Each Independent Trustee is compensated for his or her services, on a quarterly basis, according to a fee schedule adopted by the Board. For serving on the Board, each Independent Trustee is paid (effective in 2025) a $30,000 annual retainer fee. Additionally, Ms. Caldwell receives an additional fee of $7,500 per year for her service as Audit Committee Chairperson. Each Trustee is reimbursed for reasonable expenses incurred in connection with each meeting of the Board, Audit Committee or Nominating Committee meetings attended, as applicable. The Board may, from time to time, designate other meetings as subject to compensation.

The following table sets forth the compensation paid to the Trustees by the Fund and the aggregate compensation paid to them by other funds managed by the Adviser and its affiliates for the fiscal year ended October 31, 2024. Mr. Kellerman serves without compensation from the Fund because of his affiliation with the Adviser.

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| | | |
|:---|:---|:---|
| **Name of Trustee** | **Aggregate**<br> **Compensation from the**<br> **Fund** | **Total Compensation**<br> **from the Fund and**<br> **Complex Paid to**<br> **Trustees** |
| Karen Caldwell | $22500 | $45000 |
| Ketu Desai | $15000 | $30000 |
| Thomas Bumbolow | $15000 | $30000 |
| Anatoly Nakum | $15000 | $30000 |
| Andrew Kellerman | $0 | $0 |

---

**Independent Trustee Ownership of Securities**

As of December 31, 2024, none of the Independent Trustees of the Fund or their immediate family members owned beneficially or of record any securities of the Adviser or any person controlling, controlled by or under common control with the Adviser nor did any Independent Trustee of the Fund or their immediate family members have any material interest in any transaction, or series of similar transactions, during the most recently completed two calendar years involving the Fund, the Adviser or any person controlling, controlled by or under common control with the Fund or the Adviser.

As of the date of this SAI, the officers and Trustees of the Fund, as a group, beneficially owned less than 1% of the outstanding common shares of the Fund.

**Information Pertaining to the Officers**

The officers of the Fund are elected by the Board and hold office until their successors are chosen and qualified, or until they sooner resign, are removed, or are otherwise disqualified to serve. The following table provides biographical information about the officers as of the date of this SAI, including their principal occupations during the past five years.

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| | | | |
|:---|:---|:---|:---|
| **Name, Address<sup>(1)</sup>,** <br> **Year of Birth** | **Position(s) Held with Fund** | **Term of Office and Length of Time Served** | **Principal Occupations in the Past 5 Years** |
| Boaz Weinstein<br> (1973) | President | Since May 2021 | CIO of Saba Capital |
| Paul Kazarian<br> (1984) | Chief Executive Officer | Since November 2024 | Portfolio Manager at Saba Capital |
| Michael D'Angelo<br> (1978) | Secretary | Since May 2021 | COO and General Counsel at Saba Capital |
| Patrick Keniston<sup>(2)</sup><br> (1964) | Chief Compliance Officer | Since June 2021 | Managing Director, Foreside Fund Services, LLC |
| Troy Statczar<sup>(2)</sup><br> (1971) | Principal Financial Officer, Treasurer | Since June 2021 | Senior Director, Foreside Treasurer Services |
| Nitin Sapru<br> (1980) | Vice President | Since May 2021 |  |

---

(1) Unless
otherwise indicated, the mailing address for each officer is 405 Lexington Avenue, 58<sup>th</sup> Floor, New York, NY 10174.

(2) Patrick
Keniston's and Troy Statczar's mailing address is Foreside Fund Services, LLC, 3 Canal Plaza, Suite 100, Portland,
ME 04101.

**Portfolio Management**

*Portfolio Manager Assets Under Management*

The following table sets forth information about funds and accounts other than the Fund for which the portfolio managers are primarily responsible for the day-to-day portfolio management as of October 31, 2024:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **(ii) Number of Other Accounts Managed and Assets by Account Type** | **(ii) Number of Other Accounts Managed and Assets by Account Type** | **(ii) Number of Other Accounts Managed and Assets by Account Type** | **(iii) Number of Other Accounts and Assets for**<br> **Which Advisory Fee is**<br> **Performance-Based** | **(iii) Number of Other Accounts and Assets for**<br> **Which Advisory Fee is**<br> **Performance-Based** | **(iii) Number of Other Accounts and Assets for**<br> **Which Advisory Fee is**<br> **Performance-Based** |
| **(i) Name of** <br> **Portfolio Manager** | **Other**<br> **Registered**<br> **Investment**<br> **Companies** | **Other Pooled**<br> **Investment**<br> **Vehicles** | **Other**<br> **Accounts** | **Other**<br> **Registered**<br> **Investment**<br> **Companies** | **Other Pooled**<br> **Investment**<br> **Vehicles** | **Other**<br> **Accounts** |
| Boaz Weinstein | 2 | 13 | 8 | 0 | 13 | 8 |
|  | $497907503 | $3844215019 | $560614855 |  | $3844215019 | $560614855 |
| Paul Kazarian | 2 | 13 | 6 | 0 | 13 | 6 |
|  | $497907503 | $3844215019 | $267135250 |  | $3844215019 | $267135250 |

---

 

*Portfolio Manager Compensation Overview*

The discussion below describes the portfolio managers' compensation as of October 31, 2024.

The portfolio managers are compensated by the Adviser and do not receive any compensation directly from the Fund. Each portfolio manager receives a base salary and, as a partner in the firm, earns profit distributions as well as discretionary bonuses from time to time. The availability and amount of any bonus will be based on factors such as the Adviser's profitability and each portfolio manager's individual performance and team contribution. No portfolio manager is compensated based on Fund performance or on the value of assets held in the Fund's portfolio.

*Securities Ownership of Portfolio Managers*

As of October 31, 2024, the dollar range of securities beneficially owned by each portfolio manager in the Fund is shown below:

---

| | |
|:---|:---|
| **Portfolio Manager** | **Dollar Range of Equity** <br> **Securities of the Trust** <br> **Beneficially Owned** |
| Boaz Weinstein | 0 |
| Paul Kazarian | 0 |

---

**Potential Material Conflicts of Interest**

Certain business activities of the Adviser may lead to potential conflicts of interest. For example, the portfolio managers' management of other accounts may give rise to potential conflicts of interest in connection with the concurrent management of the Fund's investments and the investments of the portfolio managers' other accounts. The other accounts may have similar investment objectives as the Fund. Therefore, a potential conflict of interest may arise as a result of those similar investment objectives, whereby a portfolio manager could favor one account over another. Another potential conflict could include the portfolio managers' knowledge about the size, timing and possible market impact of Fund trades, whereby the portfolio managers could use this information to the advantage of other accounts and to the disadvantage of the Fund. However, the Adviser has established policies and procedures to ensure that the purchase and sale of securities among all accounts managed by the portfolio managers are fairly and equitably allocated. Other present and future activities of the Adviser may give rise to additional conflicts of interest. For example, the investment activities of an account that the Adviser manages, or more generally the activities of the Adviser, may result in another account being required to forgo certain investment or divestment activity or otherwise restrict the ability of the account to engage in certain activities that would not otherwise be prohibited. In the event that a conflict of interest arises, the Adviser will attempt to resolve such conflicts in a fair and equitable manner, as measured over time.

**Proxy Voting Policies**

The Board has delegated the responsibility to vote proxies for securities held in the Fund's portfolio to the Adviser. Proxies for the portfolio securities are voted in accordance with the Adviser's proxy voting policies and procedures, which are set forth in Appendix A to this SAI.

Information on how the Fund voted proxies relating to portfolio securities during the most recent 12-month period ended June 30 is available (i) without charge on the Fund's website at www.sabacef.com and (ii) on the SEC's website at http://www.sec.gov.

**Codes of Ethics**

The Fund and the Adviser have adopted codes of ethics ("Codes of Ethics") pursuant to Rule 17j-1 under the Investment Company Act governing personal trading activities of all Trustees, Officers of the Fund and persons who, in connection with their regular functions, play a role in the recommendation of or obtain information pertaining to any purchase or sale of a security by the Fund. The Codes of Ethics is intended to prohibit fraud against a Fund that may arise from the personal trading of securities that may be purchased or held by that Fund or of the Fund's shares. The Codes of Ethics prohibits short-term trading of the Fund's shares by persons subject to the Codes of Ethics. Personal trading is permitted by such persons subject to certain restrictions; however, such persons are generally required to pre-clear all security transactions with the Adviser or its affiliates and to report all transactions on a regular basis.

The Codes of Ethics is available on the SEC's website at www.sec.gov and copies may also be obtained at prescribed rates by electronic request at publicinfo@sec.gov.

**PORTFOLIO TRANSACTIONS AND BROKERAGE**

The policy of the Fund regarding purchases and sales of securities of the Fund is that primary consideration will be given to obtaining the most favorable prices and efficient executions of transactions. Consistent with this policy, when securities transactions are effected on a stock exchange, the Fund's policy is to pay commissions which are considered fair and reasonable without necessarily determining that the lowest possible commissions are paid in all circumstances. The Fund believes that a requirement always to seek the lowest possible commission cost could impede effective portfolio management and preclude the Fund and the Adviser from obtaining a high quality of brokerage and research services. In seeking to determine the reasonableness of brokerage commissions paid in any transaction, the Adviser will rely upon its experience and knowledge regarding commissions generally charged by various brokers and on its judgment in evaluating the brokerage services received from the broker effecting the transaction. Such determinations are necessarily subjective and imprecise, as in most cases, an exact dollar value for those services is not ascertainable. The Fund has adopted policies and procedures that prohibit the consideration of sales of the Fund's shares as a factor in the selection of a broker or dealer to execute its portfolio transactions.

The Adviser owes a fiduciary duty to its clients to seek to provide best execution on trades effected. In selecting a broker or dealer for each specific transaction, the Adviser chooses the broker/dealer deemed most capable of providing the services necessary to obtain the most favorable execution. Best execution is generally understood to mean the most favorable cost or net proceeds reasonably obtainable under the circumstances. The full range of brokerage services applicable to a particular transaction may be considered when making this judgment, which may include, but is not limited to: liquidity, price, commission, timing, aggregated trades, capable floor brokers or traders, competent block trading coverage, ability to position, capital strength and stability, reliable and accurate communications and settlement processing, use of automation, knowledge of other buyers or sellers, arbitrage skills, administrative ability, underwriting and provision of information on a particular security or market in which the transaction is to occur. The specific criteria will vary depending upon the nature of the transaction, the market in which it is executed, and the extent to which it is possible to select from among multiple brokers or dealers. The Adviser may also use electronic crossing networks ("ECNs") when appropriate.

The Adviser may use the Fund's assets for, or participate in, third-party soft dollar arrangements, in addition to receiving proprietary research from various full service brokers, the cost of which is bundled with the cost of the broker's execution services. The Adviser does not "pay up" for the value of any such proprietary research. Section 28(e) of the Exchange Act permits the Adviser, under certain circumstances, to cause the Fund to pay a broker or dealer a commission for effecting a transaction in excess of the amount of commission another broker or dealer would have charged for effecting the transaction in recognition of the value of brokerage and research services provided by the broker or dealer. The Adviser may receive a variety of research services and information on many topics, which it can use in connection with its management responsibilities with respect to the various accounts over which it exercises investment discretion or otherwise provides investment advice. The research services may include qualifying order management systems, portfolio attribution and monitoring services and computer software and access charges which are directly related to investment research. Accordingly, the Fund may pay a broker commission higher than the lowest available in recognition of the broker's provision of such services to the Adviser, but only if the Adviser determines the total commission (including the soft dollar benefit) is comparable to the best commission rate that could be expected to be received from other brokers. The amount of soft dollar benefits received depends on the amount of brokerage transactions effected with the brokers. A conflict of interest exists because there is an incentive to: (1) cause clients to paya higher commission than the firm might otherwise be able to negotiate; (2) cause clients to engage in more securities transactions than would otherwise be optimal; and (3) only recommend brokers that provide soft dollar benefits.

The Adviser faces a potential conflict of interest when it uses client trades to obtain brokerage or research services. This conflict exists because the Adviser is able to use the brokerage or research services to manage client accounts without paying cash for such services, which reduces the Adviser's expenses to the extent that the Adviser would have purchased such products had they not been provided by brokers. Section 28(e) permits the Adviser to use brokerage or research services for the benefit of any account it manages. Certain accounts managed by the Adviser may generate soft dollars used to purchase brokerage or research services that ultimately benefit other accounts managed by the Adviser, effectively cross-subsidizing the other accounts managed by the Adviser that benefit directly from the product. The Adviser may not necessarily use all of the brokerage or research services in connection with managing the Fund whose trades generated the soft dollars used to purchase such products.

The Adviser is responsible for placing orders on behalf of the Fund for the purchase or sale of portfolio securities. If purchases or sales of portfolio securities of the Fund and one or more other investment companies or clients supervised by the Adviser are considered at or about the same time, transactions in such securities are allocated among the several investment companies and clients in a manner deemed equitable and consistent with its fiduciary obligations to all by the Adviser. In some cases, this procedure could have a detrimental effect on the price or volume of the security so far as the Fund is concerned. However, in other cases, it is possible that the ability to participate in volume transactions and to negotiate lower brokerage commissions will be beneficial to the Fund. The primary consideration is prompt execution of orders at the most favorable net price.

The Fund may deal with affiliates in principal transactions to the extent permitted by exemptive order or applicable rule or regulation.

Information about the brokerage commissions paid by the Fund, including commissions paid to affiliates, for the last three fiscal years, is set forth in the following table:

---

| | | |
|:---|:---|:---|
| **Fiscal Year Ended** | **Aggregate**<br> **Brokerage**<br> **Commissions**<br> **Paid** | **Commissions**<br> **Paid to**<br> **Affiliates** |
| October 31, 2024 | $120257 | $0 |
| October 31, 2023 | $162579 | $0 |
| October 31, 2022 | $260239 | $0 |

---

For the fiscal year ended October 31, 2024, the brokerage commissions paid to affiliates by the Fund represented 0% of the aggregate brokerage commissions paid and involved 0% of the dollar amount of transactions involving payment of commissions during the year.

The following table shows the dollar amount of brokerage commissions paid to brokers for providing third-party research services and the approximate dollar amount of the transactions involved for the fiscal year ended October 31, 2024. The provision of third-party research services was not necessarily a factor in the placement of all brokerage business with such brokers.

---

| | |
|:---|:---|
| **Amount of Commissions Paid to Brokers for**<br> **Providing Research Services** | **Amount of Brokerage Transactions Involved** |
| $0 | $0 |

---

As of October 31, 2024, the Fund did not hold securities of its "regular brokers or dealers" (as defined in Rule 10b-1 under the Investment Company Act) whose shares were purchased during the fiscal year ended October 31, 2024.**..**

**PORTFOLIO TURNOVER RATE**

Portfolio turnover may vary from year to year, as well as within a year. The portfolio turnover rates for the specified periods are set forth in the table below. Significant variations in portfolio turnover from year-to-year are generally the result of fluctuations in the size of the Fund or changes to the Fund's portfolio holdings.

---

| | |
|:---|:---|
| **Fiscal Year Ended October 31, 2024** | **Fiscal Year Ended October 31, 2023** |
| 129.43% | 76.16% |

---

**CONFLICTS OF INTEREST**

*Certain activities of the Adviser and its directors, officers or employees, with respect to the Fund and/or other accounts managed by the Adviser, may give rise to actual or perceived conflicts of interest such as those described below.* 

The Adviser, its personnel and its affiliates, serve as investment advisers, management companies, general partners, managing members, and/or special shareholders to multiple clients. The Adviser will devote as much of its time to the activities of each of its clients as it deems necessary and appropriate. The Adviser is not restricted from forming additional investment funds, from entering into other investment advisory or sub-advisory relationships or from engaging in other business activities, even though such activities may be in direct competition with existing clients, including the Fund, and may involve substantial time and resources of the Adviser. These activities could be viewed as creating a conflict of interest in that the time and effort of the members and partners of the Adviser and its officers and employees will not be devoted exclusively to the business of the Fund, but will be allocated between the business of the Fund and the management of the monies of other advisees of the Adviser.

Certain business activities of the Adviser may lead to potential conflicts of interest. The management of multiple clients may give rise to potential conflicts of interest in connection with the concurrent management of the investments for the Fund and the investments in other clients of the Adviser. For example, a potential conflict of interest may arise as a result of clients with similar investment objectives, whereby the Adviser could favor one account over another. Another potential conflict could include the Adviser's knowledge about the size, timing and possible market impact of certain trades, whereby the Adviser could use this information to the advantage of other accounts and to the disadvantage of the Fund. However, the Adviser has established policies and procedures to ensure that the purchase and sale of securities among all accounts managed by the Adviser are fairly and equitably allocated. Other present and future activities of the Adviser may give rise to additional conflicts of interest. For example, the investment activities of an account that the Adviser manages, or more generally the activities of the Adviser, may result in the Fund being required to forgo certain investment or divestment activity or otherwise restrict the ability of the Fund to engage in certain activities that would not otherwise be prohibited. In the event that a conflict of interest arises, the Adviser will attempt to resolve such conflicts in a fair and equitable manner, as measured over time.

Certain employees of the Adviser currently serve as directors or advisory board members of portfolio companies or other entities, and will continue to do so in the future. In connection with such services, the Adviser or its employees may either receive directors' fees or other similar compensation attributable to such employees' services or waive such fees. If the Adviser receives any such fees or compensation with such employees providing services to one or more portfolio companies in which its clients invests, all of such fees or compensation ratably attributable to the clients' investments in such portfolio companies (net of taxes and other expenses related thereto) will be applied as an offset to the management fee on a dollar-for-dollar basis. Such amounts are not expected to be material. Employees of the Adviser must have such arrangements pre-approved by its Chief Compliance Officer ("CCO"). Similarly, employees are required to seek pre-approval from the CCO and their relevant supervisor prior to serving as a director of any company, or engaging in any similar outside business activities that are not related to an investment by the clients.

The Adviser, from time to time, engages service providers on behalf of itself and/or its clients in which certain clients, partners, directors, officers, consultants deemed by compliance to be access persons, and employees of the Adviser (together, the "Employees"), affiliates, and/or other personnel of the Adviser have a financial interest in, participate in the management of, and/or serve on the advisory board of such service providers (each, an "Affiliated Service Provider"). Clients engaging an Affiliated Service Provider are expected to bear the Affiliated Service Provider's fees, terms and conditions, and expenses (including with respect to terms and compensation), which are expected to be competitive, when taken as a whole, with the compensation paid to, quality and quantity of the service provided by, and terms and conditions of the engagement with third parties for comparable services that could reasonably be made available to such clients. No management fee or expense offset is expected to be applied to the Affiliated Service Provider for such services. The Adviser may be viewed as having an incentive to direct clients, including the Fund, to engage the Affiliated Service Provider because of the financial or other business interests of certain clients, Employees, affiliates and/or other personnel of the Adviser. The Adviser seeks to mitigate any such conflict by, among other things, periodically evaluating as a whole, using commercially reasonable means, the pricing of, quality and quantity of the services provided by, and terms and conditions of engagements with alternative unaffiliated service providers.

The Adviser will provide discretionary and may provide non-discretionary investment management services to other clients, as well as managed accounts and other investment partnerships or funds, which may have similar investment objectives to those of the Fund. The Adviser has in the past, and will in the future, give advice and recommend securities to other clients which may differ from advice given to, or securities recommended or bought for, the Fund, even though their investment objectives may be the same or similar to those of the Fund. The Fund, for example, may make an investment at the same time that one or more of the other accounts managed by the Adviser is disposing of the same or a similar investment. Likewise, the Fund may make an investment in a position which is already held by one or more of the other accounts managed by the Adviser. It is possible that the activities or strategies used for the other accounts could conflict with the activities and strategies employed in managing the assets of the Fund and affect the prices and availability of the securities and instruments in which the Fund invests. Decisions about what action should be taken in a troubled situation, raise conflicts of interest. If additional capital is necessary as a result of financial or other difficulties, other accounts may or may not provide such additional capital as each determines in their sole discretion. The Adviser will seek to resolve such conflicts of interest in a fair and equitable manner.

The Adviser has applied for an exemptive order from the SEC (the "Order") that would grant the funds managed by the Adviser or certain affiliates, the ability to fully negotiate terms of co-investment transactions with other funds managed by the Adviser or certain affiliates, subject to the conditions included therein. Until the Adviser receives the Order, the Fund will not be permitted to participate in certain investments with the Adviser's other funds or its affiliates. Even if the Order is granted, in certain situations, such as when there is an opportunity to invest in different securities of the same issuer, the personnel of the Adviser or its affiliates will need to decide which client will proceed with the investment. Such personnel will make these determinations based on policies and procedures, which are designed to reasonably ensure that investment opportunities are allocated fairly and equitably among affiliated funds over time and in a manner that is consistent with applicable laws, rules and regulations. When the Fund participates in a co-investment transaction, the personnel of the Adviser allocates a portion of the investment to the Fund based on the Fund's investment objective and strategies, investment policies, investment positions, capital available for investment, and other pertinent factors. Any co-investment is made on equal footing with the funds managed by the Adviser or its affiliates, including identical terms, conditions, price, class of securities purchased, timing, and registration rights. In addition, a majority of the Independent Trustees generally must make certain conclusions in connection with a co-investment transaction, including that (1) the terms of the proposed transaction, including the consideration to be paid, are reasonable and fair to the Fund and its shareholders and do not involve overreaching of the Fund or its shareholders on the part of any person concerned and (2) the transaction is consistent with the interests of the Fund's shareholders and is consistent with the Fund's investment objective and strategies. To the extent the Fund is able to make co-investments with the Adviser's affiliates, these co-investment transactions may give rise to conflicts of interest or perceived conflicts of interest among the Fund and the other participating accounts. Moreover, except in certain circumstances, when relying on the Order, the Fund is unable to invest in any issuer in which one or more funds managed by the Adviser or its affiliates has previously invested.

The Fund may also invest alongside the Adviser's and its affiliates' other clients, including other entities they manage, which are referred to as affiliates' other clients, in certain circumstances where doing so is consistent with applicable law and SEC staff interpretations and guidance as well as the Adviser's allocation policies. However, the Fund can offer no assurance that investment opportunities will be allocated to it fairly or equitably in the short-term or over time.

In situations where co-investment with affiliates' other clients is not permitted under the Investment Company Act and related rules, existing or future staff guidance, or the terms and conditions of any exemptive relief granted to the Fund by the SEC, the Adviser will need to decide which client or clients will proceed with the investment. Generally, the Fund will not have an entitlement to make a co-investment in these circumstances and, to the extent that another client elects to proceed with the investment, the Fund will not be permitted to participate. Moreover, except in certain circumstances, the Fund is unable to invest in any issuer in which an affiliates' other client holds a controlling interest. These restrictions may limit the scope of investment opportunities that would otherwise be available to the Fund.

From time to time, the Adviser and/or one or more of its affiliates have in the past, and may in the future, come into possession of material, non-public information, and such information may limit the ability of the Fund to buy and sell investments, even if such information was obtained in the context of the investment activities of other accounts. The Fund will not be free to act upon any such information. Due to these restrictions and/or contractual restrictions imposed on any affiliate of the Adviser in connection with the management of other accounts, the Fund may not be able to initiate a transaction that they otherwise might have initiated and may not be able to sell an investment that they otherwise might have sold. Orders may be combined for all such accounts, and if any order is not filled at the same price, they may be allocated on an average price basis. Similarly, if an order on behalf of more than one account cannot be fully executed under prevailing market conditions, securities may be allocated among the different accounts on a basis which the Adviser considers equitable.

During periods in which the assets of the Fund are not treated as "plan assets" for purposes of the Employee Retirement Income Security Act of 1973, the Adviser may determine that it would not be in the best interests of the Fund and one or more funds and investment accounts managed by the Adviser to transfer certain assets held by one or more such funds and investment accounts managed by the Adviser to other funds and investment accounts managed by the Adviser, including for the purpose of rebalancing portfolios of such funds and investment accounts. For example, certain "cross" trades may occur between clients as may be necessary to rebalance cash or various portfolio positions. Such transactions will be conducted in accordance with, and subject to, the Adviser's fiduciary obligations to the Fund.

Other present and future activities of the Adviser may give rise to additional conflicts of interest. In the event that a conflict of interest arises, the Adviser will attempt to resolve such conflicts in a fair and equitable manner.

**DESCRIPTION OF SHARES**

**Common Shares**

The Fund intends to hold annual meetings of shareholders so long as the common shares are listed on a national securities exchange and such meetings are required as a condition to such listing.

**Preferred Shares**

The Fund currently does not intend to issue preferred shares. The terms of any preferred shares that the Fund might issue in the future, including dividend rate, liquidation preference and redemption provisions, will be determined by the Board, subject to applicable law and the Declaration of Trust. The Board, without the approval of the holders of common shares, may authorize an offering of preferred shares or may determine not to authorize such an offering, and may fix the terms of the preferred shares to be offered.

**Other Shares**

The Board (subject to applicable law and the Declaration of Trust) may authorize an offering, without the approval of the holders of common shares and, depending on their terms, any preferred shares outstanding at that time, of other classes of shares, or other classes or series of shares, as they determine to be necessary, desirable or appropriate, having such terms, rights, preferences, privileges, limitations and restrictions as the Board sees fit. The Board currently does not expect to issue any other classes of shares, or series of shares, except for the common shares.

**REPURCHASE OF COMMON SHARES**

The Board has approved an open market share repurchase program to authorize the Fund to purchase up to 10% of the Fund's common shares for the fiscal year in open market transactions, at the discretion of the Adviser. The share repurchase program is intended to increase the Fund's NAV to the benefit of all shareholders and help create further value for shareholders by reducing the Fund's discount to NAV.

Subject to the 10% limitation in a fiscal year, the timing and amount of repurchases will be at the discretion of the Adviser. In exercising its discretion consistent with its portfolio management responsibilities, the Adviser will take into account various other factors, including, but not limited to, the level of discount, the Fund's performance, portfolio holdings, dividend history, market conditions, cash on hand, the availability of other attractive investments, and whether the sale of certain portfolio securities would be undesirable because of liquidity concerns or because the sale might subject the Fund to adverse tax consequences. Any repurchases would be made on a national securities exchange at the prevailing market price, subject to exchange requirements, federal securities laws and rules that restrict repurchases. If and when the Fund's 10% threshold is reached for a fiscal year, no further repurchases will be made (unless otherwise authorized by the Board) for such fiscal year. The share repurchase program will require reauthorization by the Board for each new fiscal year. Until the 10% threshold in a fiscal year is reached, the Adviser will have the flexibility to commence share repurchases if and when it is determined to be appropriate in light of prevailing circumstances.

**TAX MATTERS**

The following is a description of certain U.S. federal income tax consequences to a shareholder of acquiring, holding and disposing of common shares of the Fund. Except as otherwise noted, this discussion assumes you are a taxable U.S. holder (as defined below). This discussion is based upon current provisions of the Internal Revenue Code of 1986, as amended (the "Code"), the regulations promulgated thereunder and judicial and administrative authorities, all of which are subject to change or differing interpretations by the courts or the Internal Revenue Service, possibly with retroactive effect. No attempt is made to present a detailed explanation of all U.S. federal income tax concerns affecting the Fund and its shareholders, and the discussions set forth here do not constitute tax advice. This discussion assumes that investors hold common shares of the Fund as capital assets for U.S. federal income tax purposes (generally, assets held for investment). The Fund has not sought and will not seek any ruling from the Internal Revenue Service regarding any matters discussed herein. No assurance can be given that the Internal Revenue Service would not assert, or that a court would not sustain, a position contrary to those set forth below. This summary does not discuss any aspects of non-U.S., state or local tax. Prospective investors must consult their own tax advisers as to the U.S. federal income tax consequences (including the alternative minimum tax consequences) of acquiring, holding and disposing of the Fund's common shares, as well as the effects of state, local and non-U.S. tax laws.

In addition, no attempt is made to address tax considerations applicable to an investor with a special tax status, such as a financial institution, REIT, insurance company, regulated investment company, individual retirement account, other tax-exempt organization, dealer in securities or currencies, person holding shares of the Fund as part of a hedging, integrated, conversion or straddle transaction, trader in securities that has elected the mark-to-market method of accounting for its securities, U.S. holder (as defined below) whose functional currency is not the U.S. dollar, investor with "applicable financial statements" within the meaning of Section 451(b) of the Code, or non-U.S. investor. Furthermore, this discussion does not reflect possible application of the alternative minimum tax.

A U.S. holder is a beneficial owner that is for U.S. federal income tax purposes:

(i) a citizen or individual
 resident of the United States (including certain former citizens and former long-term residents);

(ii) a corporation or
 other entity treated as a corporation for U.S. federal income tax purposes, created or organized in or under the laws of the
 United States or any state thereof or the District of Columbia;

(iii) an estate, the income
 of which is subject to U.S. federal income taxation regardless of its source; or

(iv) a trust with respect
 to which a court within the United States is able to exercise primary supervision over its administration and one or more
 U.S. persons have the authority to control all of its substantial decisions or the trust has made a valid election in effect
 under applicable Treasury regulations to be treated as a U.S. person for U.S. federal income tax purposes, whose status as
 a U.S. person is not overridden by an applicable tax treaty.

**Taxation of the Fund**

The Fund intends to elect to be treated and to qualify to be taxed as a RIC under Subchapter M of the Code. In order to qualify as a RIC, the Fund must, among other things, satisfy certain requirements relating to the sources of its income, diversification of its assets, and distribution of its income to its shareholders. First, the Fund must derive at least 90% of its annual gross income from dividends, interest, payments with respect to securities loans, gains from the sale or other disposition of stock or securities or foreign currencies, or other income (including but not limited to gains from options, futures and forward contracts) derived with respect to its business of investing in such stock, securities or currencies, or net income derived from interests in "qualified publicly traded partnerships" (as defined in the Code) (the "90% gross income test"). Second, the Fund must diversify its holdings so that, at the close of each quarter of its taxable year, (i) at least 50% of the value of its total assets consists of cash, cash items, U.S. Government securities, securities of other RICs and other securities, with such other securities limited in respect of any one issuer to an amount not greater in value than 5% of the value of the Fund's total assets and to not more than 10% of the outstanding voting securities of such issuer, and (ii) not more than 25% of the market value of the total assets is invested in the securities (other than U.S. Government securities and securities of other RICs) of any one issuer, any two or more issuers controlled by the Fund and engaged in the same, similar or related trades or businesses, or any one or more "qualified publicly traded partnerships."

As long as the Fund qualifies as a RIC, the Fund will generally not be subject to corporate-level U.S. federal income tax on income and gains that it distributes each taxable year to its shareholders, provided that in such taxable year it distributes at least 90% of the sum of (i) its net tax-exempt interest income, if any, and (ii) its "investment company taxable income" (which includes, among other items, dividends, taxable interest, taxable original issue discount and market discount income, income from securities lending, net short-term capital gain in excess of net long-term capital loss, and any other taxable income other than "net capital gain" (as defined below) and is reduced by deductible expenses) determined without regard to the deduction for dividends paid. The Fund may retain for investment its net capital gain (which consists of the excess of its net long-term capital gain over its net short-term capital loss). However, if the Fund retains any net capital gain or any investment company taxable income, it will be subject to tax at regular corporate rates on the amount retained.

The Code imposes a 4% nondeductible excise tax on the Fund to the extent the Fund does not distribute by the end of any calendar year at least the sum of (i) 98% of its ordinary income (not taking into account any capital gain or loss) for the calendar year and (ii) 98.2% of its capital gain in excess of its capital loss (adjusted for certain ordinary losses) for a one-year period generally ending on October 31 of the calendar year (unless an election is made to use the Fund's fiscal year, which ends on October 31). In addition, the minimum amounts that must be distributed in any year to avoid the excise tax will be increased or decreased to reflect any under-distribution or over-distribution, as the case may be, from the previous year. For purposes of the excise tax, the Fund will be deemed to have distributed any income on which it paid U.S. federal income tax. While the Fund intends to distribute any income and capital gain in the manner necessary to minimize imposition of the 4% nondeductible excise tax, there can be no assurance that sufficient amounts of the Fund's taxable income and capital gain will be distributed to entirely avoid the imposition of the excise tax. In that event, the Fund will be liable for the excise tax only on the amount by which it does not meet the foregoing distribution requirement.

If in any taxable year the Fund should fail to qualify under Subchapter M of the Code for tax treatment as a RIC, the Fund would incur a regular corporate U.S. federal income tax upon all of its taxable income for that year, and all distributions to its shareholders (including distributions of net capital gain) would be taxable to shareholders as ordinary dividend income for U.S. federal income tax purposes to the extent of the Fund's earnings and profits. Provided that certain holding period and other requirements were met, such dividends would be eligible (i) to be treated as qualified dividend income in the case of shareholders taxed as individuals and (ii) for the dividends received deduction in the case of corporate shareholders. In addition, to qualify again to be taxed as a RIC in a subsequent year, the Fund would be required to distribute to shareholders its earnings and profits attributable to non-RIC years. In addition, if the Fund failed to qualify as a RIC for a period greater than two taxable years, then, in order to qualify as a RIC in a subsequent year, the Fund would be required to elect to recognize and pay tax on any net built-in gain (the excess of aggregate gain, including items of income, over aggregate loss that would have been realized if the Fund had been liquidated) or, alternatively, be subject to taxation on such built-in gain recognized for a period of five years.

The remainder of this discussion assumes that the Fund qualifies for taxation as a RIC.

**The Fund's Investments**

Certain of the Fund's investment practices are subject to special and complex U.S. federal income tax provisions (including mark-to-market, constructive sale, straddle, wash sale, short sale and other rules) that may, among other things, (i) disallow, suspend or otherwise limit the allowance of certain losses or deductions, (ii) convert lower taxed long-term capital gains or qualified dividend income into higher taxed short-term capital gains or ordinary income, (iii) convert ordinary loss or a deduction into capital loss (the deductibility of which is more limited), (iv) cause the Fund to recognize income or gain without a corresponding receipt of cash, (v) adversely affect the time as to when a purchase or sale of stock or securities is deemed to occur, (vi) adversely alter the characterization of certain complex financial transactions and (vii) produce income that will not be "qualified" income for purposes of the 90% annual gross income requirement described above. These U.S. federal income tax provisions could therefore affect the amount, timing and character of distributions to common shareholders. The Fund intends to monitor its transactions and may make certain tax elections and may be required to dispose of securities to mitigate the effect of these provisions and prevent disqualification of the Fund as a RIC. Additionally, the Fund may be required to limit its activities in derivative instruments in order to enable it to maintain its RIC status.

The Fund may invest a portion of its net assets in below investment grade securities, commonly known as "junk" securities. Investments in these types of securities may present special tax issues for the Fund. U.S. federal income tax rules are not entirely clear about issues such as when the Fund may cease to accrue interest, original issue discount or market discount, when and to what extent deductions may be taken for bad debts or worthless securities, how payments received on obligations in default should be allocated between principal and income and whether modifications or exchanges of debt obligations in a bankruptcy or workout context are taxable. These and other issues could affect the Fund's ability to distribute sufficient income to preserve its status as a RIC or to avoid the imposition of U.S. federal income or excise tax.

Certain debt securities acquired by the Fund may be treated as debt securities that were originally issued at a discount. Generally, the amount of the original issue discount is treated as interest income and is included in taxable income (and required to be distributed by the Fund in order to qualify as a RIC and avoid U.S. federal income tax or the 4% excise tax on undistributed income) over the term of the security, even though payment of that amount is not received until a later time, usually when the debt security matures.

If the Fund purchases a debt security on a secondary market at a price lower than its adjusted issue price, the excess of the adjusted issue price over the purchase price is "market discount." Unless the Fund makes an election to accrue market discount on a current basis, generally, any gain realized on the disposition of, and any partial payment of principal on, a debt security having market discount is treated as ordinary income to the extent the gain, or principal payment, does not exceed the "accrued market discount" on the debt security. Market discount generally accrues in equal daily installments. If the Fund ultimately collects less on the debt instrument than its purchase price plus the market discount previously included in income, the Fund may not be able to benefit from any offsetting loss deductions.

The Fund may invest in preferred securities or other securities the U.S. federal income tax treatment of which may not be clear or may be subject to recharacterization by the Internal Revenue Service. To the extent the tax treatment of such securities or the income from such securities differs from the tax treatment expected by the Fund, it could affect the timing or character of income recognized by the Fund, potentially requiring the Fund to purchase or sell securities, or otherwise change its portfolio, in order to comply with the tax rules applicable to RICs under the Code.

Gain or loss on the sale of securities by the Fund will generally be long-term capital gain or loss if the securities have been held by the Fund for more than one year. Gain or loss on the sale of securities held for one year or less will be short-term capital gain or loss.

Because the Fund may invest in foreign securities, its income from such securities may be subject to non-U.S. taxes.

Foreign currency gain or loss on foreign currency exchange contracts, non-U.S. dollar-denominated securities contracts, and non-U.S. dollar-denominated futures contracts, options and forward contracts that are not section 1256 contracts (as defined below) generally will be treated as ordinary income and loss.

Income from options on individual securities written by the Fund will generally not be recognized by the Fund for tax purposes until an option is exercised, lapses or is subject to a "closing transaction" (as defined by applicable regulations) pursuant to which the Fund's obligations with respect to the option are otherwise terminated. If the option lapses without exercise, the premiums received by the Fund from the writing of such options will generally be characterized as short-term capital gain. If the Fund enters into a closing transaction, the difference between the premiums received and the amount paid by the Fund to close out its position will generally be treated as short-term capital gain or loss. If an option written by the Fund is exercised, thereby requiring the Fund to sell the underlying security, the premium will increase the amount realized upon the sale of the security, and the character of any gain on such sale of the underlying security as short-term or long-term capital gain will depend on the holding period of the Fund in the underlying security. Because the Fund will not have control over the exercise of the options it writes, such exercises or other required sales of the underlying securities may cause the Fund to realize gains or losses at inopportune times.

Options on indices of securities and sectors of securities that qualify as "section 1256 contracts" will generally be "marked-to-market" for U.S. federal income tax purposes. As a result, the Fund will generally recognize gain or loss on the last day of each taxable year equal to the difference between the value of the option on that date and the adjusted basis of the option. The adjusted basis of the option will consequently be increased by such gain or decreased by such loss. Any gain or loss with respect to options on indices and sectors that qualify as "section 1256 contracts" will be treated as short-term capital gain or loss to the extent of 40% of such gain or loss and long-term capital gain or loss to the extent of 60% of such gain or loss. Because the mark-to-market rules may cause the Fund to recognize gain in advance of the receipt of cash, the Fund may be required to dispose of investments in order to meet its distribution requirements. "Mark-to-market" losses may be suspended or otherwise limited if such losses are part of a straddle or similar transaction.

**Taxation of Common Shareholders**

Fund distributions of its tax-exempt interest on municipal securities, if properly reported by the Fund to its shareholders ("exempt-interest dividends"), will generally be exempt from regular federal income tax. In order for the Fund to pay exempt-interest dividends, at least 50% of the value of the Fund's total assets must consist of tax-exempt obligations on a quarterly basis. Although the Fund intends to meet this requirement, no assurance can be given in this regard. If the Fund failed to do so, it would not be able to pay tax-exempt dividends, and your distributions attributable to interest received by the Fund from any source (including distributions of tax-exempt interest income) would be taxable as ordinary income to the extent of the Fund's earnings and profits.

The Fund will either distribute or retain for reinvestment all or part of its net capital gain. If any such gain is retained, the Fund will be subject to a corporate income tax on such retained amount. In that event, the Fund expects to report the retained amount as undistributed capital gain in a notice to its common shareholders, each of whom, if subject to U.S. federal income tax on long-term capital gains, (i) will be required to include in income for U.S. federal income tax purposes as long-term capital gain its share of such undistributed amounts, (ii) will be entitled to credit its proportionate share of the tax paid by the Fund against its U.S. federal income tax liability and to claim refunds to the extent that the credit exceeds such liability and (iii) will increase its basis in its common shares by the amount of undistributed capital gains included in the shareholder's income less the tax deemed paid by the shareholder under clause (ii).

Distributions paid to you by the Fund from its net capital gain, if any, that the Fund properly reports as capital gain dividends ("capital gain dividends") are taxable as long-term capital gains, regardless of how long you have held your common shares. All other dividends paid to you by the Fund (including dividends from net short-term capital gains) from its current or accumulated earnings and profits, other than exempt-interest dividends ("ordinary income dividends"), are generally subject to tax as ordinary income. Provided that certain holding period and other requirements are met, ordinary income dividends (if properly reported by the Fund) may qualify (i) for the dividends received deduction in the case of corporate shareholders to the extent that the Fund's income consists of dividend income from U.S. corporations, and (ii) in the case of individual shareholders, as "qualified dividend income" eligible to be taxed at long-term capital gains rates to the extent that the Fund receives qualified dividend income. Qualified dividend income is, in general, dividend income from taxable domestic corporations and certain qualified foreign corporations (e.g., generally, foreign corporations incorporated in a possession of the United States or in certain countries with a qualifying comprehensive tax treaty with the United States, or whose stock with respect to which such dividend is paid is readily tradable on an established securities market in the United States). There can be no assurance as to what portion, if any, of the Fund's distributions will constitute qualified dividend income or be eligible for the dividends received deduction.

Any distributions you receive that are in excess of the Fund's current and accumulated earnings and profits will be treated as a return of capital to the extent of your adjusted tax basis in your common shares, and thereafter as capital gain from the sale of common shares. The amount of any Fund distribution that is treated as a return of capital will reduce your adjusted tax basis in your common shares, thereby increasing your potential gain or reducing your potential loss on any subsequent sale or other disposition of your common shares.

Common shareholders may be entitled to offset their capital gain dividends with capital losses. The Code contains a number of statutory provisions affecting when capital losses may be offset against capital gain, and limiting the use of losses from certain investments and activities. Accordingly, common shareholders that have capital losses are urged to consult their tax advisers.

Dividends and other taxable distributions are taxable to you even though they are reinvested in additional common shares of the Fund. Dividends and other distributions paid by the Fund are generally treated under the Code as received by you at the time the dividend or distribution is made. If, however, the Fund pays you a dividend in the first month of the taxable year that was declared sometime in the last three months of the previous taxable year to common shareholders of record on a specified date in one of such months, then such dividend will be treated for U.S. federal income tax purposes as being paid by the Fund and received by you on the last day of the taxable year in which the dividend was declared. In addition, certain other distributions made after the close of the Fund's taxable year may be "spilled back" and treated as paid by the Fund (except for purposes of the 4% nondeductible excise tax) during such taxable year. In such case, you will be treated as having received such dividends in the taxable year in which the distributions were actually made.

Interest on certain "private activity bonds" is an item of tax preference subject to the alternative minimum tax on individuals. The Fund may invest a portion of its assets in municipal bonds subject to this provision so that a portion of its exempt-interest dividends is an item of tax preference to the extent such dividends represent interest received from these private activity bonds. Accordingly, investment in the Fund could cause a holder of common shares to be subject to, or result in an increased liability under, the alternative minimum tax.

Exempt-interest dividends are included in determining what portion, if any, of a person's Social Security and railroad retirement benefits will be includable in gross income subject to federal income tax.

The price of common shares purchased at any time may reflect the amount of a forthcoming distribution. Those purchasing common shares just prior to the record date for a distribution will receive a distribution which will be taxable to them even though it represents, economically, a return of invested capital.

The Fund will send you information after the end of each year setting forth the amount and tax status of any distributions paid to you by the Fund.

The sale or other disposition of common shares will generally result in capital gain or loss to you and will be long-term capital gain or loss if you have held such common shares for more than one year at the time of sale. Any loss upon the sale or other disposition of common shares held for six months or less will be treated as long-term capital loss to the extent of any capital gain dividends received (including amounts credited as an undistributed capital gain dividend) by you with respect to such common shares. Any loss you recognize on a sale or other disposition of common shares will be disallowed if you acquire other common shares (whether through the automatic reinvestment of dividends or otherwise) within a 61-day period beginning 30 days before and ending 30 days after your sale or exchange of the common shares. In such case, your tax basis in the common shares acquired will be adjusted to reflect the disallowed loss.

If the Fund conducts a tender offer for its shares, a repurchase by the Fund of a shareholder's shares pursuant to such tender offer generally will be treated as a sale or exchange of the shares by a shareholder provided that either (i) the shareholder tenders, and the Fund repurchases, all of such shareholder's shares, thereby reducing the shareholder's percentage ownership of the Fund, whether directly or by attribution under Section 318 of the Code, to 0%, (ii) the shareholder meets numerical safe harbors under the Code with respect to percentage voting interest and reduction in ownership of the Fund following completion of the tender offer, or (iii) the tender offer otherwise results in a "meaningful reduction" of the shareholder's ownership percentage interest in the Fund, which determination depends on a particular shareholder's facts and circumstances.

If a tendering shareholder's proportionate ownership of the Fund (determined after applying the ownership attribution rules under Section 318 of the Code) is not reduced to the extent required under the tests described above, such shareholder will be deemed to receive a distribution from the Fund under Section 301 of the Code with respect to the shares held (or deemed held under Section 318 of the Code) by the shareholder after the tender offer (a "Section 301 distribution"). The amount of this distribution will equal the price paid by the Fund to such shareholder for the shares sold, and will be taxable as a dividend, i.e., as ordinary income, to the extent of the Fund's current or accumulated earnings and profits allocable to such distribution, with the excess treated as a return of capital reducing the shareholder's tax basis in the shares held after the tender offer, and thereafter as capital gain. Any Fund shares held by a shareholder after a tender offer will be subject to basis adjustments in accordance with the provisions of the Code.

Provided that no tendering shareholder is treated as receiving a Section 301 distribution as a result of selling shares pursuant to a particular tender offer, shareholders who do not sell shares pursuant to that tender offer will not realize constructive distributions on their shares as a result of other shareholders selling shares in the tender offer. In the event that any tendering shareholder is deemed to receive a Section 301 distribution, it is possible that shareholders whose proportionate ownership of the Fund increases as a result of that tender offer, including shareholders who do not tender any shares, will be deemed to receive a constructive distribution under Section 305(c) of the Code in an amount equal to the increase in their percentage ownership of the Fund as a result of the tender offer. Such constructive distribution will be treated as a dividend to the extent of current or accumulated earnings and profits allocable to it.

Use of the Fund's cash to repurchase shares may adversely affect the Fund's ability to satisfy the distribution requirements for treatment as a regulated investment company described above. The Fund may also recognize income in connection with the sale of portfolio securities to fund share purchases, in which case the Fund would take any such income into account in determining whether such distribution requirements have been satisfied.

If the Fund liquidates, shareholders generally will realize capital gain or loss upon such liquidation in an amount equal to the difference between the amount of cash or other property received by the shareholder (including any property deemed received by reason of its being placed in a liquidating trust) and the shareholder's adjusted tax basis in its shares. Any such gain or loss will be long-term if the shareholder is treated as having a holding period in Fund shares of greater than one year, and otherwise will be short-term.

The foregoing discussion does not address the tax treatment of shareholders who do not hold their shares as a capital asset. Such shareholders should consult their own tax advisors on the specific tax consequences to them of participating or not participating in the tender offer or upon liquidation of the Fund.

Current U.S. federal income tax law taxes both long-term and short-term capital gain of corporations at the rates applicable to ordinary income. For non-corporate taxpayers, short-term capital gain is currently taxed at rates applicable to ordinary income while long-term capital gain generally is taxed at a reduced maximum rate. The deductibility of capital losses is subject to limitations under the Code.

Certain U.S. holders who are individuals, estates or trusts and whose income exceeds certain thresholds will be required to pay a 3.8% Medicare tax on all or a portion of their "net investment income," which includes dividends received from the Fund and capital gains from the sale or other disposition of the Fund's common shares.

A common shareholder that is a nonresident alien individual or a foreign corporation (a "foreign investor") generally will be subject to U.S. federal withholding tax at the rate of 30% (or possibly a lower rate provided by an applicable tax treaty) on ordinary income dividends (except as discussed below). In general, U.S. federal withholding tax and U.S. federal income tax will not apply to any gain or income realized by a foreign investor in respect of any distribution of exempt-interest dividends or net capital gain (including amounts credited as an undistributed capital gain dividend) or upon the sale or other disposition of common shares of the Fund. Different tax consequences may result if the foreign investor is engaged in a trade or business in the United States or, in the case of an individual, is present in the United States for 183 days or more during a taxable year and certain other conditions are met. Foreign investors should consult their tax advisers regarding the tax consequences of investing in the Fund's common shares.

Ordinary income dividends properly reported by the RIC are generally exempt from U.S. federal withholding tax where they (i) are paid in respect of the RIC's "qualified net interest income" (generally, its U.S.-source interest income, other than certain contingent interest and interest from obligations of a corporation or partnership in which the RIC is at least a 10% shareholder, reduced by expenses that are allocable to such income) or (ii) are paid in respect of the RIC's "qualified short-term capital gains" (generally, the excess of the RIC's net short-term capital gain over its long-term capital loss for such taxable year). Depending on its circumstances, the Fund may report all, some or none of its potentially eligible dividends as such qualified net interest income or as qualified short-term capital gains, and/or treat such dividends, in whole or in part, as ineligible for this exemption from withholding. In order to qualify for this exemption from withholding, a foreign investor needs to comply with applicable certification requirements relating to its non-U.S. status (including, in general, furnishing an IRS Form W-8BEN, W-8BEN-E, or substitute Form). In the case of common shares held through an intermediary, the intermediary may have withheld tax even if the Fund reported the payment as qualified net interest income or qualified short-term capital gain. Foreign investors should contact their intermediaries with respect to the application of these rules to their accounts. There can be no assurance as to what portion of the Fund's distributions would qualify for favorable treatment as qualified net interest income or qualified short-term capital gains if the provision is extended.

In addition, under the Foreign Account Tax Compliance Act, or FATCA, withholding at a rate of 30% will apply to dividends paid in respect of common shares of the Fund held by or through certain foreign financial institutions (including investment funds), unless such institution enters into an agreement with the Treasury to report, on an annual basis, information with respect to shares in, and accounts maintained by, the institution to the extent such shares or accounts are held by certain U.S. persons and by certain non-U.S. entities that are wholly or partially owned by U.S. persons and to withhold on certain payments. Accordingly, the entity through which common shares of the Fund are held will affect the determination of whether such withholding is required. Similarly, dividends paid in respect of common shares of the Fund held by an investor that is a non-financial foreign entity that does not qualify under certain exemptions will be subject to withholding at a rate of 30%, unless such entity either (i) certifies that such entity does not have any "substantial United States owners" or (ii) provides certain information regarding the entity's "substantial United States owners," which the applicable withholding agent will in turn provide to the Secretary of the Treasury. An intergovernmental agreement between the United States and an applicable foreign country, or future Treasury regulations or other guidance, may modify these requirements. The Fund will not pay any additional amounts to common shareholders in respect of any amounts withheld. Foreign investors are encouraged to consult with their tax advisers regarding the possible implications of these rules on their investment in the Fund's common shares.

U.S. federal backup withholding tax may be required on dividends, distributions and sale proceeds payable to certain non-exempt common shareholders who fail to supply their correct taxpayer identification number (in the case of individuals, generally, their social security number) or to make required certifications, or who are otherwise subject to backup withholding. Backup withholding is not an additional tax and any amount withheld may be refunded or credited against your U.S. federal income tax liability, if any, provided that you timely furnish the required information to the Internal Revenue Service.

Ordinary income dividends, capital gain dividends, and gain from the sale or other disposition of common shares of the Fund also may be subject to state, local, and/or foreign taxes. Common shareholders are urged to consult their own tax advisers regarding specific questions about U.S. federal, state, local or foreign tax consequences to them of investing in the Fund.

Under U.S. Treasury regulations, if a common shareholder recognizes a loss with respect to common shares of $2 million or more for an individual shareholder in a single taxable year (or $4 million or more in any combination of taxable years in which the transaction is entered into and the five succeeding taxable years) or $10 million or more for a corporate shareholder in any single taxable year (or $20 million or more in any combination of taxable years in which the transaction is entered into and the five succeeding taxable years), the shareholder must file with the Internal Revenue Service a disclosure statement on Internal Revenue Service Form 8886. The fact that a loss is reportable under these regulations does not affect the legal determination of whether the taxpayer's treatment of the loss is proper. Common shareholders should consult their tax advisors to determine the applicability of these regulations in light of their individual circumstances.

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The foregoing is a general and abbreviated summary of certain provisions of the Code and the Treasury Regulations presently in effect as they directly govern the taxation of the Fund and its shareholders. For complete provisions, reference should be made to the pertinent Code sections and Treasury Regulations. The Code and the Treasury Regulations are subject to change by legislative or administrative action, and any such change may be retroactive with respect to Fund transactions. Holders of common shares are advised to consult their own tax advisers for more detailed information concerning the U.S. federal income taxation of the Fund and the income tax consequences to its holders of common shares.

**CUSTODIAN AND TRANSFER AGENT**

The custodian of the assets of the Fund is Bank of New York Mellon, whose principal business address is 240 Greenwich Street, New York, NY 10286. The custodian is responsible for, among other things, receipt of and disbursement of funds from the Fund's accounts, establishment of segregated accounts as necessary, and transfer, exchange and delivery of Fund portfolio securities.

ALPS Fund Services, Inc., whose principal business address is 1290 Broadway Suite 1000, Denver, CO 80203, serves as the Fund's transfer agent with respect to the common shares.

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Ernst & Young LLP, whose principal business address is One Manhattan West, 395 9<sup>th</sup> Ave, New York, NY 10001, is the independent registered public accounting firm of the Fund and is expected to render an opinion annually on the financial statements of the Fund.

**CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES**

A control person is a person who beneficially owns, either directly or indirectly, more than 25% of the voting securities of a company. As of March 31, 2025, the Fund did not know of any person or entity who "controlled" the Fund. As of March 31, 2025, the following shareholders beneficially owned 5% or more of the outstanding common shares of any class of the Fund:

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| | | |
|:---|:---|:---|
| **Name and Address of** <br> **Shareholder<sup>(1)</sup>** | **Number of** <br> **Shares** | **Percentage**<br> **of Fund** |
| RiverNorth Capital Management, LLC<br> 325 N. LaSalle Street, Suite 645<br> Chicago, Illinois 60654-7030 | 3084196 | 7.25% |
| Relative Value Partners Group, LLC<br> 1033 Skokie Blvd. Suite 470<br> Northbrook, IL 60062 | 2314254 | 5.44% |

---

(1) This
entity is the shareholder of record and may be deemed to be the beneficial owner of the shares listed for certain purposes under
the securities laws, although in certain instances may not have an economic interest in these shares and would, therefore, ordinarily
disclaim any beneficial ownership therein.

**INCORPORATION BY REFERENCE**

This SAI is part of a registration statement that we have filed with the SEC. We are allowed to "incorporate by reference" the information that we file with the SEC, which means that we can disclose important information to you by referring you to those documents. We incorporate by reference into this SAI the documents listed below and any future filings we make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act, including any filings on or after the date of this SAI from the date of filing (excluding any information furnished, rather than filed), until we have sold all of the offered securities to which this SAI, the Prospectus and any accompanying prospectus supplement relates or the offering is otherwise terminated. The information incorporated by reference is an important part of this SAI. Any statement in a document incorporated by reference into this SAI will be deemed to be automatically modified or superseded to the extent a statement contained in (1) this SAI or (2) any other subsequently filed document that is incorporated by reference into this SAI modifies or supersedes such statement. The documents incorporated by reference herein include:

the Fund's Prospectus, dated [●], 2025, filed with this SAI; and

the Fund's [annual report on Form N-CSR for the fiscal year ended October 31, 2024](http://www.sec.gov/Archives/edgar/data/826020/000139834425000241/fp0091519-1_ncsr.htm), filed with the SEC on January 6, 2025 and the Fund's [semi-annual report on Form N-CSRS for the semi-annual period ended April 30, 2025](http://www.sec.gov/Archives/edgar/data/826020/000139834425012580/fp0094105-1_ncsrs.htm), filed with the SEC on July 2, 2025.

The Fund will provide without charge to each person, including any beneficial owner, to whom this SAI is delivered, upon written or oral request, a copy of any and all of the documents that have been or may be incorporated by reference in this SAI, the Prospectus or the accompanying prospectus supplement. You should direct requests for documents by contacting the Adviser at:

Saba Capital Management, LP

405 Lexington Avenue, 58<sup>th</sup> Floor

New York, NY 10174

(212)-542-4644

The Fund makes available the Prospectus, SAI and the Fund's annual and semi-annual reports, free of charge, at www.sabacef.com. You may also obtain this SAI, the Prospectus, other documents incorporated by reference and other information the Fund files electronically, including reports and proxy statements, on the SEC website (http://www.sec.gov) or with the payment of a duplication fee, by electronic request at publicinfo@sec.gov. Information contained in, or that can be accessed through, the Fund's website is not part of this SAI, the Prospectus or the accompanying prospectus supplement.

**FINANCIAL STATEMENTS**

The audited financial statements and financial highlights included in the annual report to the Fund's shareholders for the fiscal year ended October 31, 2024 (the "2024 Annual Report"), together with the report of Ernst & Young LLP, the independent registered public accounting firm for the Fund, on the financial statements and financial highlights included in the Fund's 2024 Annual Report, are incorporated herein by reference. The financial statements and financial highlights included in the semi-annual report for the period ended April 30, 2025 (the "April 2025 Semi-Annual Report") are incorporated herein by reference.

**<u>APPENDIX A</u>**

**Saba Capital Management, L.P.**

**Proxy Voting and Class Action Policies and Procedures**

The Firm makes investments on behalf of the Clients it advises in securities of public and private issuers. The Firm has authority to vote proxies relating to such securities on behalf of the Clients. Rule 206(4)-6 of the Advisers Act places a variety of requirements on advisers who have such authority. The Firm has adopted these policies and procedures to ensure proxies are voted in compliance with the Advisers Act and in the best interest of the Clients (the "Policy").

**A.** **General Policy** 

The Firm's general policy is to vote proxy proposals, amendments, consents or resolutions relating to Client securities, including interests in Private Funds, if any (collectively "proxies"), in a manner that it believes serves the best interests of the Clients. The Firm has engaged BroadRidge Financial Solutions, Inc. to compile and vote all proxy ballots on behalf of the Firm, using specific guidelines and recommendations provided by Glass, Lewis &Co., LLC ("Glass Lewis").

Notwithstanding the foregoing, with respect to the proxy proposals relating to closed-end funds, the Firm will (1) generally vote in favor of liquidation, open-ending, tender offers, against entrenched boards of directors, and in favor of other similar votes that the Firm, in its good faith discretion, believes can potentially positively impact (i.e., narrow) a closed-end funds' discount (collectively, "Discount Recommendations") and (2)for all other closed-end fund-related matters, in accordance with Glass Lewis or, in the Firm's good faith discretion, vote in accordance with the recommendation adopted by a majority of the Independent Directors of any Client invested in the closed-end fund (the "Independent Board"). In certain situations, an abstention is the only method to vote against a proposal.

In the event the Firm believes that it may have a conflict of interest relative to a specific proxy vote for a Client portfolio holding (including a CEF holding), the Firm shall vote such proxies, on behalf of its Clients in accordance with any of the following, in the Firm's good faith discretion: (i) the recommendation of Glass Lewis; (ii) the recommendation adopted by an Independent Board (even if such Board made its determination only on behalf of the Client which it serves and not on behalf of the other Clients invested in the holding with the proxy at issue); or (iii) in the case of the Registered Funds, the Mirror Vote (as defined below)(the foregoing is hereby referred to as the "Conflicts Voting Procedure").

**B.** **Overrides** 

The Firm may, from time to time, determine that it is in the best interests of its Clients to depart from (i) specific Glass Lewis recommendations and(ii) Discount Recommendations, such as where a portfolio manager has a view on a particular issuer or corporate action that deviates from such recommendations. Investment professionals deviating from these recommendations must provide Compliance with a written explanation of the reason for the deviation, except with respect to proxy proposals relating to CEFs that are in favor of liquidation, open-ending or tender offers, or against entrenched directors.

**C.** **Registered Fund Proxy Policy** 

The Firm has undertaken the responsibility to vote proxies for securities held by the Registered Funds. Proxies for the portfolio securities are voted in accordance with the Registered Funds' proxy voting guidelines, which are set forth in the applicable governing documents. When one of the Registered Funds exercises voting rights, by proxy or otherwise, with respect to investment companies owned by the Registered Funds (and in the case of ETF, pursuant to Section 12(d)(1)(F) of the Investment Company Act), the Firm will generally (i) seek instruction from the applicable Registered Fund's shareholders with regard to the voting of all proxies and vote in accordance with such instructions, (ii) vote the shares held by the Registered Funds in the same proportion as the vote of all other holders of the securities of the investment company ("Mirror Vote"), or (iii) elect to not submit a proxy vote. However, under certain circumstances (including when the Firm believes voting the shares in a particular manner is in the best interests of the Registered Funds) and only to the extent permitted by law, the Firm may vote the shares of an investment company in the same manner as would be voted for other Clients holding such shares in accordance with Section A above.

**D.** **Record of Proxy Voting** 

The Firm will maintain, or have available, (i) written or electronic copies of each proxy statement received and of each executed proxy, (ii) a record of all Firm proxy votes, (iii) a record of any Firm determination to follow the Conflicts Voting Procedure and the rationale therefor: and (iv) a record of any override to Glass Lewis recommendations and documented rationale and analysis that were material to making the voting decision.

The Firm will also maintain a record of each written request from an investor for proxy voting information and the Firm's written response to any request (oral or written) from an investor for proxy voting information.

As Glass Lewis is the Firm's proxy voting vendor, Compliance performs a review, at least annually, of potential conflicts of interest related to Glass Lewis consistent with SEC guidance<sup>(1)(2)</sup>:

● An explanation of the methodology underlying the voting advice, including material deviations from the proxy advisory firm's publicly announced guidelines or standard methodologies, if omitting such an explanation would make the voting advice materially false or misleading;

● To the extent the proxy voting advice is based on third-party sources or is otherwise not solely based on the issuer's public disclosures, disclosure about these sources and the extent to which the information differs from the issuer's public disclosures, if the differences are material and failure to disclose would make the voting advice false or misleading; and

<sup>1</sup> Commission Interpretation and Guidance Regarding the Applicability of the Proxy Rules to Proxy Voting Advice, Exchange Act Release No. 34-86721 (Aug. 21, 2019), available at https://www.sec.gov/rules/interp/2019/34-86721.pdf.

<sup>2</sup> Commission Guidance Regarding Proxy Voting Responsibilities of Investment Advisers, Investment Advisers Act Release No. IA-5325 and Investment Company Act Release No. IC-33605 (Aug. 21, 2019), available at https://www.sec.gov/rules/interp/2019/ia-5325.pdf

● Disclosures about material conflicts of interest associated with providing the proxy voting advice sufficient to enable an assessment of the conflicts.

**E.** **Class Actions** 

The Firm does not commit to participate in all class actions that may arise with regard to Client portfolio securities. Upon receipt of class action information, Compliance should evaluate the costs versus the benefits of participation in the suit for each pertinent Client. Unless Compliance determines that it would be in the best interests of its Clients, the Firm will not participate in the class action on behalf of the Client.

Employees must notify Compliance if they are aware of any material conflict of interest associated with Clients' participation in class actions.

The Firm generally does not serve as the lead plaintiff in class actions because the costs of such participation typically exceed any extra benefits that accrue to lead plaintiffs.

**PART C** 

**Other Information** 

**Item 25.** **Financial Statements And Exhibits** 

The agreements included or incorporated by reference as exhibits to this Registration Statement contain representations and warranties by each of the parties to the applicable agreement. These representations and warranties were made solely for the benefit of the other parties to the applicable agreement and (i) were not intended to be treated as categorical statements of fact, but rather as a way of allocating the risk to one of the parties if those statements prove to be inaccurate; (ii) may have been qualified in such agreement by disclosures that were made to the other party in connection with the negotiation of the applicable agreement; (iii) may apply contract standards of "materiality" that are different from "materiality" under the applicable securities laws; and (iv) were made only as of the date of the applicable agreement or such other date or dates as may be specified in the agreement.

The Registrant acknowledges that, notwithstanding the inclusion of the foregoing cautionary statements, it is responsible for considering whether additional specific disclosures of material information regarding material contractual provisions are required to make the statements in this Registration Statement not misleading.

(1) Financial
Statements

Included in Part A:

Financial Highlights for the year(s) ended October 31, 2024 and the semi-annual period ended April 30, 2025.

Included in Part B:

Audited financial statements and financial highlights for the fiscal year ended October 31, 2024 and related Report of Independent Registered Public Accounting Firm are incorporated herein by reference to the October 31, 2024 Annual Report. Unaudited financial statements and financial highlights for the period ended April 30, 2025 are incorporated herein by reference to the April 2025 Semi-Annual Report.

---

| | |
|:---|:---|
| (2) | Exhibits |
| (a)(1) | [Agreement and Declaration of Trust dated December 2, 1987 - Incorporated herein by reference to Amendment No. 20 to Registrant's Registration Statement under the Investment Company Act of 1940 (the "Investment Company Act") on Form](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) [filed on September 16, 1996.](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) |
| (i) | [Amendment effective April 12, 1996 to the Agreement and Declaration of Trust dated December 2, 1987 - Incorporated herein by reference to Amendment No. 20 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) [filed on September 16, 1996.](http://www.sec.gov/Archives/edgar/data/826020/0000943663-96-000235.txt) |

---

---

| | |
|:---|:---|
| (ii) | [Amendment, effective November 16, 1998, to the Agreement and Declaration of Trust dated December 2, 1987 - Incorporated herein by reference to Amendment No. 29 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/0000950147-98-001002.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/0000950147-98-001002.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/0000950147-98-001002.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/0000950147-98-001002.txt) [filed on December 2, 1998.](http://www.sec.gov/Archives/edgar/data/826020/0000950147-98-001002.txt) |
| (iii) | [Amendment, dated October 20, 2000, to the Agreement and Declaration of Trust dated December 2, 1987 - Incorporated herein by reference to Amendment No. 38 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000095014700001615/0000950147-00-001615-0002.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000095014700001615/0000950147-00-001615-0002.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000095014700001615/0000950147-00-001615-0002.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000095014700001615/0000950147-00-001615-0002.txt) [filed on October 23, 2000.](http://www.sec.gov/Archives/edgar/data/826020/000095014700001615/0000950147-00-001615-0002.txt) |
| (iv) | [Amendment, effective March 1, 2002, to the Agreement and Declaration of Trust dated December 2, 1987 - Incorporated herein by reference to Amendment No. 45 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000095014702000591/ex2av.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000095014702000591/ex2av.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000095014702000591/ex2av.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000095014702000591/ex2av.txt) [filed on April 30, 2002.](http://www.sec.gov/Archives/edgar/data/826020/000095014702000591/ex2av.txt) |
| (v) | [Amendment to the Agreement and Declaration of Trust dated June 11, 2010 - Incorporated herein by reference to Amendment No. 85 to the](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm) [Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm) [filed on April 27, 2011.](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2a1v.htm) |
| (vi) | [Amendment to the Agreement and Declaration of Trust dated January 23, 2014 - Incorporated herein by reference to Amendment No. 100 to the Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000110465914048043/a14-15434_3ex99d2avi.htm)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000110465914048043/a14-15434_3ex99d2avi.htm) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000110465914048043/a14-15434_3ex99d2avi.htm)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000110465914048043/a14-15434_3ex99d2avi.htm) [filed on June 24, 2014.](http://www.sec.gov/Archives/edgar/data/826020/000110465914048043/a14-15434_3ex99d2avi.htm) |
| (b)(1) | [Amended and Restated](http://www.sec.gov/Archives/edgar/data/826020/000168386320011390/f6225d2.htm)[By-Laws](http://www.sec.gov/Archives/edgar/data/826020/000168386320011390/f6225d2.htm) [- Incorporated herein by reference to exhibit (b) of the Registrant's Registration Statement on Form N-2 (File No. 811-05410) filed on June 26, 2020.](http://www.sec.gov/Archives/edgar/data/826020/000168386320011390/f6225d2.htm) |
| (b)(2) | [Amended and Restated By-Laws, dated August 5, 2020 – Incorporated herein by reference to exhibit (b) of the Registrant's Registration Statement under the Investment Company Act on Form N-2 (File No. 811-05410) filed on July 3, 2025](https://www.sec.gov/Archives/edgar/data/826020/000139834425012720/fp0094187-1_ex9928b2.htm). |
| (c) | Not Applicable. |
| (d) | Not Applicable. |
| (e) | [Shareholder Reinvestment Program – filed herein.](ex99-e.htm) |
| (f) | Not Applicable. |
| (g)(1) | [Investment Management Agreement between Saba Capital Income & Opportunities Fund and Saba Capital Management, L.P., dated May 21, 2021 – filed herein](ex99-g1.htm). |
| (h) | Not Applicable. |
| (i) | Not Applicable. |
| (j)(1) | [Custodian and Investment Accounting Agreement between Registrant and State Street Bank and Trust Company effective November 1, 2001 - Incorporated herein by reference to Amendment No. 57 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji.txt) [filed on June 28, 2004.](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji.txt) |

---

---

| | |
|:---|:---|
| (i) | [First Amendment, dated March 1, 2002, to the Custodian and Investment Accounting Agreement between Registrant and State Street Bank and Trust Company effective November 1, 2001 - Incorporated herein by reference to Amendment No. 57 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji1.txt)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji1.txt) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji1.txt)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji1.txt) [filed on June 28, 2004.](http://www.sec.gov/Archives/edgar/data/826020/000104746904021914/a2137992zex-99_ji1.txt) |
| (ii) | [Second Amendment dated October 1, 2007 to the Custodian and Investment Accounting Agreement between Registrant and State Street Bank and Trust Company effective November 1, 2001 - Incorporated herein by reference to Amendment No. 73 to Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000110465908042788/a08-11032_2ex99dbj1ii.htm)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000110465908042788/a08-11032_2ex99dbj1ii.htm) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000110465908042788/a08-11032_2ex99dbj1ii.htm)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000110465908042788/a08-11032_2ex99dbj1ii.htm) [filed on June 27, 2008.](http://www.sec.gov/Archives/edgar/data/826020/000110465908042788/a08-11032_2ex99dbj1ii.htm) |
| (iii) | [Third Amendment, dated August 2, 2010, to the Custodian and Investment Accounting Agreement between Registrant and State Street Bank and Trust Company effective November 1, 2001- Incorporated herein by reference to Amendment No. 85 to the Registrant's Registration Statement under the Investment Company Act on Form](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2j1v.htm)[N-2](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2j1v.htm) [(File No.](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2j1v.htm)[811-5410),](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2j1v.htm) [filed on April 27, 2011.](http://www.sec.gov/Archives/edgar/data/826020/000114544311000426/d28143_ex-2j1v.htm) |
| (j)(2) | [Custody Agreement between Registrant and the Bank of New York Mellon, dated June 4, 2021 – filed herein.](ex99-j2.htm) |
| (i) | [Amendment, dated February 8, 2022, to the Custody Agreement, dated June 4, 2021- filed herein.](ex99-j2i.htm) |
| (k)(1) | [Services Agreement between Registrant and ALPS Fund Services, Inc. and DST Asset Manager Solutions, Inc., dated June 4, 2021 – filed herein.](ex99-k1.htm) |
| (k)(2) | [Credit Agreement between Registrant and Toronto-Dominion Bank, New York Branch dated June 20, 2021 – filed herein.](ex99-k2.htm) |
| (i) | [Amendment No. 10, dated January 17, 2025, to the Credit Agreement dated June 20, 2021 – filed herein.](ex99-k2i.htm) |
| (l) | [Opinion and Consent of Counsel – filed herein.](ex99-l.htm) |
| (m) | Not Applicable. |
| (n) | [Consent of Registered Public Accounting Firm – filed herein](ex99-n.htm). |
| (o) | Not Applicable. |
| (p) | Certificate of Initial Capital - Incorporated herein by reference to Pre-Effective Amendment No. 1 to Registrant's initial registration statement on form N-2 (File No. 33- 18886), filed on January 22, 1988. |
| (q) | Not Applicable. |
| (r)(1) | [Code of Ethics of Saba Capital Income & Opportunities Fund – filed herein.](ex99-r1.htm) |
| (r)(2) | [Code of Ethics of Saba Capital Management, L.P. – filed herein.](ex99-r2.htm) |

---

(s) [Calculation of Filing Fee Table – filed herein.](ex99-s.htm)

(t) [Powers of Attorney – filed herein.](ex99-t.htm)

**Item 26.** **Marketing Arrangements** 

The information contained under the section entitled "Plan of Distribution" in the Prospectus is incorporated by reference, and any information concerning any underwriters will be contained in the accompanying Prospectus Supplement, if any.

**Item 27.** **Other Expenses Of Issuance And Distribution** 

The following table sets forth the estimated expenses to be incurred in connection with the offering described in this Registration Statement:

---

| | | |
|:---|:---|:---|
| SEC registration fee | $18333.73 |  |
| NYSE listing fee | 2500 |  |
| Accounting fees and expenses | 10000 |  |
| Legal fees and expenses | $325000 |  |
| FINRA fee | 0.00 |  |
| &nbsp;&nbsp;&nbsp;Total | $380833.73 | (1) |

---

(1) Estimate
is based on the aggregate estimated expenses to be incurred during a three year shelf offering period.

**Item 28.** **Persons Controlled By Or Under Common Control With The Registrant**

The following table sets forth all persons that are controlled by or under common control with the Registrant:

---

| | | |
|:---|:---|:---|
| **Name** | **Controlling Person** | **Percentage** |
| BRW SPV I | Saba Capital Income & Opportunities Fund | 100% |
| BRW SPV II | Saba Capital Income & Opportunities Fund | 100% |

---

---

| | |
|:---|:---|
| **Item 29.** | **Number Of Holders Of Shares** |
| As of April 30, 2025: | 1730 |

---

---

| | |
|:---|:---|
| **Title Of Class** | **Number Of Record Holders** |
| Common Shares of Beneficial Interest | 1730 |

---

**Item 30.** **Indemnification** 

Registrant's Agreement and Declaration of Trust generally provides that the Fund shall indemnify each of its Trustees and officers (including persons who serve at the Trust's request as directors, officers, or trustees of another organization in which the Fund has any interest as a shareholder, creditor, or otherwise) ("Covered Persons") against all liabilities and expenses, including amounts paid in satisfaction of judgments, in compromise or as fines and penalties, and counsel fees reasonably incurred in connection with the defense or disposition of any action, suit, or other proceeding, whether civil or criminal, by reason of being or having been such a Covered Person except with respect to any matter as to which such Covered Person shall have been finally adjudicated: (a) not to have acted in good faith in the reasonable belief that such Covered Person's action was in the best interest of the Trust; or (b) to be liable to the Fund or its shareholders by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of duties involved in the conduct of such Covered Person's office. Insofar as indemnification for liabilities arising under the Securities Act may be permitted to Trustees, officers, and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Commission, such indemnification is against public policy as expressed in the Securities Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment of the Registrant of expenses incurred or paid by a Trustee, officer, or controlling person of the Registrant in the successful defense of any action, suit, or proceeding) is asserted by such Trustee, officer, or controlling person in connection with the securities being registered, the Registrant will submit, unless in the opinion of its counsel the matter has been settled by controlling precedent, to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act and will be governed by the final adjudication of such issue.

**Item 31.** **Business And Other Connections Of Investment Advisor**

Information as to the Trustees and officers of the Adviser, together with information as to any other business, profession, vocation, or employment of a substantial nature engaged in by the directors and officers of the Adviser in the last two years, is included in its application for registration as an investment adviser on Form ADV (File No. 801-71740) filed under the Investment Advisers Act of 1940, as amended ("Advisers Act"), and is incorporated herein by reference thereto.

**Item 32.** **Location Of Accounts And Records** 

Omitted pursuant to the Instruction of Item 32 of Form N-2.

**Item 33.** **Management Services** 

Not Applicable

**Item 34.** **Undertakings** 

(1) The Registrant undertakes to suspend the Offer until the prospectus is amended if: (a) subsequent to the effective date of this registration statement, the net asset value declines more than ten percent from its net asset value as of the effective date of this registration statement; or (b) the net asset value increases to an amount greater than the net proceeds as stated in the prospectus included in this registration statement.

(2) Not applicable.

(3) The securities being registered will be offered on a delayed or continuous basis in reliance on Rule 415 under the Securities Act of 1933. Accordingly, the Registrant undertakes:

(a) to
file, during any period in which offers or sales are being made, a post-effective amendment to the Registration Statement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) to include any prospectus required by Section 10(a)(3) of the Securities Act of 1933;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) to reflect in the prospectus any facts or events after the effective date of the Registration Statement (or the most recent post-effective amendment thereof) which, individually or in the aggregate, represent a fundamental change in the information set forth in the Registration Statement. Notwithstanding the foregoing, any increase or decrease in volume of securities offered (if the total dollar value of securities offered would not exceed that which was registered) and any deviation from the low or high end of the estimated maximum offering range may be reflected in the form of prospectus filed with the Commission pursuant to Rule 424(b) if, in the aggregate, the changes in volume and price represent no more than 20% change in the maximum aggregate offering price set forth in the "Calculation of Registration Fee" table in the effective registration statement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) to include any material information with respect to the plan of distribution not previously disclosed in the Registration Statement or any material change to such information in the Registration Statement.

(b) that
for the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment shall be deemed to
be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall
be deemed to be the initial bona fide offering thereof;

(c) to
remove from registration by means of a post-effective amendment any of the securities being registered which remain unsold at
the termination of the offering; and

(d) that,
for the purpose of determining liability under the Securities Act of 1933 to any purchaser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if the Registrant is relying on Rule 430B [17 CFR 230.430B]:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Each prospectus filed by the Registrant pursuant to Rule 424(b)(3) shall be deemed to be part of the registration statement as of the date the filed prospectus was deemed part of and included in the registration statement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Each prospectus required to be filed pursuant to Rule 424(b)(2), (b)(5), or (b)(7) as part of a registration statement in reliance on Rule 430B relating to an offering made pursuant to Rule 415(a)(1)(i), (x), or (xi) for the purpose of providing the information required by Section 10(a) of the Securities Act of 1933 shall be deemed to be part of and included in the registration statement as of the earlier of the date such form of prospectus is first used after effectiveness or the date of the first contract of sale of securities in the offering described in the prospectus. As provided in Rule 430B, for liability purposes of the issuer and any person that is at that date an underwriter, such date shall be deemed to be a new effective date of the registration statement relating to the securities in the registration statement to which that prospectus relates, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof. *Provided, however*, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such effective date, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such effective date; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the Registrant is subject to Rule 430C [17 CFR 230.430C]: Each prospectus filed pursuant to Rule 424(b) under the Securities Act of 1933 as part of a registration statement relating to an offering, other than registration statements relying on Rule 430B or other than prospectuses filed in reliance on Rule 430A, shall be deemed to be part of and included in the registration statement as of the date it is first used after effectiveness. Provided, however, that no statement made in a registration statement or prospectus that is part of the registration statement or made in a document incorporated or deemed incorporated by reference into the registration statement or prospectus that is part of the registration statement will, as to a purchaser with a time of contract of sale prior to such first use, supersede or modify any statement that was made in the registration statement or prospectus that was part of the registration statement or made in any such document immediately prior to such date of first use.

(e) that
for the purpose of determining liability of the Registrant under the Securities Act of 1933 to any purchaser in the initial distribution
of securities: The undersigned Registrant undertakes that in a primary offering of securities of the undersigned Registrant pursuant
to this Registration Statement, regardless of the underwriting method used to sell the securities to the purchaser, if the securities
are offered or sold to such purchaser by means of any of the following communications, the undersigned Registrant will be a seller
to the purchaser and will be considered to offer or sell such securities to the purchaser: (1) any preliminary prospectus or prospectus
of the undersigned Registrant relating to the offering required to be filed pursuant to Rule 424 under the Securities Act of 1933;
(2) free writing prospectus relating to the offering prepared by or on behalf of the undersigned Registrant or used or referred
to by the undersigned Registrant; (3) the portion of any other free writing prospectus or advertisement pursuant to Rule 482 under
the Securities Act of 1933 relating to the offering containing material information about the undersigned Registrant or its securities
provided by or on behalf of the undersigned Registrant; and (4) any other communication that is an offer in the offering made
by the undersigned Registrant to the purchaser.

(4) If applicable:

(a) For
the purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of prospectus
filed as part of a registration statement in reliance upon Rule 430A and contained in the form of prospectus filed by the Registrant
under Rule 424(b)(1) under the Securities Act of 1933 shall be deemed to be part of the Registration Statement as of the time
it was declared effective.

(b) For
the purpose of determining any liability under the Securities Act of 1933, each post-effective amendment that contains a form
of prospectus shall be deemed to be a new registration statement relating to the securities offered therein, and the offering
of the securities at that time shall be deemed to be the initial bona fide offering thereof.

(5) The undersigned Registrant hereby undertakes that, for purposes of determining any liability under the Securities Act of 1933, each filing of the Registrant's annual report pursuant to Section 13(a) or Section 15(d) of the Securities Exchange Act of 1934 that is incorporated by reference into the registration statement shall be deemed to be a new registration statement relating to the securities offered therein, and the offering of such securities at that time shall be deemed to be the initial bona fide offering thereof.

(6) Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the Registrant pursuant to the foregoing provisions, or otherwise, the Registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Securities Act of 1933 and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the Registrant of expenses incurred or paid by a director, officer or controlling person of the Registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Securities Act of 1933 and will be governed by the final adjudication of such issue.

(7) The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery within two business days of receipt of a written or oral request, any prospectus or Statement of Additional Information constituting Part B of this Registration Statement.

**SIGNATURES** 

Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Fund has duly caused this Registration Statement to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of New York, and the State of New York, on the 18th day of September, 2025.

---

| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: | /s/ Paul Kazarian |
|  | Paul Kazarian |
|  | Chief Executive Officer |

---

Pursuant to the requirements of the Securities Act of 1933, this Registration Statement has been signed by the following persons in the capacities indicated and on the 18th day of September, 2025.

---

| | |
|:---|:---|
| **Signature** | **Title** |
| /s/ Paul Kazarian | Chief Executive Officer |
| Paul Kazarian |  |
| /s/ Troy Statczar | Principal Financial Officer, Treasurer |
| Troy Statczar |  |
| /s/ Andrew Kellerman\* | Trustee |
| Andrew Kellerman |  |
| /s/ Thomas Bumbolow\* | Trustee |
| Thomas Bumbolow |  |
| /s/ Karen Caldwell\* | Trustee |
| Karen Caldwell |  |
| /s/ Ketu Desai\* | Trustee |
| Ketu Desai |  |
| /s/ Anatoly Nakum\* | Trustee |
| Anatoly Nakum |  |

---

---

| | |
|:---|:---|
| \*By: | /s/ Michael D'Angelo |
|  | (Michael D'Angelo, Attorney-In-Fact) |

---

**EXHIBIT INDEX** 

---

| | |
|:---|:---|
| **Exhibit** <br> **Number** | **Description** |
| [(e)](ex99-e.htm) | [Shareholder Reinvestment Program](ex99-e.htm) |
| [(g)(1)](ex99-g1.htm) | [Investment Management Agreement between Saba Capital Income & Opportunities Fund and Saba Capital Management, L.P., dated May 21, 2021](ex99-g1.htm) |
| [(j)(2)](ex99-j2.htm) | [Custody Agreement between Registrant and the Bank of New York Mellon, dated June 4, 2021](ex99-j2.htm)<br>|
| [(j)(2)(i)](ex99-j2i.htm) | [Amendment, dated February 8, 2022, to the Custody Agreement, dated June 4, 2021](ex99-j2i.htm)<br>|
| [(k)(1)](ex99-k1.htm) | [Services Agreement between Registrant and ALPS Fund Services, Inc. and DST Asset Manager Solutions, Inc., dated June 4, 2021](ex99-k1.htm) |
| [(k)(2)](ex99-k2.htm) | [Credit Agreement between Registrant and Toronto-Dominion Bank, New York Branch dated June 20, 2021](ex99-k2.htm)<br>|
| [(k)(2)(i)](ex99-k2i.htm) | [Amendment No. 10, dated January 17, 2025, to the Credit Agreement dated June 20, 2021](ex99-k2i.htm) |
| [(l)](ex99-l.htm) | [Opinion and Consent of Counsel.](ex99-l.htm) |
| [(n)](ex99-n.htm) | [Consent of Registered Public Accounting Firm](ex99-n.htm). |
| [(r)(1)](ex99-r1.htm) | [Code of Ethics of Saba Capital Income & Opportunities Fund](ex99-r1.htm) |
| [(r)(2)](ex99-r2.htm) | [Code of Ethics of Saba Capital Management, L.P.](ex99-r2.htm) |
| [(s)](ex99-s.htm) | [Calculation of Filing Fee Table](ex99-s.htm) |
| [(t)](ex99-t.htm) | [Powers of Attorney](ex99-t.htm) |

---

## Ex-99.(E)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (e)**

**Dividend Reinvestments**. The Fund maintains a Shareholder Reinvestment Program (the "Program") that allows participating shareholders to reinvest all dividends ("Dividends") in additional common shares of the Fund. Pursuant to the Program, ALPS Fund Services, Inc. ("ALPS"), the Program administrator, purchases, from time to time, common shares on the open market to satisfy Dividend reinvestments. Such common shares are purchased on the open market only when the closing sale or bid price plus commission is less than the NAV per share of the Fund's common shares on the valuation date. If the market price plus commissions is equal to or exceeds NAV, new common shares are issued by the Fund at the greater of (i) NAV or (ii) the market price of the common shares during the pricing period, minus a discount of 5%. Common shares issued by the Fund under the Program will be issued without a fee or a commission.

Shareholders may elect to participate in the Program by submitting a completed participation form to ALPS, the Program administrator. The Program administrator will credit to each participant's account funds it receives from Dividends paid on common shares of the Fund registered in the participant's name. Shareholders may elect to close their account at any time by giving the Transfer Agent written notice. When a participant closes their account, the participant, upon request, will receive a certificate for full common shares in the account. Fractional common shares will be held and aggregated with other fractional common shares being liquidated by the Transfer Agent as agent of the Program and paid for by check when actually sold.

Participants will pay a pro rata share of brokerage commissions with respect to the Program administrator's open market purchases in connection with the reinvestment of Dividends.

The automatic reinvestment of Dividends does not affect the tax characterization of the Dividends (i.e., capital gain distributions and income distributions are realized and subject to tax even though cash is not received). A shareholder whose Dividends are reinvested in common shares under the Program will be treated as having received a Dividend equal to either (i) if common shares are issued under the Program directly by the Trust, generally the fair market value of the common shares issued to the shareholder or (ii) if reinvestment is made through open market purchases, the amount of cash allocated to the shareholder for the purchase of common shares on its behalf in the open market.

Additional information about the Programmay be obtained by contacting the Program administrator at 844-460-9411 or <u>BRWSabaCapital@dstsystems.com</u>.

## Ex-99.(G)(1)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (g)(1)**

INVESTMENT MANAGEMENT AGREEMENT

SABA CAPITAL INCOME & OPPORTUNITIES FUND

This AGREEMENT, dated as of May 21, 2021, shall be effective as of June 4, 2021 and is between Saba Capital Income & Opportunities Fund (the "Trust"), a Massachusetts business trust and Saba Capital Management, L.P. (the "Manager"), a limited partnership formed and existing under the laws of the State of Delaware (the "Agreement").

WHEREAS, the Trust is a closed-end management investment company, registered as such under the Investment Company Act of 1940, as amended (the "1940 Act"); and

WHEREAS, the Manager is registered as an investment adviser under the Investment Advisers Act of 1940, and is engaged in the business of supplying investment advice and investment management and certain other services, as an independent contractor; and

WHEREAS, the Trust desires to retain the Manager to render advice and services pursuant to the terms and provisions of this Agreement, and the Manager is willing to furnish said advice and services.

NOW, THEREFORE, in consideration of the covenants and the mutual promises hereinafter set forth, the parties hereto, intending to be legally bound hereby, mutually agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Employment of Manager</u>.

The Trust hereby employs the Manager and the Manager hereby accepts such employment, to render investment advice and investment management services with respect to the assets of the Trust ("Advisory Services"), and to provide or arrange for the provision of administrative services as the Manager may deem reasonably necessary from time to time for the ordinary operation of the Trust ("Administrative Services"), subject to the supervision and direction of the Board of Trustees of the Trust (the "Trustees").

The Manager shall, as part of its duties hereunder (i) furnish the Trust with advice and recommendations with respect to the investment of the Trust's assets and the purchase and sale of its portfolio securities, including the taking of such other steps as may be necessary to implement such advice and recommendations, (ii) furnish the Trust with reports, statements and other data on securities, economic conditions and other pertinent subjects which the Board of Trustees may reasonably request, (iii) permit, with its written consent, its officers and employees to serve without compensation as Trustees of the Trust if elected to such positions and (iv) in general superintend and manage the investment of the Trust, subject to the ultimate supervision and direction to the Board of Trustees.

Subject to the approval of the Board of Trustees, the Manager is authorized to enter into sub-advisory agreements with other registered investment advisers to serve as investment sub-advisers, whether or not affiliated with the Manager (each, a "Sub-Adviser"). The Manager will continue to have responsibility for all services furnished pursuant to any sub-advisory agreement. The Trust and the Manager understand and agree that the Manager may manage the Trust with one or more Sub-Advisers, which contemplates that the Manager will, among other things: (i) continually evaluate the performance of any Sub-Adviser to the Trust; and (ii) periodically make recommendations to the Board of Trustees regarding the results of its evaluation and monitoring functions. The Trust recognizes that, subject to the approval of the Board of Trustees, a Sub-Adviser's services may be terminated or modified and that the Manager may appoint a new Sub-Adviser for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Reasonable Best Judgment</u>. The Manager shall use its reasonable best judgment and efforts in rendering the Advisory Services as contemplated by this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Exclusivity</u>. The Manager shall, for all purposes herein, be deemed to be an independent contractor, and shall, unless otherwise expressly provided and authorized, have no authority to act for or represent the Trust in any way, or in any way be deemed an agent for the Trust. It is expressly understood and agreed that the Advisory Services to be rendered by the Manager to the Trust under the provisions of this Agreement are not to be deemed exclusive, and the Manager shall be free to render similar or different services to others so long as its ability to render the services provided for in this Agreement shall not be materially impaired thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Reasonable Best Efforts</u>. The Manager agrees to use its reasonable best efforts in the furnishing of such advice and recommendations to the Trust, in the preparation of reports and information, in the management of the Trust's assets, and in the provision of Advisory Services, all pursuant to this Agreement, and for this purpose the Manager shall, at its own expense, maintain such staff and employ or retain such personnel and consult with such other persons as it shall from time to time determine to be necessary to the performance of its obligations under this Agreement. Without limiting the generality of the foregoing, the staff and personnel of the Manager shall be deemed to include persons employed or retained by the Manager to furnish statistical, research, and other factual information, advice regarding economic factors and trends, information with respect to technical and scientific developments, and such other information, advice and assistance as the Manager may desire and request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Statements and Reports</u>. The Trust will from time to time furnish to the Manager detailed statements of the investments and assets of the Trust and information as to its investment objectives and needs, and will make available to the Manager such financial reports, proxy statements, legal and other information relating to its investments as may be in the possession of the Trust or available to it and such other information as the Manager may reasonably request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Expenses</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In consideration for the Management Fee, the Manager will provide the Trust with certain operational and managerial services. The Manager shall be responsible for (i) the compensation of any Sub-Adviser retained pursuant to this Agreement, and (ii) the compensation of any investment advisory personnel that provide services to the Trust on behalf of the Manager pursuant to this Agreement, along with the allocable portion of the following "overhead expenses" (office space, rent and utilities, furniture and fixtures, computer equipment, stationery, secretarial/managerial services, salaries, entertainment expenses, employee insurance and payroll taxes) attributable to such investment advisory personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Other than the expenses expressly borne by the Manager pursuant to Section 6(a) above, the Trust shall be responsible for all of the expenses of its operations, including, without limitation, the Trust's investment-related expenses whether relating to investments that are consummated or unconsummated (*e.g*.*,* brokerage commissions, due diligence costs, expenses relating to short sales, investment banking fees, sourcing or finder's fees (which may include a base fee component and/or a performance compensation component), borrowing charges on securities sold short, custodial fees and expenses and nominee fees); bank service fees, clearing and settlement charges and interest expense; Management Fees; fees and expenses incidental to the purchase and sale of interests in, and the fees and expenses of, portfolio companies in which the Trust invests; interest payable on debt, if any, to finance the Trust's investments; expenses relating to software tools, programs or other technology utilized in managing the Trust (including, without limitation, third-party software licensing, implementation, data management and recovery services and custom development costs); exchange listing fees, expenses relating to proxy contests, voting, tender offers and solicitation fees and expenses; trading platform and seat fees; research-related expenses, including, without limitation, news and quotation equipment and services; fees and expenses associated with independent audits and outside legal costs; fees for data and software providers; other expenses related to the purchase, sale or transmittal of investments; website creation and maintenance, fees for risk management systems and service providers; legal expenses; other professional fees (including, without limitation, expenses of consultants and experts); transfer agent and custodial fees; the costs of organizing and maintaining any subsidiaries; costs relating to swaps (and similar agreements); tax preparation expenses; accounting expenses; fees and expenses associated with marketing and investor relations efforts including proxy solicitations and shareholder meetings; costs of printing and mailing proxies, reports and/or notices; market data costs; administration expenses (including fees for the provision of middle-office and back-office services); directors' and officers' fees); Trust-related insurance expenses (including, without limitation, premium payments for fidelity bonds and Directors' and Officers' and Errors and Omissions insurance); compensation and expenses of the independent members of the Board of Trustees of the Trust; organizational and offering-related expenses, including the preparation and filing of related registration statements under the Securities Act of 1933, as amended; filing and registration fees; corporate licensing fees, federal, state and local taxes and other governmental fees and expenses; all regulatory expenses (including, without limitation, fees and expenses incurred in connection with ongoing compliance obligations and the preparation and filing of regulatory filings, including those required under the 1940 Act and applicable federal and state securities laws); litigation-related and indemnification expenses; withholding and transfer fees; trademarks; other expenses related to the purchase, monitoring, sale, allocation, settlement, custody, valuation, appraisal or transmittal of assets; extraordinary expenses, including the costs of any third party pricing or valuation services; the allocable portion of the compensation and related overhead expenses attributable to any director, officer, partner or employee of the Manager or any affiliate thereof when and to the extent providing administrative services to the Trust; and other similar expenses and all other costs and expenses incurred in connection with the engagement of any third party service providers to provide administrative services to the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) To the extent the Manager incurs or bears any costs or expenses expressly borne by the Trust pursuant to Section 6(b) above, the Trust shall promptly reimburse the Manager for such costs and expenses on no less frequently than a quarterly basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Delegation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Manager may delegate the performance of certain Advisory Services to a Sub-Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Certain Administrative Services may be furnished by the directors, officers, partner or employees of the Manager or of affiliates of the Manager, or by any third-party service provider retained by the Trust to provide such Administrative Services in lieu of the Manager; <u>provided</u>, that any agreement pertaining to the provision of Administrative Services shall be subject to the approval of the Board of Trustees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Manager shall not be liable to the Trust for any service delegated to a third party service provider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. <u>Oversight of Sub-Advisers</u>. In the event that the Manager wishes to select others to render Advisory Services, the Manager shall analyze, select and recommend for consideration and approval by the Board of Trustees investment advisory firms (however organized) to provide investment advice to the Trust, and, at the expense of the Manager, engage (which engagement may also be by the Trust) any such investment advisory firm to render investment advice and manage the investments of the Trust and the composition the Trust's portfolio of securities and investments, including cash, and the purchase, retention and disposition thereof, or any offering thereof, in accordance with the Trust's investment objective or objectives and policies as stated in the Trust's registration statement, as may be supplemented or amended from time to time (the "Registration Statement"). The Manager shall take the following actions in respect of the performance by the Sub-Adviser of its obligations in respect of the Trust:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Periodically monitor and evaluate the performance of the Sub-Advisers with respect to the investment objectives and policies of the Trust, including without limitation, perform periodic detailed analysis and review of the Sub-Adviser's investment performance in respect of the Trust and in respect of other accounts managed by the Sub-Adviser with similar investment strategies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Prepare and present periodic reports to the Board of Trustees regarding the investment performance of the Sub-Adviser and other information regarding the Sub-Adviser, at such times and in such forms as the Board of Trustees may reasonably request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Review and consider any changes in the personnel of the Sub-Adviser responsible for performing the Sub-Adviser's obligations and make appropriate reports to the Board of Trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Review and consider any changes in the ownership or senior management of the Sub-Adviser and make appropriate reports to the Board of Trustees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Perform periodic in-person or telephonic diligence meetings with representatives of the Sub-Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Supervise Sub-Advisers with respect to the services that such Sub-Advisers provide under each Sub-Adviser's Sub-Advisory Agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Assist the Board of Trustees and management of the Trust in developing and reviewing information with respect to the initial approval of the Sub-Adviser Agreement with the Sub- Adviser and annual consideration of the agreement thereafter;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Monitor the Sub-Advisers for compliance with the investment objective or objectives, policies and restrictions of the Trust, the 1940 Act, Subchapter M of the Internal Revenue Code, and if applicable, regulations under such provisions, and other applicable law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) If appropriate, analyze and recommend for consideration by the Board of Trustees termination of a contract with a Sub-Adviser under which the Sub-Adviser provides investment advisory services to the Trust;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Identify potential successors to or replacements of the Sub-Adviser or potential additional Sub-Advisers, perform appropriate due diligence, and develop and present to the Board of Trustees a recommendation as to any such successor, replacement, or additional Sub-Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) Designate and compensate from its own resources such personnel as the Manager may consider necessary or appropriate to the performance of its services hereunder; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Perform such other review and reporting functions as the Board of Trustees shall reasonably request consistent with this Agreement and applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. <u>Compensation</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Trust agrees to pay to the Manager, and the Manager agrees to accept, as full compensation for all Advisory Services furnished or provided to the Trust and as full reimbursement for all expenses assumed by the Manager consistent with Section 6(a), a management fee equal to the amount specified for the Trust on *Schedule A*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The management fees shall be accrued daily by the Trust and paid to the Manager at the end of each calendar month.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. <u>Prohibition on Short Positions</u>. The Manager agrees that neither it nor any of its officers or employees shall take any short position in the capital stock of the Trust. This prohibition shall not prevent the purchase of such shares by any of the officers and directors or bona fide employees of the Manager or any trust, pension, profit-sharing or other benefit plan for such persons or affiliates thereof, at a price not less than the net asset value thereof at the time of purchase, as allowed pursuant to rules promulgated under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. <u>Actions in Contravention of Organizational Documents</u>. Nothing herein contained shall be deemed to require the Trust to take any action contrary to the Declaration of Trust or By- Laws of the Trust, or any applicable statute or regulation, or to relieve or deprive the Trustees of the Trust of its responsibility for and control of the conduct of the affairs of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Limitation of Liability of the Manager; Indemnification</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the absence of willful misfeasance, bad faith, gross negligence, or reckless disregard of obligations or duties hereunder on the part of the Manager, the Manager (and its officers, managers, agents, employees, partners, controlling persons, members, agents and any other person or entity affiliated with the Manage) shall not be subject to liability to the Trust, the members of the Board of Trustees or to any shareholder of the Trust, for any act or omission in the course of, or connected with, rendering Advisory Services and any other services provided from time to time by the Manager or for any losses that may be sustained in the purchase, holding or sale of any security by the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No provision of this Agreement shall be construed to protect any director or officer of the Trust, or of the Manager, from liability in violation of Section 17(i) of the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Trust shall indemnify the Manager (and its officers, managers, agents, employees, partners, controlling persons, members, agents and any other person or entity affiliated with the Manager) (collectively, the "Indemnified Parties") and hold them harmless from and against all damages, liabilities, costs and expenses (including reasonable attorneys' fees and amounts reasonably paid in settlement) incurred by the Indemnified Parties in or by reason of any pending, threatened or completed action, suit, investigation or other proceeding (including an action or suit by or in the right of the Trust or its security holders) arising out of or otherwise based upon the performance of any of the Manager's duties or obligations under this Agreement or otherwise as an investment adviser of the Trust. Notwithstanding the preceding sentence of this Paragraph 12 to the contrary, nothing contained herein shall protect or be deemed to protect the Indemnified Parties against or entitle or be deemed to entitle the Indemnified Parties to indemnification in respect of, any liability to the Trust or its security holders to which the Indemnified Parties would otherwise be subject by reason of willful misfeasance, bad faith or gross negligence in the performance of the Manager's duties or by reason of the reckless disregard of the Manager's duties and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Term and Continuation</u>. This Agreement shall become effective June 4, 2021 (the "Effective Date"), subject to the condition that the Board of Trustees, including a majority of those Trustees who are not parties to this Agreement or interested persons (as defined under the 1940 Act) of either the Trust or the Manager, and a majority of the outstanding voting securities of the Trust, shall have approved this Agreement. Unless terminated as provided herein, the Agreement shall continue in full force and effect for two years following the Effective Date, and shall continue from year to year thereafter so long as such continuation is approved at least annually by either (i) the Board of Trustees, including a majority of those Trustees who are not parties to this Agreement or interested persons (as defined under the 1940 Act) of either the Trust or the Manager, or (ii) the affirmative vote of a majority of the outstanding voting securities of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Termination</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This Agreement may be terminated at any time, without payment of any penalty, by the Board of Trustees of the Trust or by the affirmative vote of a majority of the outstanding voting securities of the Trust, upon sixty (60) days written notice to the Manager, and by the Manager upon sixty (60) days written notice to the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement shall terminate automatically in the event of any transfer or assignment thereof, as defined in the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Use of Name</u>. It is understood that the name "Saba Capital Management, L.P." or any trademark, trade name, service mark, or logo, or any variation of such trademark, service mark, or logo of the Manager or its affiliates, including but not limited to the mark "Saba®" (collectively, the "Saba Marks") is the valuable property of the Manager and its affiliates, and that the Trust has the right to use such Saba Marks only so long as this Agreement or any subsequent agreement with the Manager in replacement of this Agreement shall continue with respect to such Trust. Upon termination of this Agreement without its replacement by a subsequent agreement, the Trust shall, as soon as is reasonably possible, discontinue all use of the Saba Marks and shall promptly amend its Declaration of Trust to change its name (if such Saba Marks are included therein).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18. <u>Applicable Law</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If any provision of this Agreement shall be held or made invalid by a court decision, statute, rule, or otherwise, the remainder of this Agreement shall not be affected thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The term "majority of the outstanding voting securities" of the Trust shall have the meaning as set forth in the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) This Agreement shall be governed by the laws of the State of New York applicable to contracts formed and to be performed entirely within the State of New York, without regard to the conflicts of law principles thereof, to the extent such principles would require or permit the application of the laws of another jurisdiction; <u>provided</u>, that nothing herein shall be construed in a manner inconsistent with the 1940 Act, the Investment Advisors Act of 1940, as amended, or any rules or orders of the SEC thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;19. <u>Limitation of Liability for Claims</u>. The Manager is hereby expressly put on notice of the limitation of liability as set forth in the Trust's Declaration of Trust and agrees that the obligations assumed by the Trust pursuant to this Agreement shall be limited in all cases to the Trust and its assets, and the Manager shall not seek satisfaction of any such obligation from the shareholders of the Trust or from any trustee, officer, employee or agent of the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;20. <u>Excess Brokerage Commissions</u>. The Manager is hereby authorized, to the fullest extent now or hereafter permitted by law, to cause the Trust to pay a member of a national securities exchange, broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission another member of such exchange, broker or dealer would have charged for effecting that transaction, if the Manager determines in good faith, taking into account such factors as price (including the applicable brokerage commission or dealer spread), size of order, difficulty of execution, and operational facilities of the firm and the firm's risk and skill in positioning blocks of securities, that such amount of commission is reasonable in relation to the value of the brokerage and/or research services provided by such member, broker or dealer, viewed in terms of either that particular transaction or its overall responsibilities with respect to the Trust's portfolio, and constitutes the best net results for the Trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;21. <u>Responsibility of Dual Directors, Officers and/or Employees</u>. If any person who is a manager, partner, officer or employee of the Manager or its affiliates is or becomes a director, officer, partner and/or employee of the Trust and acts as such in any business of the Trust, then such manager, partner, officer and/or employee of the Manager or its affiliates shall be deemed to be acting in such capacity solely for the Trust, and not as a manager, partner, officer or employee of the Manager or its affiliates or under the control or direction of the Manager, even if paid by the Manager or an affiliate thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;22. <u>Amendment of Agreement</u>**.** This Agreement may be amended only by written agreement of the Manager and the Trust and only in accordance with the provisions of the 1940 Act and the rules and regulations promulgated thereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;23. <u>Proxy Voting</u>. The Manager shall be responsible for voting any proxies solicited by an issuer of securities held by the Trust in the best interest of the Trust and in accordance with the Manager's proxy voting policies and procedures, as any such proxy voting policies and procedures may be amended from time to time. The Manager's proxy voting policies and procedures, and any amendment thereto will be subject to Board of Trustee's approval. The Trust has been provided with a copy of the Manager's proxy voting policies and procedures and has been informed as to how it can obtain further information from the Manager regarding proxy voting activities undertaken on behalf of the Trust. In accordance with its provisions of managerial services to the Trust hereunder, the Manager shall be responsible for reporting the Trust's proxy voting activities, as required, through periodic filings on Form N-PX or any successor form thereto.

**IN WITNESS WHEREOF** the parties hereto have caused this instrument to be executed by their officers designated below as of the day and year first written above.

---

| | | |
|:---|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: | ![](ex99g1001.jpg) | ![](ex99g1001.jpg) |
|  | Name: | Andrew Kellerman |
|  | Title: | Chair of the Board of Trustees |
| SABA CAPITAL MANAGEMENT, L.P. | SABA CAPITAL MANAGEMENT, L.P. | SABA CAPITAL MANAGEMENT, L.P. |
| By: | ![](ex99g1002.jpg) | ![](ex99g1002.jpg) |
|  | Name: | Michael D'Angelo |
|  | Title: | COO |

---

**SCHEDULE A**

with respect to the

INVESTMENT MANAGEMENT AGREEMENT

between

SABA CAPITAL INCOME & OPPORTUNITIES FUND

and

SABA CAPITAL MANAGEMENT, L.P.

---

| | |
|:---|:---|
| &nbsp;&nbsp;<u>Series</u> | &nbsp;&nbsp;<u>Annual Management Fee</u><br> (as a percentage of Managed Assets\*) |
| &nbsp;&nbsp;Saba Capital Income & Opportunities Fund | &nbsp;&nbsp;1.05% |

---

\* "Managed Assets" shall mean the Trust's average daily gross asset value, minus the sum of the Trust's accrued and unpaid dividends on any outstanding preferred shares and accrued liabilities (other than liabilities for the principal amount of any borrowings incurred, commercial paper or notes issued by the Trust and the liquidation preference of any outstanding preferred shares).

## Ex-99.(J)(2)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (j)(2)**

**EXECUTION**

![](ex99j2001.jpg)

**CUSTODY AGREEMENT**

**By and Between**

**THE BANK OF NEW YORK MELLON**

**AND**

**SABA CAPITAL INCOME & OPPORTUNITIES FUND**

**BNY MELLON AND CUSTOMER CONFIDENTIAL**

**TABLE OF CONTENTS**

---

| | | | |
|:---|:---|:---|:---|
| **1.** | **DEFINITIONS** | **DEFINITIONS** | **1** |
| **2.** | **APPOINTMENT OF CUSTODIAN; ACCOUNTS** | **APPOINTMENT OF CUSTODIAN; ACCOUNTS** | **3** |
|  | 2.1 | Appointment of Custodian | 3 |
|  | 2.2 | Establishment of Accounts | 4 |
| **3.** | **AUTHORIZED PERSONS AND INSTRUCTIONS; ELECTRONIC ACCESS** | **AUTHORIZED PERSONS AND INSTRUCTIONS; ELECTRONIC ACCESS** | **4** |
|  | 3.1 | Authorized Persons | 4 |
|  | 3.2 | Instructions | 5 |
|  | 3.3 | BNY Mellon Actions Without Instructions | 6 |
|  | 3.4 | Funds Transfers | 7 |
|  | 3.5 | Electronic Access | 7 |
| **4.** | **SUBCUSTODIANS, DEPOSITORIES AND AGENTS** | **SUBCUSTODIANS, DEPOSITORIES AND AGENTS** | **7** |
|  | 4.1 | Use of Subcustodians and Depositories | 7 |
|  | 4.2 | Liability for Subcustodians | 8 |
|  | 4.3 | Liability for Depositories | 8 |
|  | 4.4 | Use of Agents | 8 |
| **5.** | **CORPORATE ACTIONS** | **CORPORATE ACTIONS** | **9** |
|  | 5.1 | Notification | 9 |
|  | 5.2 | Exercise of Rights | 9 |
|  | 5.3 | Partial Redemptions, Payments, Etc. | 9 |
| **6.** | **SETTLEMENT** | **SETTLEMENT** | **9** |
|  | 6.1 | Settlement Instructions | 9 |
|  | 6.2 | Settlement Funds | 9 |
|  | 6.3 | Settlement Practices | 10 |
| **7.** | **TAX MATTERS** | **TAX MATTERS** | **10** |
|  | 7.1 | Tax Obligations | 10 |
|  | 7.2 | Payments | 11 |
| **8.** | **CREDITS AND ADVANCES** | **CREDITS AND ADVANCES** | **11** |
|  | 8.1 | Contractual Settlement and Income | 11 |
|  | 8.2 | Advances | 12 |
|  | 8.3 | Payment | 12 |
|  | 8.4 | Securing Payment | 12 |
|  | 8.5 | Setoff | 12 |
|  | 8.6 | Currency Conversion | 13 |
| **9.** | **STATEMENTS; BOOKS AND RECORDS; THIRD PARTY DATA** | **STATEMENTS; BOOKS AND RECORDS; THIRD PARTY DATA** | **13** |
|  | 9.1 | Statements | 13 |
|  | 9.2 | Books and Records | 13 |
|  | 9.3 | Third Party Data | 14 |
| **10.** | **DISCLOSURES** | **DISCLOSURES** | **14** |
|  | 10.1 | Required Disclosure | 14 |
|  | 10.2 | Foreign Exchange Transactions | 15 |
|  | 10.3 | Investment of Cash | 15 |

---

i

---

| | | | |
|:---|:---|:---|:---|
| **11.** | **REGULATORY MATTERS** | **REGULATORY MATTERS** | **15** |
|  | 11.1 | USA PATRIOT Act | 15 |
|  | 11.2 | Sanctions; Anti-Money Laundering | 15 |
| **12.** | **COMPENSATION** | **COMPENSATION** | **17** |
|  | 12.1 | Fees and Expenses | 17 |
|  | 12.2 | Other Compensation | 17 |
| **13.** | **REPRESENTATIONS, WARRANTIES AND COVENANTS** | **REPRESENTATIONS, WARRANTIES AND COVENANTS** | **17** |
|  | 13.1 | BNY Mellon | 17 |
|  | 13.2 | Customer | 18 |
| **14.** | **LIABILITY** | **LIABILITY** | **18** |
|  | 14.1 | Standard of Care | 18 |
|  | 14.2 | Limitation of Liability | 18 |
|  | 14.3 | Force Majeure | 20 |
|  | 14.4 | Indemnification | 20 |
| **15.** | **CONFIDENTIALITY** | **CONFIDENTIALITY** | **20** |
|  | 15.1 | Confidentiality Obligations | 20 |
|  | 15.2 | Exceptions | 21 |
| **16.** | **TERM AND TERMINATION** | **TERM AND TERMINATION** | **21** |
|  | 16.1 | Term | 21 |
|  | 16.2 | Termination | 21 |
|  | 16.3 | Effect of Termination | 21 |
|  | 16.4 | Survival | 22 |
| **17.** | **GENERAL** | **GENERAL** | **22** |
|  | 17.1 | Non-Custody Assets | 22 |
|  | 17.2 | Assignment | 22 |
|  | 17.3 | Amendment | 23 |
|  | 17.4 | Governing Law/Forum | 23 |
|  | 17.5 | Business Continuity/Disaster Recovery | 23 |
|  | 17.6 | Non-Fiduciary Status | 23 |
|  | 17.7 | Notices | 23 |
|  | 17.8 | Entire Agreement | 24 |
|  | 17.9 | No Third Party Beneficiaries | 24 |
|  | 17.10 | Counterparts | 24 |
|  | 17.11 | Interpretation | 24 |
|  | 17.12 | No Waiver | 24 |
|  | 17.13 | Headings | 24 |
|  | 17.14 | Severability | 24 |
| **EXHIBIT A** | **EXHIBIT A** |  | **27** |

---

ii

**CUSTODY AGREEMENT**

This Custody Agreement is made and entered into as of the latest date set forth on the signature page hereto (the "**Effective Date**") by and between **THE BANK OF NEW YORK MELLON**, a New York state chartered bank ("**BNY Mellon**"), and **SABA CAPITAL INCOME & OPPORTUNITIES FUND**, a Massachusetts Business Trust ("**Customer**"). BNY Mellon and Customer are collectively referred to as the "**Parties**" and individually as a "**Party**".

**RECITALS**

WHEREAS, Customer wishes to appoint BNY Mellon as the custodian of certain of its assets, and BNY Mellon is willing to provide such services on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants and agreements set forth herein, and intending to be legally bound, the Parties agree as follows.

**1.** **DEFINITIONS** 

Whenever used in this Agreement, the following words have the meanings set forth below:

"**1940 Act**" means the U.S. Investment Company Act of 1940, as amended.

"**Account**" or "**Accounts**" has the meaning set forth in Section 2.2.

"**Act**" has the meaning set forth in Section 10.1(a).

"**Affiliate**" means, with respect to any entity, any other entity that directly or indirectly controls, is controlled by or under common control with such entity.

"**Agreement**" means, collectively, this Custody Agreement, any Exhibits hereto and any other documents incorporated herein by reference.

"**Anti-Money Laundering Laws**" means all anti-money laundering and counter-terrorist financing laws, rules, regulations, executive orders and requirements administered by any governmental authority of the United States (including the U.S. Bank Secrecy Act, the U.S.A. PATRIOT Act, and regulations of the U.S. Treasury Department which implement such acts) or any other applicable domestic or foreign authority over Customer.

"**Assets**" has the meaning set forth in Section 2.1(a).

"**Authorized Person**" has the meaning set forth in Section 3.1.

"**BNY Mellon**" has the meaning set forth in the introductory paragraph.

"**Cash**" means the money and currency of any jurisdiction which is delivered to and received and accepted by BNY Mellon for deposit in an Account.

"**Confidential Information**" means, with respect to a Party, the terms of this Agreement and all information of such Party (including, with respect to Customer, information regarding the Accounts, the Assets, Customer's shareholders and its practices and procedures related to the services provided hereunder, and including, with respect to BNY Mellon, information regarding its practices and procedures related to the services provided hereunder) disclosed to the other Party in connection with this Agreement and reasonably believed by the receiving Party to be confidential at the time of disclosure.

"**Customer**" has the meaning set forth in the introductory paragraph.

"**Data Terms Website**" means *<u>http://www.bnymellon.com/products/assetservicing/vendoragreement.pdf</u>* or any successor website the address of which is provided by BNY Mellon to Customer.

"**Depository**" means the Depository Trust Company, Euroclear, Clearstream Banking S.A., the Canadian Depository System, CLS Bank and any other securities depository, book-entry system or clearing agency authorized to act as a system for the central handling of securities pursuant to the laws of the applicable jurisdiction, and any successors to, and/or nominees of, any of the foregoing.

"**Effective Date**" has the meaning set forth in the introductory paragraph.

"**Electronic Access Services**" means such services made available by BNY Mellon or a BNY Mellon Affiliate to Customer to electronically access information relating to the Accounts and/or transmit Instructions.

"**Electronic Signature**" means an image, representation or symbol inserted into an electronic copy of the Agreement by electronic, digital or other technological methods.

"**Foreign Depository**" means an "Eligible Securities Depository" (as defined in Rule 17f-7 under the 1940 Act) identified by BNY Mellon to Customer from time to time.

"**Instructions**" means, with respect to this Agreement, instructions issued to BNY Mellon by way of (a) one of the following methods (each as and to the extent specified by BNY Mellon as available for use in connection with the services hereunder): (i) the Electronic Access Services; (ii) third-party electronic communication services containing, where applicable, appropriate authorization codes, passwords or authentication keys, or otherwise reasonably believed by BNY Mellon to have been transmitted by an Authorized Person or (iii) third-party institutional trade matching utilities used to effect transactions in accordance with such utility's customary procedures or (b) such other method as may be agreed upon by the Parties and that, in each case, BNY Mellon reasonably believes to have been transmitted by an Authorized Person.

"**Market Data**" means pricing, valuations or other commercially sourced data applicable to any Security. Market Data also includes security identifiers, bond ratings and classification data.

"**Market Data Providers**" means vendors and analytics providers and any other Person providing Market Data to BNY Mellon.

"**Non-Custody Assets**" has the meaning set forth in Section 17.1.

"**Oral Instructions**" means, with respect to this Agreement, spoken instructions issued to BNY Mellon and reasonably believed by BNY Mellon to be from an Authorized Person.

"**Party**" or "**Parties**" has the meaning set forth in the introductory paragraph.

"**Person**" or "**Persons**" means any entity or individual.

"**Sanctions**" means all applicable economic sanctions laws, rules, regulations, executive orders and requirements administered by any governmental authority of the United States (including the Office of Foreign Assets Control (OFAC) of the U.S. Department of the Treasury) or any other applicable domestic or foreign authority with jurisdiction over Customer.

"**Securities**" means all (a) stocks, shares, bonds, debentures, notes or other similar obligations and any related certificates, receipts, warrants or any other debt and equity securities and (b) instruments representing rights or interests therein, including rights to receive, subscribe to or purchase the foregoing or evidencing or representing any other rights or interests therein; in each case as may be agreed upon from time to time by BNY Mellon and Customer and which are from time to time delivered to or received by BNY Mellon and/or any Subcustodian for deposit in an Account.

"**Standard of Care**" has the meaning set forth in Section 14.1.

"**Subcustodian**" means a bank or other financial institution (other than a Depository) that is selected and used by BNY Mellon or a BNY Mellon Affiliate (acting as subcustodian) in connection with the settlement of transactions and/or custody of Assets hereunder, and any successors to, and/or nominees of, any of the foregoing.

"**Tax Information**" means all accurate, relevant and necessary information with respect to the Accounts or with respect to Customer's identification or classification for purposes of Tax Obligations, in each case as may be required by applicable tax laws or by a tax authority inquiry, or as may be requested by BNY Mellon in connection with the matters in Section 7.

"**Tax Obligations**" means taxes, withholding, certification and reporting requirements, claims for exemptions or refund, interest, penalties, additions to tax and other related expenses.

"**Third Party Data**" has the meaning set forth in Section 9.3(a).

**2.** **APPOINTMENT OF CUSTODIAN; ACCOUNTS** 

**2.1** **Appointment of Custodian** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer
 hereby appoints BNY Mellon as custodian of all Securities and Cash to be held under,
 and in accordance with the terms of, this Agreement (collectively, "**Assets** "),
 and BNY Mellon hereby accepts such appointment. The Parties acknowledge and agree that
 BNY Mellon's duties pursuant to such appointment will be limited solely to those
 duties expressly undertaken pursuant to this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 the foregoing, BNY Mellon has no obligation:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) With
 respect to any Assets until they are actually received in an Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To
 inquire into, make recommendations, supervise or determine the suitability of any transactions
 affecting any Account or to question any Instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) To
 monitor the Securities in the Accounts to determine whether Customer complies with limitations
 on ownership or any restrictions on investors provided for by local law, regulations
 or market practice, or provisions in the issuer's articles of incorporation or
 by-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) To
 determine the adequacy of title to, or the validity or genuineness of, any Assets received
 by it or delivered by it pursuant to this Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) With
 respect to any matters related to: the establishment, maintenance operation or termination
 of Customer; or the offer, sale or distribution of the shares of, or interests in, Customer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Cash
 held hereunder may be subject to additional deposit terms and conditions issued by BNY
 Mellon or the applicable Subcustodian from time to time, including rates of interest
 and deposit account access.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If
 Customer engages in securities lending activities, such activities will be subject to
 certain additional and/or modified terms to be set forth in a separate written agreement
 between Customer and BNY Mellon or a BNY Mellon Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) If
 Customer seeks to have BNY Mellon to safekeep any uncertificated securities which are
 registered in a name other than that of BNY Mellon or one of its nominees or similar
 investment-related documentation, the delivery of such uncertificated securities or documentation
 shall be subject to the terms and conditions set forth in Exhibit A hereto.

**2.2** **Establishment of Accounts** 

BNY Mellon will establish and maintain a separate account in which BNY Mellon will hold Assets as provided herein (each, an "**Account**," and collectively, the "**Accounts**"). Any Account established under this Agreement shall be maintained separately from the Account of any other Customer of BNY Mellon and BNY Mellon shall hold and segregate all Assets separate from other securities and investments in the possession of BNY Mellon. Except as otherwise contemplated in this Agreement, BNY Mellon shall have no power or authority to assign, hypothecate, pledge or otherwise dispose of any Securities held in the Account except pursuant to the terms of this Agreement or as provided by applicable law or regulation.

**3.** **AUTHORIZED PERSONS AND INSTRUCTIONS; ELECTRONIC ACCESS** 

**3.1** **Authorized Persons** 

Promptly following the Effective Date, Customer and/or its designee (including any of Customer's investment managers) will furnish BNY Mellon with one or more written lists or other documentation reasonably acceptable to BNY Mellon specifying the names and titles of, or otherwise identifying, all Persons authorized to act on behalf of Customer with respect to this Agreement (each, an "**Authorized Person**"). Customer will be responsible for keeping such lists and/or other documentation current, and will promptly update such lists and/or other documentation as necessary, pursuant to Instructions.

**3.2** **Instructions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except
 as otherwise expressly provided in this Agreement, BNY Mellon will have no obligation
 to take any action hereunder unless and until it receives Instructions issued in accordance
 with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer
 will be responsible for (i) ensuring that only Authorized Persons issue Instructions
 to BNY Mellon on Customer's behalf pursuant to this Agreement, and (ii) adopting
 policies and procedures reasonably designed to ensure that all Authorized Persons safeguard
 and treat with extreme care any user and authorization codes, passwords and authentication
 keys used in connection with the issuance of Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Where
 Customer may or is required to issue Instructions, such Instructions will be issued by
 an Authorized Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) BNY
 Mellon will be entitled to deal with any Authorized Person until notified otherwise pursuant
 to Instructions, and will be entitled to act and rely upon any Instruction received by
 BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) All
 Instructions must include all information necessary, and must be delivered using such
 methods and in such format as the Parties agree and be received within BNY Mellon's
 established cut-off times and otherwise in sufficient time, to enable BNY Mellon to act
 upon such Instructions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) BNY
 Mellon may in its sole discretion decline to act upon any Instructions that do not comply
 with requirements set forth in Section 3.2(e) or that conflict with applicable law or
 regulations or BNY Mellon's operating policies and practices, in which event BNY
 Mellon will promptly notify Customer unless prevented from doing so by applicable law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Customer
 acknowledges that while it is not part of BNY Mellon's normal practices and procedures
 to accept Oral Instructions, BNY Mellon may in certain limited circumstances accept Oral
 Instructions. In such event, such Oral Instructions will be deemed to be Instructions
 for purposes of this Agreement. An Authorized Person issuing such an Oral Instruction
 will promptly confirm such Oral Instruction to BNY Mellon in writing. Notwithstanding
 the foregoing, Customer agrees that the fact that such written confirmation is not received
 by BNY Mellon, or that such written confirmation contradicts the Oral Instruction, will
 in no way affect (i) BNY Mellon's reliance on such Oral Instruction or (ii) the
 validity or enforceability of transactions authorized by such Oral Instruction and effected
 by BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Customer
 acknowledges and agrees that it is fully informed of the protections and risks associated
 with the various methods of transmitting Instructions to BNY Mellon and that there may
 be more secure methods of transmitting Instructions than the method selected by the sender.
 Customer agrees that the security procedures, if any, to be followed by Customer and
 BNY Mellon with respect to the transmission and authentication of Instructions provide
 to Customer a commercially reasonable degree of protection in light of its particular
 needs and circumstances.

**3.3** **BNY Mellon Actions Without Instructions** 

Notwithstanding anything to the contrary set forth in this Agreement, Customer hereby authorizes BNY Mellon, without Instructions, to take any administrative or ministerial actions with respect to the Accounts that it deems reasonably necessary or appropriate to perform its obligations under this Agreement, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Receive
 income and other payments due to the Accounts; provided, however, that BNY Mellon will
 have no duty to pursue collection of any amount due to an Account, including for Securities
 in default, if such amount is not paid when due;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Carry
 out any exchanges of Securities or other corporate actions not requiring discretionary
 decisions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Facilitate
 access by Customer or its designee to ballots or online systems to assist it in the voting
 of proxies received by BNY Mellon in its capacity as custodian for eligible positions
 of Securities held in the Accounts (excluding bankruptcy matters), all of which will
 be exercised by Customer or its designee and not by BNY Mellon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Forward
 to Customer or its designee information (or summaries of information) that BNY Mellon
 receives in its capacity as custodian from Depositories or Subcustodians concerning Securities
 in the Accounts (excluding bankruptcy matters);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Forward
 to Customer or its designee an initial notice of bankruptcy cases relating to Securities
 held in the Accounts and a notice of any required action related to such bankruptcy cases
 as may be received by BNY Mellon in its capacity as custodian. BNY Mellon will take no
 further action nor provide further notification related to the bankruptcy case;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless
 otherwise elected by Customer, and in accordance with BNY Mellon's standard terms
 and conditions, provide class action filing services for settled claims related to Securities
 with industry recognized identifiers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Endorse
 for collection checks, drafts or other negotiable instruments received for the Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Execute
 and deliver, solely in its capacity as custodian, certificates, documents or instruments
 incidental to BNY Mellon's performance under this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Upon
 presentment of a check pursuant to a check redemption process agreed between Customer
 and BNY Mellon, unless otherwise instructed pursuant to instructions, charge the amount
 of the check against the cash held in the Account. If BNY Mellon receives timely instructions
 that a check is not to be honored, BNY Mellon will return the check unpaid.

**3.4** **Funds Transfers** 

With respect to each Instruction for a Cash transfer, when the Instruction is to credit or pay a party by both a name and a unique numeric or alpha-numeric identifier (e.g., IBAN or ABA or account number), BNY Mellon and any other bank participating in the Cash transfer will be entitled to rely solely on such numeric or alpha-numeric identifier, even if it identifies a party different from the party named. Such reliance on an identifier will apply to beneficiaries named in the Instruction, as well as any financial institution that is designated in the Instruction to act as an intermediary in such Cash transfer. To the extent permitted by applicable law, the Parties will be bound by the rules of any transfer system used to effect a Cash transfer under this Agreement.

**3.5** **Electronic Access** 

If Customer elects to use the Electronic Access Services in connection with this Agreement, the use thereof will be subject to any terms and conditions contained in a separate written agreement between the Parties or their Affiliates. If an Authorized Person elects, with BNY Mellon's prior consent, to transmit Instructions through a third-party electronic communications service, BNY Mellon will not be responsible or liable for the reliability or availability of any such service.

**4.** **SUBCUSTODIANS, DEPOSITORIES AND AGENTS** 

**4.1** **Use of Subcustodians and Depositories** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) BNY
 Mellon will be entitled to utilize Subcustodians and Depositories in connection with
 its performance hereunder; provided that BNY Mellon will not utilize a Subcustodian that
 is an "Eligible Foreign Custodian" (as defined in Rule 17f-5 under the 1940
 Act) to hold "Foreign Assets" (as defined in such Rule 17f-5) until after
 BNY Mellon is informed, pursuant to such means as may be mutually agreed upon from time
 to time, that Customer's board of directors or similar governing body or Customer's
 "Foreign Custody Manager" (as defined in such Rule 17f-5) has determined
 that utilization of such Subcustodian satisfies the applicable requirements of such Rule
 17f-5.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) BNY
 Mellon will only utilize Subcustodians that have entered into an agreement with BNY Mellon
 or a BNY Mellon Affiliate, and Assets held through a Subcustodian will be held subject
 to the terms and conditions of such Subcustodian's respective agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Assets
 deposited in a Depository will be held subject to the rules, procedures, terms and conditions
 of such Depository. Subcustodians may hold Assets in Depositories in which such Subcustodians
 participate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) In
 connection with each Depository utilized by BNY Mellon that is a "securities depository"
 (as defined in Rule 17f-4 under the 1940 Act), BNY Mellon (a) will exercise due care
 in accordance with reasonable commercial standards in discharging its duties as a securities
 intermediary to obtain and thereafter maintain Securities or financial assets deposited
 or held in such Depository and (b) will provide, promptly upon request by Customer, such
 reports as are available concerning the internal accounting controls and financial strength
 of BNY Mellon.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) With
 respect to each Foreign Depository, BNY Mellon will exercise reasonable care, prudence
 and diligence (a) to provide Customer with an analysis of the custody risks associated
 with maintaining assets with the Foreign Depository and (b) to
monitor such custody risks on a continuing basis and promptly notify Customer of any material change in such risks. Customer acknowledges
and agrees that such analysis and monitoring will be made on the basis of, and limited by, information gathered from certain Subcustodians
or through publicly available information otherwise obtained by BNY Mellon, and will not include any evaluation of the matters
referenced in Section 14.2(b)(i).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Unless
 otherwise required by local law or practice or a particular Subcustodian agreement, Assets
 deposited with Subcustodians or Depositories may be held in a commingled account in the
 name of, as applicable, BNY Mellon, a BNY Mellon Affiliate or the applicable Subcustodian,
 for its clients.

**4.2** **Liability for Subcustodians** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) BNY
 Mellon will exercise the Standard of Care in selecting, retaining and monitoring Subcustodians.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With
 respect to Assets held by a Subcustodian, BNY Mellon will be liable to Customer for the
 activities of such Subcustodian under this Agreement to the extent that BNY Mellon would
 have been liable to Customer under this Agreement if BNY Mellon had performed such activities
 itself in the relevant market in which such Subcustodian is located; provided, however,
 that with respect to Securities held by a Subcustodian that is not a BNY Mellon Affiliate:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) BNY
 Mellon's liability will be limited solely to the extent resulting directly from
 BNY Mellon's failure to exercise the Standard of Care in selecting, retaining,
 and monitoring such Subcustodian; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) To
 the extent that BNY Mellon is not liable pursuant to Section 4.2(b)(i), BNY Mellon's
 sole responsibility to Customer will be to: (A) take reasonable and appropriate action
 to recover from such Subcustodian, and (B) forward to Customer any amounts so recovered
 (exclusive of costs and expenses incurred by BNY Mellon in connection therewith).

**4.3** **Liability for Depositories** 

BNY Mellon will have no responsibility or liability for the activities of any Depository that is not a BNY Mellon Affiliate arising out of or relating to this Agreement or any cost or burden imposed on the transfer or holding of Assets held with such Depository; for clarity, BNY Mellon remains responsible for its own acts and omissions pursuant to the terms of this Agreement.

**4.4** **Use of Agents** 

BNY Mellon may appoint agents, including BNY Mellon Affiliates, on such terms and conditions as it deems appropriate to perform its obligations hereunder and BNY Mellon shall be liable to Customer for the acts or omissions of a BNY Mellon Affiliate under this Agreement to the same extent that BNY Mellon would have been liable under this Agreement if BNY Mellon had performed such act or omission itself. Except as otherwise specifically provided herein, no such appointment will discharge BNY Mellon from its obligations hereunder.

**5.** **CORPORATE ACTIONS** 

**5.1** **Notification** 

BNY Mellon will notify Customer or its designee of rights or discretionary corporate actions as promptly as practicable under the circumstances, provided that BNY Mellon has actually received, in its capacity as custodian, notice of such right or discretionary corporate action from the relevant issuer, or from a Subcustodian, Depository or third party vendor. Without actual receipt of such notice by BNY Mellon, BNY Mellon will have no responsibility or liability for failing to so notify Customer.

**5.2** **Exercise of Rights** 

Whenever there are voluntary rights that may be exercised or alternate courses of action that may be taken with respect to Securities in an Account, Customer or its designee will be responsible for making any decisions relating thereto and for instructing BNY Mellon to act. In order for BNY Mellon to act, Customer must issue Instructions either: (a) using the BNY Mellon-generated form provided along with BNY Mellon's notice under Section 5.1 or (b) if Customer is not using such BNY Mellon-generated form, clearly indicating, by reference to the options provided on such BNY Mellon-generated form, which action Customer is electing. Each such Instruction will be addressed as BNY Mellon may from time to time request and issued by such time as BNY Mellon will advise Customer or its designee.

**5.3** **Partial Redemptions, Payments, Etc.** 

BNY Mellon will advise Customer or its designee upon its notification, in its capacity as custodian, of a partial redemption, partial payment or other action with respect to a Security affecting fewer than all such Securities held within an Account. If BNY Mellon or any Subcustodian or Depository holds any Securities affected by one of the events described, BNY Mellon or such Subcustodian or Depository may select the Securities to participate in such partial redemption, partial payment or other action in any impartial and non-discriminatory manner that it customarily uses to make such selection.

**6.** **SETTLEMENT** 

**6.1** **Settlement Instructions** 

Promptly after the execution of each Securities transaction hereunder, Customer will issue to BNY Mellon Instructions to settle such transaction. Unless otherwise agreed by BNY Mellon and subject to Section 8.1, Assets will be credited to the relevant Account only when actually received by BNY Mellon.

**6.2** **Settlement Funds** 

For the purpose of settling a Securities transaction hereunder, Customer will provide BNY Mellon with sufficient immediately available funds or Securities, as applicable, in the relevant Account by such time and date as is required to enable BNY Mellon to settle such transaction in the country of settlement and in the currency to be used to settle such transaction.

**6.3** **Settlement Practices** 

Securities transactions will be settled using practices customary in the jurisdiction or market where the transaction occurs. Customer understands that when BNY Mellon is instructed to deliver Securities against payment, delivery of such Securities and receipt of payment related to such Securities may not be completed simultaneously and can also be made without payment. Customer assumes full responsibility for all risks involved in connection with BNY Mellon's delivery of Securities or Cash in accordance with such practices.

**7.** **TAX MATTERS** 

**7.1** **Tax Obligations** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To
 the extent that BNY Mellon has received the Tax Information within the time stipulated,
 BNY Mellon will perform the following services with respect to Tax Obligations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Unless
 prohibited by law or regulation, at the reasonable request of Customer, BNY Mellon will
 provide to Customer such information received by BNY Mellon in its capacity as custodian
 that could, in Customer's reasonable belief, assist Customer or its designee in
 the submission of any reports or returns with respect to Tax Obligations. An Authorized
 Person will inform BNY Mellon in writing as to which party or parties will receive information
 from BNY Mellon;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) BNY
 Mellon will, upon receipt of sufficient Tax Information from Customer (as reasonably
 determined by BNY Mellon), file claims for exemptions or refunds with respect to withheld
 taxes in those markets where it provides such services and subject to BNY Mellon's
 service level description (in each case as made available to Customer from time to time).
 Where Customer (for whatever reason) fails or neglects to provide BNY Mellon with or
 to review and confirm the Tax Information within the time stipulated by BNY Mellon, then
 such failure or neglect may result in the disapplication of withholding tax relief or
 the obligation on Customer to immediately return amounts already refunded by a tax authority.
 Customer may, however, elect to appoint its own tax agent to file claims for exemptions
 or refunds in any or all markets, with advance notice to BNY Mellon of such appointment
 and subject to such terms as separately agreed in writing between Customer and BNY Mellon;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) BNY
 Mellon or the applicable Subcustodian will withhold appropriate amounts, as required
 by applicable tax laws, with respect to amounts received and is authorized to debit the
 relevant Account in the amount of a Tax Obligation and to pay such amount to the appropriate
 taxing authority.

Customer's receipt of the foregoing services is dependent upon its subscription to BNY Mellon's information reporting system, and Customer will be responsible for enrolling its designated Authorized Persons in such system. Customer acknowledges that BNY Mellon may, at any time, amend the scope of its tax service offering and notice of such changes will be made available to BNY Mellon's customers through its information reporting system. Such changes may require additional documentation, attestations or declarations to be entered into by Customer in order to continue receiving the relevant tax service in a particular market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer
 acknowledges that BNY Mellon is a service provider and not an economic beneficiary of
 any transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer
 will be responsible for understanding its Tax Obligations, and will be solely responsible
 and liable for all Tax Obligations with respect to any Assets held on behalf of Customer
 and any transaction related thereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Customer
 will provide BNY Mellon with Tax Information to enable BNY Mellon to comply with BNY
 Mellon's obligations under any applicable tax laws or with any tax authority enquiry.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Customer
 acknowledges and agrees that none of BNY Mellon nor any BNY Mellon Affiliate is a tax
 adviser and none of BNY Mellon nor any BNY Mellon Affiliate will, under any circumstances,
 provide tax advice to Customer. Customer will obtain its own independent tax advice for
 any tax-related matters or Tax Obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Notwithstanding
 anything herein to the contrary, Customer shall not be responsible for a Tax Obligation
 imposed on BNY Mellon in respect of BNY Mellon's own net income.

**7.2** **Payments** 

Where BNY Mellon receives Instructions to make distributions or transfers out of an Account in order to pay Customer's third party service providers, Customer acknowledges that in making such payments BNY Mellon is acting in an administrative capacity, and not as the payor, for tax information reporting and withholding purposes.

**8.** **CREDITS AND ADVANCES** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1** **Contractual Settlement and Income** 

BNY Mellon may, in its sole discretion, as a matter of bookkeeping convenience, credit the relevant Account with the proceeds resulting from the purchase, sale, redemption or other delivery or receipt of Securities, or interest, dividends or other distributions payable on Securities prior to its actual receipt thereof. All such credits will be conditional until BNY Mellon's actual receipt of such proceeds and may be reversed by BNY Mellon to the extent that such proceeds are not received. Actual receipt of proceeds with respect to a transaction will not be deemed to have occurred, and the transaction will not be considered final, until BNY Mellon has received sufficient immediately available funds or Securities specifically applicable to such transaction that, under applicable local law, rule or practice, are irreversible.

**8.2** **Advances** 

If BNY Mellon receives an Instruction that, if processed, would result in an overdraft in an Account, BNY Mellon may, in its sole discretion, advance funds in any currency hereunder; however, BNY Mellon will have no obligation to advance its own funds.

**8.3** **Payment** 

If: (a) BNY Mellon has advanced funds to an Account; (b) an overdraft has occurred in an Account (including overdrafts incurred in connection with the settlement of securities transactions, funds transfers or foreign exchange transactions) or (c) Customer is for any other reason indebted to BNY Mellon under this Agreement, Customer agrees to pay BNY Mellon on demand) the amount of such advance, overdraft or indebtedness, plus accrued interest at a rate then charged by BNY Mellon to its institutional custody clients in the relevant currency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.4** **Securing Payment** 

In order to secure payment of Customer's obligations (whether or not matured) to BNY Mellon or a BNY Mellon Affiliate pursuant to this Agreement (the "**Obligations**"), and in addition to any preference, lien or other rights and security interest to which BNY Mellon may be entitled under applicable law, Customer hereby pledges and grants to BNY Mellon, and agrees BNY Mellon will have to the maximum extent permitted by law, a continuing first lien and security interest in: (a) all of Customer's right, title and interest in and to the Account and the Assets now or hereafter held in such Account (including proceeds thereof) and (b) any other property at any time held by BNY Mellon or any BNY Mellon Affiliate pursuant to this Agreement; in each case, as is necessary for repayment of the Obligations. Notwithstanding the foregoing Customer does not hereby grant a security interest in any Securities issued by an affiliate (as defined in Section 23A of the U.S. Federal Reserve Act) of BNY Mellon. Customer represents, warrants and covenants that it owns the Assets in the Accounts, free and clear of all liens, claims and security interests (except for those granted in accordance with this Agreement or as otherwise acknowledged in writing by BNY Mellon or otherwise provided for herein), and that the first lien and security interest granted herein will be subject to no setoffs, counterclaims or other liens prior to or on a parity with it in favor of any third party (other than specific liens granted preferred status by statute). Customer will take any additional steps required to assure BNY Mellon of such priority security interest, including notifying third parties or obtaining their consent. BNY Mellon will be entitled to collect from the relevant Account sufficient Cash for reimbursement of Obligations, and if such Cash is insufficient, to sell Securities in such Account to the extent necessary to obtain reimbursement for such Obligations. In this regard, BNY Mellon will be entitled to all the rights and remedies of a pledgee, secured creditor and/or securities intermediary under applicable laws, rules and regulations as then in effect as if Customer is in default. Except as otherwise provided for in this Agreement, none of BNY Mellon, any Subcustodian nor any agent appointed by BNY Mellon hereunder shall have no right to pledge, encumber, hypothecate, rehypothecate, transfer, dispose of or otherwise grant to any third party an interest in any Securities held pursuant to this Agreement.

**8.5** **Setoff** 

BNY Mellon has the right to debit any Cash for any amount payable by Customer in connection with any and all obligations (whether or not matured) of Customer to BNY Mellon or any BNY Mellon Affiliate, relating to or arising in connection with this Agreement. In addition to the rights of BNY Mellon or such BNY Mellon Affiliate under applicable law or any other agreement, at any time when Customer has not honored any of its Obligations, BNY Mellon will have the right with reasonable contemporaneous notice to Customer to retain or set-off against any obligations any cash BNY Mellon or any BNY Mellon Affiliate may directly or indirectly hold for Customer in connection with this Agreement, and any obligations (whether or not matured) that BNY Mellon or any BNY Mellon Affiliate may have in any currency in connection with this Agreement. Any such cash or obligation may be transferred to BNY Mellon and any BNY Mellon Affiliate in order to effect the above rights. For the avoidance of doubt, BNY Mellon acknowledges and agrees that it shall not exercise the rights and remedies set forth in this Section 8.5 with respect to any obligations of Customer to BNY Mellon that do not arise in connection with this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.6** **Currency Conversion** 

BNY Mellon is hereby authorized to effect any necessary currency conversions in order to exercise its rights under this Section 8 at BNY Mellon's own rate of exchange then prevailing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.** **STATEMENTS; BOOKS AND RECORDS; THIRD PARTY DATA** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** **Statements** 

BNY Mellon will make available to Customer, through the Electronic Access Services, a daily statement (or report for such other time period as the Parties may agree upon from time to time) reflecting all transfers to or from the Accounts during such month and all holdings in the Accounts as of the last business day of such month (or as of such other date(s) as the Parties may agree upon from time to time). Customer will promptly review each such statement and, within ninety (90) days of when such statement is made available by BNY Mellon, notify BNY Mellon of any exception or objection thereto. Notwithstanding the foregoing, Customer may notify BNY Mellon of any such exceptions or objections at any time; provided, however, that BNY Mellon will, absent fraud or bad faith, not be responsible or liable for any losses that could have been mitigated had such notice been provided during such ninety (90) day period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** **Books and Records** 

The books and records, directly pertaining to the Accounts, which are in the possession of BNY Mellon will be the property of Customer. Such books and records will be prepared and maintained as required by the 1940 Act and the rules thereunder. BNY Mellon will identify on its books and records the Assets belonging to Customer whether held directly or indirectly through Subcustodians or Depositories. Securities held in the Accounts will be held in registered form in the name of BNY Mellon or one of its nominees and will be segregated on BNY Mellon's books and records from BNY Mellon's own property. Customer and its authorized representatives will have the right, at Customer's own expense and with reasonable prior written notice to BNY Mellon, to have reasonable access to those books and records directly pertaining to the Accounts. Any such access will occur during BNY Mellon's normal business hours and will be subject to BNY Mellon's applicable security policies and procedures. Upon Customer's reasonable request, copies of those books and records directly pertaining to the Accounts will be provided by BNY Mellon to Customer or its authorized representative (including, without limitation, Customer's independent registered public accounting firm).

**9.3** **Third Party Data** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer
 acknowledges that BNY Mellon will be receiving, utilizing and relying on Market Data
 and other data provided by Customer and/or by third parties in connection with its performance
 of the services hereunder (collectively, "**Third Party Data** "). BNY
 Mellon is entitled to rely without inquiry on all Third Party Data provided to BNY Mellon
 hereunder (and all Instructions related to Third Party Data), and BNY Mellon makes no
 assurances or warranties in relation to the accuracy or completeness of Third Party Data
 and will not be responsible or liable for any losses or damages incurred as a result
 of any Third Party Data that is inaccurate or incomplete. BNY Mellon may follow Instructions
 with respect to Third Party Data, even if such Instructions direct BNY Mellon to override
 its usual procedures and data sources or if BNY Mellon, in performing services for itself
 or others (including services similar to those performed for Customer), receives different
 Third Party Data for the same or similar Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Although
 statements and reports provided by BNY Mellon hereunder with respect to the Accounts
 may contain values of, and pricing information in relation to, Securities held pursuant
 to this Agreement, BNY Mellon does not undertake any duty or responsibility under this
 Agreement to report such values or pricing information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Certain
 Market Data may be the intellectual property of Market Data Providers, which impose additional
 terms and conditions upon Customer's use of such Market Data. Such additional terms
 and conditions can be found on the Data Terms Website. Customer agrees to those terms
 and conditions as they are posted on the Data Terms Website from time to time.

**10.** **DISCLOSURES** 

**10.1** **Required Disclosure** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) With
 respect to Securities that are registered under the U.S. Securities Exchange Act of 1934,
 as amended, or that are issued by an issuer registered under the 1940 Act, the U.S. Shareholder
 Communications Act of 1985 (the "**Act**") requires BNY Mellon to disclose
 to issuers of such Securities, upon their request, the name, address and securities position
 of BNY Mellon's clients who are "beneficial owners" (as defined in
 the Act) of the issuer's Securities, unless the beneficial owner objects to such
 disclosure. The Act defines a "beneficial owner" as any person who has or
 shares the power to vote a security (pursuant to an agreement or otherwise) or who directs
 the voting of a security. Customer has designated on the signature page hereof whether
 (i) as beneficial owner, it objects to the disclosure of its name, address and securities
 position to any U.S. issuer that requests such information pursuant to the Act for the
 specific purpose of direct communications between such issuer and Customer or (ii) it
 requires BNY Mellon to contact the relevant investment manager with respect to relevant
 Securities to make the decision as to whether it objects to the disclosure of the beneficial
 owner's name, address and securities position to any U.S. issuer that requests
 such information pursuant to the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With
 respect to certain Securities issued outside the United States, BNY Mellon may disclose
 information to issuers of Securities as required by the organizational documents of the
 relevant issuer or in accordance with local market practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) In
 connection with any disclosure contemplated by this Section 10, Customer agrees to promptly
 supply BNY Mellon with any such required information.

**10.2** **Foreign Exchange Transactions** 

In connection with this Agreement, Customer may enter into foreign exchange transactions (including foreign exchange hedging transactions) with BNY Mellon or a BNY Mellon Affiliate acting as a principal or otherwise through customary channels. Customer may issue standing Instructions with respect to any such foreign exchange transactions, subject to any rules or limitations that may apply to any foreign exchange facility made available to Customer. With respect to any such foreign exchange transactions, BNY Mellon or such BNY Mellon Affiliate is acting as a principal counterparty on its own behalf and is not acting as a fiduciary or agent for, or on behalf of, Customer or any Account.

**10.3** **Investment of Cash** 

In connection with this Agreement, Customer may issue standing Instructions to invest Cash in one or more sweep investment vehicles. Such investment vehicles may be offered by a BNY Mellon Affiliate or by a client of BNY Mellon, and BNY Mellon may receive compensation therefrom. By making investment vehicles available, BNY Mellon and its Affiliates will not be deemed to have recommended, endorsed or guaranteed any such investment vehicle in any way or otherwise to have acted as a fiduciary or agent for, or on behalf of, Customer, its investment manager or any Account. BNY Mellon will have no liability for any loss incurred on any such investments, absent BNY Mellon's violation of the Standard of Care in connection with the implementation of a standing Instruction directing the investment of cash in one or more sweep investment vehicles. Customer understands that Cash may be uninvested if it is received or reconciled to an Account after the applicable deadline to be swept into Customer's selected investment vehicle.

**11.** **REGULATORY MATTERS**

**11.1** **USA PATRIOT Act** 

Section 326 of the U.S. Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001 (including its implementing regulations) requires BNY Mellon to implement a customer identification program pursuant to which BNY Mellon must obtain certain information from Customer in order to verify Customer's identity prior to establishing an Account. Accordingly, prior to establishing an Account, Customer will be required to provide BNY Mellon with certain information, including Customer's name, physical address, tax identification number and other pertinent identifying information, to enable BNY Mellon to verify Customer's identity. Customer acknowledges that BNY Mellon cannot establish an Account unless and until BNY Mellon has successfully performed such verification.

**11.2** **Sanctions; Anti-Money Laundering** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Throughout
the term of this Agreement, Customer: (i) will have in place and will implement policies and procedures designed to prevent violations
of Sanctions, including measures to accomplish effective and timely scanning of all relevant data with respect to its clients
(to the extent the Assets are client assets) and with respect to incoming or outgoing assets or transactions relating to this
Agreement; (ii) will ensure that neither Customer nor any of its Affiliates, directors, officers, employees or clients (to the
extent the Assets are client assets) is an individual or entity that is, or is owned or controlled by an individual or entity
that is: (A) the target of Sanctions or (B) located, organized or resident in a country or territory that is, or whose government
is, the target of Sanctions and (iii) will not, directly or indirectly, use the Accounts in any manner that would result in a
violation by Customer or BNY Mellon of Sanctions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer
 acknowledges and agrees that, in connection with the services provided by BNY Mellon
 under this Agreement, each of Customer's investors is not a customer or joint customer
 with BNY Mellon. Customer (and not BNY Mellon) has the responsibility to, and will, fulfill
 any compliance requirement or obligation with respect to each of its investors under
 all Anti-Money Laundering Laws. Without limiting any obligation imposed on Customer by
 Anti-Money Laundering Laws, throughout the term of this Agreement, Customer will maintain
 a compliance program with respect to its investors that includes the following: (i) a
 know-your-customer program in order to understand and verify the identity of each investor,
 in accordance with the requirements of the Bank Secrecy Act and the relevant regulations
 thereunder, (ii) a transaction surveillance and monitoring program, and (iii) a
policy for identifying and reporting any suspicious transactions and/or activities with respect to each investor to the appropriate
law enforcement and regulatory authorities and to BNY Mellon where related to the services provided by BNY Mellon hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer
 will promptly provide to BNY Mellon such information as BNY Mellon reasonably requests
 in connection with the matters referenced in this Section 11.2, including information
 regarding (i) the Accounts, (ii) the Assets and the source thereof, (iii) the identity
 of any individual or entity having or claiming an interest therein, including any investor,
 and (iv) Customer's anti-money laundering and Sanctions compliance programs and
 any related records and/or transaction information, including with respect to any investor,
 regardless of whether such request is made under USA PATRIOT Act Section 314(b) (where
 applicable). Customer will cooperate with BNY Mellon and provide assistance reasonably
 requested by BNY Mellon in connection with any anti-money laundering and terrorist financing
 or Sanctions inquiries. Prior to delivering to BNY Mellon the assets of any investor,
 Customer will obtain from each such investor, and will continue to maintain in effect
 throughout the term of this Agreement, any consents or waivers that may be required under
 applicable law in order to comply with the foregoing obligations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) BNY
 Mellon may decline to act or provide services in respect of any Account, and take such
 other actions as it, in its reasonable discretion, deems necessary or advisable, in connection
 with the matters referenced in this Section 11.2. If BNY Mellon declines to act or provide
 services as provided in the preceding sentence, except as otherwise prohibited by applicable
 law or official request, BNY Mellon will inform Customer as soon as reasonably practicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) While
 Customer remains responsible for the matters set forth in Section 11.2(a) and Section
 11.2(b), it is noted that certain duties relating to such matters may be delegated by
 Customer to its transfer agent service provider.

**12.** **COMPENSATION** 

**12.1** **Fees and Expenses** 

In consideration of BNY Mellon's services provided hereunder, Customer will (a) pay to BNY Mellon the fees set forth in the agreed upon fee schedule (as such fee schedule may be amended by BNY Mellon from time to time upon sixty (60) days' prior written notice to Customer) and (b) reimburse BNY Mellon for any out-of-pocket and incidental expenses incurred by BNY Mellon in connection therewith. Unless otherwise agreed by the Parties, such amounts will be payable to BNY Mellon within thirty (30) days of Customer's receipt of the relevant invoice. Without limiting BNY Mellon's other rights set forth in this Agreement, BNY Mellon may charge interest on overdue amounts at a rate then charged by BNY Mellon to its institutional custody clients in the relevant currency. Notwithstanding the foregoing, Customer will not be liable for out-of-pocket expenses if such expenses arose as a result of BNY Mellon's material breach of its Standard of Care.

**12.2** **Other Compensation** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer
 acknowledges that, as part of BNY Mellon's compensation, BNY Mellon will earn interest
 on Cash balances held by BNY Mellon (including disbursement balances, balances arising
 from purchase and sale transactions and when Cash otherwise remains uninvested) as provided
 in BNY Mellon's compensation disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Where
 an error or omission has occurred under this Agreement that results in an unintended
 gain, provided that Customer is put in the same or equivalent position as it would have
 been in had such error or omission not occurred, any such gain will be solely for the
 account of BNY Mellon without any duty to report such gain to Customer.

**13.** **REPRESENTATIONS, WARRANTIES AND COVENANTS** 

**13.1** **BNY Mellon** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) BNY
 Mellon represents and warrants that: (a) it is duly organized, validly existing and in
 good standing in its jurisdiction of organization; (b) it has the requisite corporate
 power and authority to enter into and to carry out the terms of this Agreement and (c)
 the individual executing this Agreement on its behalf has the requisite authority to
 bind BNY Mellon to this Agreement including by Electronic Signature, and any such Electronic
 Signature represents an intent to enter into this Agreement and an agreement with its
 terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) BNY
 Mellon represents and warrants that it is a bank with the qualifications prescribed in
 Section 17(f)(1)(A) of the 1940 Act as of the date hereof and it shall confirm such qualifications
 in writing to Customer upon the request of Customer.

**13.2** **Customer** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer
 represents and warrants that: (i) it is duly organized, validly existing and in good
 standing in its jurisdiction of organization; (ii) it has the requisite corporate power
 and authority to enter into and to carry out the terms of this Agreement; and (iii) the
 individual executing this Agreement on its behalf has the requisite authority to bind
 Customer to this Agreement including by Electronic Signature, and any such Electronic
 Signature represents an intent to enter into this Agreement and an agreement with its
 terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Customer
 represents, warrants and covenants that (i) it or the relevant investment manager has
 determined that the custody arrangements of each Depository maintaining "Foreign
 Assets" (as defined in Rule 17f-5 under the 1940 Act) provide reasonable safeguards
 against the custody risks associated with maintaining assets with such Depository within
 the meaning of Rule 17f-7 under the 1940 Act. and (ii) it shall manage its borrowings,
 including without limitation any advance or overdraft (including any daylight overdraft)
 in an Account, so that the aggregate of its total borrowings do not exceed the amount
 it is permitted to borrow under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Customer
 represents and warrants that all actions taken, or to be taken, by or on behalf of Customer
 in connection with establishing, maintaining, operating or terminating Customer (including,
 any offer, sale or distribution of the shares of, or interest in, Customer) shall be
 done in compliance with all applicable U.S. state and federal securities laws and regulations
 and all other applicable laws and regulations of all applicable jurisdictions.

**14.** **LIABILITY** 

**14.1** **Standard of Care** 

In performing its duties under this Agreement, BNY Mellon will exercise the standard of care and diligence that a professional custodian would observe in these affairs taking into account the prevailing rules, practices, procedures and circumstances in the relevant market ("**Standard of Care**").

**14.2** **Limitation of Liability** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) BNY
 Mellon's liability arising out of or relating to this Agreement will be limited
 solely to those direct damages that are caused by BNY Mellon's or a BNY Mellon
 Affiliate's failure to perform its obligations under this Agreement in accordance
 with the Standard of Care. In no event will BNY Mellon or Customer be liable for any
 indirect, incidental, consequential, exemplary, punitive or special losses or damages,
 or for any loss of revenues, profits or business opportunity, arising out of or relating
 to this Agreement (whether or not foreseeable and even if such Party has been advised
 of the possibility of such losses or damages) it being understood that Customer's
 obligations in Section 14.4 are not considered indirect, incidental, consequential, exemplary,
 punitive or special losses or damages, or for any loss of revenues, profits or business
 opportunity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding
 anything to the contrary set forth in this Agreement, in no event will BNY Mellon be
 liable for any losses or damages arising out of any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Customer's
 or an Authorized Person's decision to invest in or hold Assets in any particular
 country, including any losses or damages arising out of or relating to: (A) the financial
 infrastructure of a country; (B) a country's prevailing custody and settlement
 practices; (C) nationalization, expropriation or other governmental actions; (D) a country's
 regulation of the banking or securities industry; (E) currency and exchange controls,
 restrictions, devaluations, redenominations, fluctuations or asset freezes; (F)
laws, rules, regulations or orders that at any time prohibit or impose burdens or costs on the transfer of Assets to, by or for
the account of Customer or (G) market conditions which affect the orderly execution of securities transactions or affect the value
of securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) BNY
 Mellon's reliance on Instructions; provided, however, that BNY Mellon shall remain
 liable to Customer to the extent BNY Mellon acted negligently, fraudulently or with willful
 misconduct solely with respect to its implementation of any such Instructions in respect
 of Customer's Accounts or Assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) BNY
 Mellon's receipt or acceptance of fraudulent, forged or invalid Securities (or
 Securities which are otherwise not freely transferable or deliverable without encumbrance
 in any relevant market);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) For
 any matter with respect to which BNY Mellon is required to act only upon the receipt
 of Instructions, (A) BNY Mellon's failure to act in the absence of such Instructions
 or (B) Instructions that are late or incomplete or do not otherwise satisfy the requirements
 of Section 3.2(e), whether or not BNY Mellon acted upon such Instructions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) BNY
 Mellon receiving or transmitting any data to or from Customer or any Authorized Person
 via any non-secure method of transmission or communication selected by Customer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Customer's
 or an Authorized Person's decision to invest in Securities or to hold Cash in any
 currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The
 insolvency of any Person, including a Subcustodian that is not a BNY Mellon Affiliate,
 Depository, broker, bank or a counterparty to the settlement of a transaction or to a
 foreign exchange transaction, except to the extent arising directly from BNY Mellon's
 failure to exercise the Standard of Care in selecting, retaining, and monitoring a Subcustodian
 that is not a BNY Mellon Affiliate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Any
 inability of BNY Mellon, a Subcustodian or any of their respective agents to file claims
 for exemptions or refunds or otherwise obtain relief from Tax Obligations due to (A)
 Customer's failure to provide, or delay in providing, Tax Information to BNY Mellon,
 (B) any failure of Customer to comply with applicable tax laws, or (C) any failure or
 refusal of any taxing authority to provide such relief.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If
 BNY Mellon is in doubt as to any action it should or should not take, either pursuant
 to, or in the absence of, Instructions, BNY Mellon may obtain the advice of either reputable
 external counsel of its own choosing or external counsel to Customer, and BNY Mellon
 will not be liable for acting in accordance with such advice; provided that, any action
 taken by BNY Mellon must be consistent with BNY Mellon's rights and responsibilities
 under this Agreement.

**14.3** **Force Majeure** 

Neither party will be responsible or liable to the other party for any failure or delay in the performance of its obligations under this Agreement to the extent caused, directly or indirectly, by natural disasters, fire, acts of God, strikes or other labor disputes, work stoppages, acts of war or terrorism, general civil unrest, actual or threatened epidemics, disease, act of any government, governmental authority or police or military authority, declared or threatened state of emergency, legal constraint, the interruption, loss or malfunction of utilities or transportation, communications or computer systems, or any other similar events beyond its reasonable control. Such party will promptly notify the other Party upon the occurrence of any such event and will use commercially reasonable efforts to minimize the effect of any such events.

**14.4** **Indemnification** 

Customer will indemnify and hold harmless BNY Mellon from and against all losses, costs, expenses, damages and liabilities (including reasonable external counsel fees and expenses) incurred by BNY Mellon arising out of or relating to BNY Mellon's performance under this Agreement, except to the extent resulting from BNY Mellon's failure to perform its obligations under this Agreement in accordance with the Standard of Care. The Parties agree that the foregoing will include reasonable external counsel fees and expenses incurred by BNY Mellon in its successful defense of claims that are asserted by Customer against BNY Mellon arising out of or relating to BNY Mellon's performance under this Agreement.

**15.** **CONFIDENTIALITY** 

**15.1** **Confidentiality Obligations** 

Each Party agrees to use the Confidential Information of the other Party solely to extent necessary to accomplish the purposes of this Agreement and, except in connection with such purposes or as otherwise permitted herein, not to disclose such information to any other Person without the prior written consent of the other Party. Notwithstanding the foregoing, BNY Mellon may: (a) use Customer's Confidential Information in connection with certain functions performed on a centralized basis by BNY Mellon, its Affiliates and joint ventures and their service providers who are subject to confidentiality obligations with respect to such information (including audit, accounting, risk, legal, compliance, sales, administration, product communication, relationship management, compilation and analysis of customer-related data and storage); (b) disclose such information to its Affiliates and joint ventures and to its and their service providers who are subject to confidentiality obligations and (c) store the names and business contact information of Customer's employees and representatives relating to this Agreement on the systems or in the records of its Affiliates and joint ventures and its and their service providers. In addition, BNY Mellon may aggregate information regarding Customer and the Accounts on an anonymized basis with other similar client data for BNY Mellon's and its Affiliates' reporting, research, product development and distribution, and marketing purposes. BNY Mellon shall instruct its employees, regulators, examiners, internal and external accountants, internal and external auditors, and counsel, and instruct any affiliate, delegee or agent to instruct its employees, internal and external accountants, internal and external auditors, and counsel, who may be afforded access to Confidential Information of such obligations of confidentiality, and shall not use the Confidential Information for any purpose other than the provision of services hereunder or as otherwise set forth in this Agreement.

**15.2** **Exceptions** 

The Parties' respective obligations under Section 15.1 will not apply to any such information: (a) that is, as of the time of its disclosure or thereafter becomes, publicly available through a source other than the receiving Party; (b) that was known to the receiving Party as of the time of its disclosure and was not otherwise subject to confidentiality obligations; (c) that is independently developed by the receiving Party without reference to such information; (d) that is subsequently learned from a third party not known to be under a confidentiality obligation to the disclosing Party or (e) that is required to be disclosed pursuant to applicable law, rule, regulation, requirement of any law enforcement agency, court order or other legal process or at the request of a regulatory authority.

**16.** **TERM AND TERMINATION** 

**16.1** **Term** 

The term of this Agreement will commence on the Effective Date and will continue in effect until terminated in accordance with the provisions herein.

**16.2** **Termination** 

Each Party may terminate this Agreement by giving to the counter-Party a notice in writing specifying the date of such termination, which will be not less than ninety (90) days after the date of such notice.

**16.3** **Effect of Termination** 

Upon termination hereof, Customer will promptly (but in no event more than thirty (30) days) pay to BNY Mellon such compensation as may be due to BNY Mellon, and will reimburse BNY Mellon for other amounts payable or reimbursable to BNY Mellon hereunder, in each case, through the date of termination, subject to the terms of this Agreement. BNY Mellon will follow such reasonable Instructions as Customer issues concerning the transfer of custody of records, Assets and other items; provided that (a) BNY Mellon will have no responsibility or liability for shipping and insurance costs associated therewith and (b) full payment has been made to BNY Mellon of its compensation, costs, expenses and other amounts to which it is entitled hereunder. If any Assets remain in any Account after termination, BNY Mellon may deliver to Customer or a designee appointed by the Customer, such Assets. The terms of this Agreement (including the terms relating to fees payable to BNY Mellon) will continue to apply from day to day until any transferable Asset is transferred in accordance with this Section, except that no additional Cash or Securities may be deposited with BNY Mellon or any Subcustodian after such date other than with BNY Mellon's express prior consent, and Customer will have a continuing obligation to provide BNY Mellon as soon as reasonably practicable with the details of the Person or Persons to whom the remaining Assets are to be transferred.

**16.4** **Survival** 

Any and all provisions of this Agreement which by their nature or effect are required or intended to be observed, kept or performed after the expiration or termination of this Agreement will survive the expiration or any termination of this Agreement and remain binding upon and for the Parties' benefit, including Section 13 (Representations, Warranties and Covenants); Section 14 (Liability); Section 15 (Confidentiality); Section 16.3 (Effect of Termination); Section 16.4 (Survival) and Section 17.4 (Governing Law/Forum).

**17.** **GENERAL** 

**17.1** **Non-Custody Assets** 

At Customer's request pursuant to Instructions, subject to BNY Mellon's approval and as an accommodation to Customer, BNY Mellon will provide consolidated recordkeeping services reflecting on statements provided to Customer securities and other assets not held by BNY Mellon ("**Non-Custody Assets**"). Non-Custody Assets will be designated on BNY Mellon's books as "assets not held in custody" or by other similar designation and will not constitute Assets for purposes of this Agreement. Customer acknowledges and agrees that, notwithstanding anything contained elsewhere in this Agreement, (a) Customer will have no security entitlement against BNY Mellon with respect to Non-Custody Assets; (b) BNY Mellon will rely, without independent verification, on information provided by Customer or its designee regarding Non-Custody Assets (including positions and market valuations) and (c) BNY Mellon will have no responsibility whatsoever with respect to Non -Custody Assets or the accuracy of any information maintained on BNY Mellon's books or set forth on account statements concerning Non-Custody Assets.

**17.2** **Assignment** 

Neither Party may, without the other Party's prior written consent, assign any of its rights or delegate any of its duties under this Agreement (whether by change of control, operation of law or otherwise); provided, however that BNY Mellon may, without the prior written consent of Customer, assign this Agreement or any of its rights, or delegate any of its duties hereunder: (a) to any BNY Mellon Affiliate; (b) to any successor to the business of BNY Mellon to which this Agreement relates, in which event BNY Mellon agrees to provide notice of such successor to Customer or (c) as otherwise permitted in this Agreement; provided further that any entity to which this Agreement is assigned by BNY Mellon without the prior written consent of Customer pursuant to a foregoing item (a), (b) or (c) will satisfy the requirements for serving as a custodian for an investment company registered under the 1940 Act. Any purported assignment or delegation by a Party in violation of this provision will be voidable at the option of the other Party. This Agreement will be binding upon, and inure to the benefit of, the Parties and their respective permitted successors and assigns.

**17.3** **Amendment** 

This Agreement may be amended or modified only in a written agreement signed by an authorized representative of each Party. For purposes of the foregoing, email exchanges between the Parties will not be deemed to constitute a written agreement.

**17.4** **Governing Law/Forum** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The
 substantive laws of the state of New York (without regard to its conflicts of law provisions)
 will govern all matters arising out of or relating to this Agreement, including the establishment
 and maintenance of the Accounts and for purposes of the Uniform Commercial Code and all
 issues specified in Article 2(1) of the Hague Securities Convention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Each
 Party irrevocably agrees that all legal actions or proceedings brought by it against
 the other Party arising out of or relating to this Agreement will be brought solely and
 exclusively before the state or federal courts situated in New York City, New York. Each
 Party irrevocably submits to personal jurisdiction in such courts and waives any objection
 which it may now or hereafter have based on improper venue or *forum non conveniens*.
 The Parties hereby unconditionally waive, to the fullest extent permitted by applicable
 law, any right to a jury trial with respect to any such actions or proceedings.

**17.5** **Business Continuity/Disaster Recovery** 

BNY Mellon will implement business continuity and disaster recovery plans designed to minimize interruptions of service and ensure recovery of systems and applications used to provide the services under this Agreement. Such plans will cover the facilities, systems, applications and employees that are critical to the provision of the services hereunder, and will be tested at least annually to validate whether the recovery strategies, requirements, and protocols are viable and sustainable.

**17.6** **Non-Fiduciary Status** 

Customer hereby acknowledges and agrees that BNY Mellon is not a fiduciary by virtue of accepting and carrying out its obligations under this Agreement and has not accepted any fiduciary duties, responsibilities or liabilities with respect to its services hereunder, including with respect to the management, investment advisory or sub-advisory functions of Customer.

**17.7** **Notices** 

Other than routine communications in the ordinary course of providing or receiving services hereunder (including Instructions), notices given hereunder will be: (a) addressed to BNY Mellon or Customer at the address set forth on the signature page (or such other address as either Party may designate in writing to the other Party) and (b) sent by hand delivery, by certified mail, return receipt requested, or by overnight delivery service, in each case with postage or charges prepaid. All notices given in accordance with this Section will be effective upon receipt.

**17.8** **Entire Agreement** 

This Agreement constitutes the sole and entire agreement among the Parties with respect to the matters dealt with herein, and merges, integrates and supersedes all prior and contemporaneous discussions, agreements and understandings between the Parties, whether oral or written, with respect to such matters.

**17.9** **No Third Party Beneficiaries** 

This Agreement is entered into solely between, and may be enforced only by, the Parties. Each Party intends that this Agreement will not, and no provision of this Agreement will be interpreted to, benefit, or create any right or cause of action in or on behalf of, any party or entity other than the Parties.

**17.10** **Counterparts** 

This Agreement may be executed in any number of counterparts, either manually or by Electronic Signature, each of which will be deemed an original, and said counterparts when taken together will constitute one and the same instrument and may be sufficiently evidenced by one set of counterparts. Executed counterparts may be delivered by facsimile or email.

**17.11** **Interpretation** 

The terms and conditions of this Agreement are the result of negotiations between the Parties. The Parties intend that this Agreement will not be construed in favor of or against a Party by reason of the extent to which such Party or its professional advisors participated in the preparation or drafting of this Agreement.

**17.12** **No Waiver** 

No failure or delay by a Party to exercise any right, remedy or power it has under this Agreement will impair or be construed as a waiver of such right, remedy or power. A waiver by a Party of any provision or any breach of any provision will not be construed to be a waiver by such Party of such provision in any other instance or any succeeding breach of such provision or a breach of any other provision.

**17.13** **Headings** 

All section and subsection headings in this Agreement are included for convenience of reference only and will not be considered in the interpretation of the scope or intent of any provision of this Agreement.

**17.14** **Severability** 

If at any time any provision of this Agreement becomes, or is deemed by an authority of competent jurisdiction to be, invalid, unenforceable or contrary to applicable law, neither the legality, validity or enforceability of the remaining provisions of the Agreement nor the legality, validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired by such provision. In such case, the Parties will negotiate in good faith to replace each illegal, invalid or unenforceable provision with a valid, legal and enforceable provision that fulfills as closely as possible the original intent of the Parties.

**17.15** **Information Security** 

BNY Mellon shall implement and maintain an information security program ("**ISP**") with written policies and procedures reasonably designed to protect the confidentiality and integrity of Customer's Confidential Information provided to BNY Mellon in accordance with this Agreement and when in BNY Mellon's possession or under BNY Mellon's control ("**Customer Data**"). The ISP will include administrative, technical and physical safeguards, appropriate to the type of Customer Data concerned, reasonably designed to: (i) maintain the integrity, confidentiality and availability of Customer Data; (ii) protect against anticipated threats or hazards to the security or integrity of Customer Data; (iii) protect against unauthorized access to or use of Customer Data that could result in substantial harm or inconvenience to Customer or its clients; and (iv) provide for secure disposal of Customer Data. BNY Mellon's ISP is dynamic and may be modified to address technological changes or changes in the threat landscape, BNY Mellon's business activities or other factors. BNY Mellon reserves the right to modify the ISP at any time, provided that BNY Mellon shall not diminish the overall level of protection afforded herein. In the event of a declared Security Incident, BNY Mellon will (i) promptly notify Customer, (ii) provide updates to Customer regarding BNY Mellon's response and (iii) use reasonable efforts to implement measures designed to prevent a reoccurrence of Security Incidents of a similar nature. For purposes of this section 17.15, "**Security Incident**" shall mean any known successful attempt to gain unauthorized access to, or disrupt or misuse a component of BNY Mellon's network that directly impacts its provision of the services or any known unsuccessful attempt to do the same that in BNY Mellon's reasonable determination is sufficiently serious enough to notify Customer.

[Signature page follows]

**IN WITNESS WHEREOF**, the Parties have executed this Agreement as of the Effective Date.

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| | |
|:---|:---|
| **THE BANK OF NEW YORK MELLON** | **SABA CAPITAL INCOME & **OPPORTUNITIES FUND** |

---

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| | | | |
|:---|:---|:---|:---|
| By: | ![](ex99j2002.jpg) | By: | ![](ex99j2003.jpg) |

---

Name: <u>Jonathan Diaz</u> Name: <u>Michael D'Angelo, COO</u>

Title: <u>Authorized Signor</u> Title:  

Date: <u>June 4, 2021</u> Date: <u>June 4, 2021</u>

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| | |
|:---|:---|
| **Address for Notice:** | **Address for Notice:** |
| The Bank of New York Mellon | Saba Capital Income & Opportunities Fund |
| | <u>405 Lexington Avenue, 58th Floor</u>, NY, NY 10174 |

---

Attention:   Attention: <u>Michael D'Angelo, COO</u>

Pursuant to Section 10.1(a):

[x] as beneficial owner, Customer OBJECTS to disclosure

[ ] as beneficial owner, Customer DOES NOT OBJECT to disclosure

[ ] BNY Mellon will CONTACT THE RELEVANT INVESTMENT MANAGER with respect to relevant Securities to make the decision whether it objects to disclosure

IF NO BOX IS CHECKED, BNY MELLON <u>WILL RELEASE</u> SUCH INFORMATION UNTIL IT RECEIVES A CONTRARY INSTRUCTION FROM CUSTOMER.

BNY Mellon 40 Act Fund Custody (revised 03.29.2021)

**EXHIBIT A**

**DOCUMENT CUSTODY SERVICES ADDENDUM**

**TO CUSTODY AGREEMENT**

This Document Custody Services Addendum to Custody Agreement ("**Addendum**") contains additional provisions which apply whenever a Customer delivers to BNY Mellon any uncertificated securities which are registered in a name other than that of BNY Mellon or one of its nominees or similar investment-related documentation, or concerns the issuer of any such securities (including information relating to investments in any such securities). The provisions of this Addendum shall be considered part of the Custody Agreement (the "**Agreement**") and shall be enforceable in accordance with the terms of such Agreement. In the event of a conflict between the terms hereof and the Agreement, this Addendum shall control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Definitions.** For purposes of the Agreement and this Addendum, the following definitions shall apply:

**"Documentation**" shall mean, for each Private Investment (as defined below) for which a Customer physically delivers an Investment File to the BNY Mellon, all documents and instruments that may include the related Private Investment (but excluding any physical certificates evidencing ownership of a Security), including any subscription agreements, loan documents (including each loan agreement, promissory note, participation certificate, collateral security agreement, guarantee or supporting obligation), partnership certificates, membership agreements or such other agreements or documents as may be mutually agreed between the parties from time to time.

**"Investment File"** shall mean an unsealed hard copy file, which the applicable Customer represents contains Documentation (as defined above), physically delivered to and actually received by BNY Mellon, Subcustodian or Depository, as applicable.

**"Private Investments"** means, collectively, (i) private equity investments, including investments in partnership and limited liability companies (excluding Hedge Fund Investments), acquired by a Customer and physically delivered to BNY Mellon, Subcustodian or Depository, as applicable, by the Customer from time to time during the term of, and pursuant to the terms of, this Agreement; (ii) all dividends in kind (e.g., non-cash dividends) from the investments described in clause (i); and (iii) loans or loan commitments originated by or otherwise obtained by a Customer and delivered to BNY Mellon Subcustodian or Depository, as applicable, by the Customer from time to time during the term of, and pursuant to the terms of, this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Customer Representations, Warranties and Covenants.** Each applicable Customer hereby represents, warrants and covenants, which shall be continuing and shall be deemed to be reaffirmed upon each Oral or Written Instruction given by the applicable Customer, that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is conducting its business in substantial compliance with all applicable laws and requirements, both state and federal, and has obtained all regulatory licenses, approvals and consents necessary to carry on its business as now conducted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It will not include in Investment Files anything other than Documentation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It will not otherwise use the services provided by BNY Mellon hereunder in any manner that is, or will result in, a violation of any law, rule or regulation applicable to Customer, and it will not include in any printed manner nor make any other statement or representation regarding BNY Mellon's services under this Addendum except as specifically provided herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Private Investments.** Notwithstanding anything in the Agreement to the contrary, the following shall apply with respect to Private Investments:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Customer will arrange for the physical and not, for the avoidance of doubt, electronic, delivery of an Investment File to BNY Mellon, Subcustodian or Depository, as applicable accompanied by a Written Instruction which clearly identifies the contents of such Investment File; provided that BNY Mellon, Subcustodian or Depository may, in its reasonable discretion, reject any Investment File and/or any Documentation contained therein which such BNY Mellon, Subcustodian or Depository has determined to be ineligible for deposit or which otherwise cannot be held in custody by BNY Mellon, Subcustodian or Depository. BNY Mellon shall endeavor to provide reasonable notice to Customer of a rejection of any Investment File or related Documentation; provided that BNY Mellon makes no representation as to its ability to provide such notice and shall not incur any liability arising out of its failure to provide such notice. If an Investment File is accepted, BNY Mellon will generate an asset identifying number to track the Investment File and safekeep such Investment file. Under no circumstances will BNY Mellon be required to issue a trust receipt (or similar instrument) with respect to any Investment File or its contents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It is understood and agreed that BNY Mellon will accept any file purporting to be an Investment File "as is" and without any examination thereof. BNY Mellon shall be under no obligation to determine the sufficiency of any Investment File, to review, verify, validate or otherwise inspect the contents of an Investment File or to provide any certification with respect thereto. Acceptance of Investment Files by the BNY Mellon is based solely on the applicable Customer's description and representations regarding the contents thereof and any other documentation that BNY Mellon requests to obtain reasonable comfort that such Investment File is what the Customer purports such Investment File to be, it being understood that none of the BNY Mellon, nor any Subcustodian or Depository, as applicable, shall have any duty to the Customer to so verify. BNY Mellon shall be entitled to fully rely, without independent verification, on the applicable Customer's representations regarding the Investment Files. BNY Mellon's safekeeping of an Investment File shall in no way be construed as custody of Private Investments (or any other underlying assets which the Investment File is said to constitute or represent) nor as a security entitlement to such Private Investments under applicable law. For the avoidance of doubt, BNY Mellon shall have no duty or obligation whatsoever to determine, or liability for the failure to determine, (i) the contents of an Investment File; (ii) that any Investment File is or is not what the applicable Customer purports it to be, or (iii) the value of any asset represented by the Investment File. BNY Mellon makes no representations or warranties, nor does it give any other assurances, regarding any Investment File or the contents thereof. Any Account statements will only reflect an inventory of the physical Investment Files that BNY Mellon holds hereunder without any representation as to the contents thereof. BNY Mellon shall be under no obligation hereunder for providing any Account statements directly to any clients or investors of a Customer, if applicable, or any third parties. With respect to the subject matter hereof, BNY Mellon will only provide those services set forth herein and BNY Mellon shall be under no obligation to accept delivery of any Investment File unless it is delivered in accordance with the foregoing requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each Customer shall be solely responsible for the servicing of all Private Investments. Each Customer shall cause all payments by or on behalf of issuers to be remitted to BNY Mellon for credit to the Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each Customer shall be solely responsible for maintaining all records of account activity relating to each Private Investment, including without limitation, any modification, all amortization schedules, records of transfer, pay-off, assignment, participation, sale, modification, termination or other changes in any such Private Investment. Upon modification or other change in any Private Investment, the applicable Customer shall promptly deliver or cause to be delivered to BNY Mellon, Subcustodian or Depository, as applicable, all relevant Documentation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Each Customer shall be solely responsible for the settlement of each purchase or sale of Private Investments. The applicable Customer shall deliver to BNY Mellon Written Instructions specifying all Investment Files to be received or released in connection with such purchase or sale and any other relevant information concerning the custody of the Investment Files relating to the affected Private Investments. The applicable Customer assumes full responsibility for all credit risks associated with any such sale or purchase or any loss, damage or destruction of any Documentation or Investment Files in transit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Customer Responsibilities.** Unless otherwise agreed in writing to the contrary, the applicable Customer shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Cause the issuer of the applicable Private Investment to deposit with BNY Mellon (by means of a check or draft payable to BNY Mellon or its nominee or by wire transfer) all income and other payments or distributions on or with respect to such Private Investment and advise BNY Mellon in a Written Instruction of the amount to be received and if such amount relates to a particular Investment File and the identity of such Investment File;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Direct BNY Mellon in a detailed Written Instruction to present for payment on the date and at the address specified therein the Private Investment specified therein whether at maturity or for repurchase or redemption, and to hold hereunder such amounts paid on or with respect to such particular Private Investments as BNY Mellon may receive;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Obtain and execute any certificates of ownership, affidavits, declarations or other certificates under any tax laws now or hereafter in effect in connection with the collection of bond and note coupons;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Cause the issuer to deposit with BNY Mellon, any Subcustodian or Depository, as applicable, such additional Private Investment or rights as may be issued with respect to any Private Investments and advise BNY Mellon in a detailed Written Instruction if the Private Investments are to be added or credited to a particular Investment File;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Be solely responsible for the exercise of rights or discretionary actions with respect to Private Investments covered by this Agreement; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Exercise all voting rights with respect to Private Investments.

## Ex-99.(J)(2)(I)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (j)(2)(i)**

AMENDMENT AGREEMENT

AMENDMENT AGREEMENT dated as of February 8, 2022, amongst each entity listed on Annex I attached thereto (each, a "Customer" collectively, the "Customers") and The Bank of New York Mellon, ("BNY Mellon").

WHEREAS, the Customers and the BNY Mellon have entered into a Custody Agreement dated as of June 4, 2021 (the "Agreement"), pursuant to BNY Mellon provides services to the Customers, one or more of which is a registered closed-end investment company; and

WHEREAS, in connection with the formation of Saba Capital SPV - BRW SPV I, a wholly owned subsidiary of Saba Capital Income & Opportunities Fund, the parties desire to add Saba Capital SPV - BRW SPV I. as a party to the Agreement;

WHEREAS, the parties desire to make clear that, subject to the conditions below, the terms and provisions of the Agreement shall be construed to apply to Saba Capital SPV - BRW SPV I and any additional investment vehicle that may become a party to the Agreement; and

WHEREAS, the parties wish to make certain modifications to the services set forth in the Agreement.

NOW, THEREFORE, in consideration of the forgoing premises and mutual covenants, agreements and promises contained in this Amendment, the parties hereto, intending to be legally bound, agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Amendments to the Agreement</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. The
following section is hereby added to the Agreement:

***"<u>Section 17.16: Adding Additional Customers to the Agreement</u>.*** *One or more additional investment Customers or vehicles which are advised by a Customer's investment adviser but which are organized as a separate legal entities from the Customer may be added as a party to the Agreement from time to time ("<u>Additional Customers</u>") through the execution of an amendment to the Agreement including, without limitation, an instrument of accession among each Customer party to the Agreement, such Additional Customer and BNY Mellon whereby each such Additional Customer(s) and BNY Mellon will agree to be bound by the terms of this Agreement. The addition of Additional Customer(s) to the Agreement will not affect the rights or obligations of the Customer under the terms of the Agreement. The obligations of the Customer and any Additional Customer(s) to BNY Mellon under the Agreement shall be several and not joint or joint and several.*"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. The
following section is hereby added to the Agreement:

"***<u>Section 17.17: Applicability of Agreement to Non-Registered Investment Companies</u>.*** *Except as noted in the next sentence, the terms and provisions of this Agreement shall be construed to apply to any investment Customer or investment vehicle which is not organized as a registered investment company ("<u>non-RIC</u>") and which is added as a party to the Agreement as an Additional Customer and its Shares. Subject to this Section 17.17, the term "Customer" as used throughout this Agreement shall be construed to include any non-RIC that is an Additional Customer, as applicable."*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Acceptance of Agreement and Fees.</u> BNY Mellon and Saba Capital SPV - BRW SPV I hereby agrees to be bound by the terms of the Agreement, including this Amendment, and Saba Capital SPV - BRW SPV I hereby appoints BNY Mellon to provide it with the services set forth in the Agreement. Saba Capital SPV - BRW SPV I shall be a party to the Agreement as an Additional Customer as of the date of this Amendment. As compensation for services to be rendered to Saba Capital SPV - BRW SPV I by BNY Mellon pursuant to the terms of the Agreement, Saba Capital SPV - BRW SPV I shall pay a fee to BNY Mellon as may be agreed to in writing by Saba Capital SPV - BRW SPV I and BNY Mellon.

4. For the avoidance of doubt, a dissolution of Saba Capital SPV - BRW SPV I shall not result in a termination of the Agreement.

5. As hereby amended and supplemented, the Agreement shall remain in full force and effect. In the event of a conflict between the terms hereof and the Agreement, this Amendment shall control. From and after the Effective Date, any reference to the Agreement shall be a reference to the Agreement as amended hereby.

6. This Amendment may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. The facsimile signature of any party to this Amendment shall constitute the valid and binding execution hereof by such party.

7. This Amendment shall be governed by the laws of the State of New York, without regard to its principles of conflicts of laws.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment Agreement to be executed in counterparts by their respective officers, thereunto duly authorized, as of the date first above written.

---

| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By | ![](ex99j2i001.jpg) |
| Title: Secretary | Title: Secretary |

---

---

| | |
|:---|:---|
| SABA CAPITAL SPV – BRW SPV I | SABA CAPITAL SPV – BRW SPV I |
| By | ![](ex99j2i002.jpg) |
| Title: Director | Title: Director |

---

---

| | |
|:---|:---|
| THE BANK OF NEW YORK MELLON | THE BANK OF NEW YORK MELLON |
| By | ![](ex99j2i003.jpg) |
| Title: | Authorized Signatory |

---

**<u>ANNEX I</u>**

Saba Capital Income & Opportunities Fund

Saba Capital SPV - BRW SPY I

## Ex-99.(K)(1)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (k)(1)**

**CONFIDENTIAL**

**Services Agreement**

This Services Agreement (the "<u>Agreement</u>") is entered into and effective as of June 4, 2021 (the "<u>Effective Date</u>") by and among:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. **ALPS Fund Services, Inc.**, a corporation incorporated in the State of Colorado (" <u>SS&C ALPS</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. **DST Asset Manager Solutions, Inc.**, a company incorporated in the Commonwealth of Massachusetts
 (" <u>SS&C DST,</u> " and collectively with SS&C ALPS, " <u>SS&C</u> ");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. **Saba Capital Income & Opportunities Fund** (f/k/a the **Voya Prime Rate Trust,** a
 Massachusetts statutory business trust, registered under the Investment Company Act of
 1940, as amended (" <u>1940 Act</u> "), as a closed-end, management investment
 company (the " <u>Fund</u> ");

The Fund and SS&C each may be referred to individually as a "<u>Party</u>" or collectively as "<u>Parties</u>."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.**  **<u>Definitions; Interpretation</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1. As
 used in this Agreement, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) "<u>Action</u>" means any civil, criminal, regulatory or administrative lawsuit, written allegation, claim, counterclaim, action, sanction, suit, investigation, arbitration or proceeding, in each case, made, asserted or commenced in writing by any Person (including any Government Authority).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) "<u>Affiliate</u>" means, with respect to any Person, any other Person that is controlled by, controls, or is under common control with such Person and "control" of a Person means: (i) ownership of, or possession of the right to vote, more than 50% of the outstanding voting equity of that Person or (ii) the right to control the appointment of the board of directors or analogous governing body, management or executive officers of that Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) "<u>Business Day</u>" means a day other than a Saturday or Sunday on which the New York Stock Exchange is open for business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) "<u>Claim</u>" means any Action arising out of the subject matter of, or in any way related to, this Agreement, its formation or the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) "<u>Client Data</u>" means all data of the Fund and Management, including, but not limited to, data related to securities trades and other transaction data, investment returns, issue descriptions, and Market Data provided by the Fund or its agent and all output and derivatives thereof, necessary to enable SS&C to perform the Services, but excluding SS&C Property.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) "<u>Confidential Information</u>" shall include, but not be limited to, the terms of this Agreement, confidential proprietary information concerning Management, the Fund, SS&C and SS&C Associates, or any of their respective Affiliates, agents, employees, partners, directors and shareholders, as the case may be, including Client Data, SS&C Property, any financial information, governing documents, investments, information related to the Fund's investors, the Fund data contained in the records, portfolio holdings, trading strategies, valuation methods, business plans, trade secrets, proprietary processes, intellectual property rights, product plans, marketing plans, and further includes all other information provided either by the Fund or Management to SS&C or SS&C to the Fund or Management that is identified as confidential at the time of disclosure or is what a reasonable person would deem to be confidential; provided that "Confidential Information" shall not include information that (i) is or becomes part of the public domain without breach of this Agreement by the receiving Party, (ii) was rightfully acquired from a third party, or is developed independently, by the receiving Party, or (iii) is generally known by Persons in the technology, securities, or financial services industries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) "<u>Data Supplier</u>" means a third party supplier of Market Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) "<u>Governing Documents</u>" means the constitutional documents of an entity and, with respect to the Fund, offering memorandum, subscription materials, and other disclosure documents utilized by the Fund in connection with the offering of any of its securities to investors, all as amended from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "<u>Government Authority</u>" means any relevant administrative, judicial, executive, legislative or other governmental or intergovernmental entity, department, agency, commission, board, bureau or court, and any other regulatory or self-regulatory organizations, in any country or jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) "<u>Law</u>" means statutes, rules, regulations, interpretations and orders of any Government Authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) "<u>Losses</u>" means any and all actual compensatory, direct, indirect, special, incidental, consequential, punitive, exemplary, enhanced or other damages, settlement payments, reasonable and documented third party attorneys' fees (which such billing rates of reputable counsel shall be deemed reasonable), costs, damages, charges, expenses, interest, applicable taxes or other actual losses of any kind.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) "<u>Management</u>" means the Fund's officers, directors, employees, and the investment adviser (currently Saba Capital Management, LP) and sub-advisor(s) (if any), as well as any officers, directors, employees or agents of the then current investment adviser and sub-advisor(s) (if applicable) who are responsible for the day to day operations and management of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) "<u>Market Data</u>" means third party market and reference data, including pricing, valuation, security master, corporate action and related data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) "<u>Person</u>" means any natural person or corporate or unincorporated entity or organization and that person's personal representatives, successors and permitted assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) "<u>Services</u>" means the services listed in <u>Schedule A</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p) "<u>SS&C Associates</u>" means SS&C and each of its Affiliates, members, shareholders, directors, officers, partners, employees, agents, delegates, successors or assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q) "<u>SS&C Property</u>" means all hardware, software, source code, data, report designs, spreadsheet formulas, information gathering or reporting techniques, know-how, technology and all other property commonly referred to as intellectual property used by SS&C in connection with its performance of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(r) "<u>Third Party Claim</u>" means a Claim (i) brought by any Person other than the indemnifying Party or (ii) brought by a Party on behalf of or that could otherwise be asserted by a third party.

1.2. Other capitalized terms used in this Agreement but not defined in this Section 1 shall have the meanings ascribed thereto.

1.3. Section and Schedule headings shall not affect the interpretation of this Agreement. This Agreement includes the schedules and appendices hereto. In the event of a conflict between this Agreement and such schedules or appendices, the former shall control.

1.4. Words in the singular include the plural and words in the plural include the singular. The words "including," "includes," "included" and "include", when used, are deemed to be followed by the words "without limitation." Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "hereof," "herein" and "hereunder" and words of analogous import shall refer to this Agreement as a whole and not to any particular provision of this Agreement.

1.5. The Parties' duties and obligations are governed by and limited to the express terms and conditions of this Agreement, and shall not be modified, supplemented, amended or interpreted in accordance with, any industry custom or practice, or any internal policies or procedures of any Party. The Parties have mutually negotiated the terms hereof and there shall be no presumption of law relating to the interpretation of contracts against the drafter.

**2. <u>Services and Fees</u>**

2.1. Subject to the terms of this Agreement, SS&C will perform the Services set forth in <u>Schedule A</u> for the Fund in a professional manner and with reasonable care, skill, prudence and diligence. SS&C shall be under no duty or obligation to perform any service except as specifically listed in <u>Schedule A</u> or take any other action except as specifically listed in <u>Schedule A</u> or this Agreement, and no other duties or obligations, including, valuation related, fiduciary or analogous duties or obligations, shall be implied. Any Fund requests to change the Services, including those necessitated by a change to the Governing Documents of the Fund or a changes in applicable Law, will only be binding on SS&C when they are reflected in an amendment to <u>Schedule A</u>.

2.2. The Fund agrees to pay, the fees, charges and expenses set forth in the fee letter(s) (a "<u>Fee Letter</u>"), which may be amended from time to time. The Fee Letter is incorporated by reference into this Agreement and subject to the terms of this Agreement. Payment by the Fund shall not limit SS&C's rights of recourse against the Fund.

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2.3. In carrying out its duties and obligations pursuant to this Agreement, some or all Services may be delegated by SS&C to (i) one or more of its Affiliates, or (ii) with the written consent of the Fund, other Persons selected by SS&C, which consent shall not be unreasonably revoked or withheld in respect of any such delegation. If SS&C delegates any Services, such delegation shall not relieve SS&C of its duties and obligations hereunder. SS&C shall select its delegates in good faith and shall use reasonable care in delegating or sub-contracting any such duties or functions and SS&C shall be responsible for the acts and omissions of any delegate. Upon written request of the Fund, SS&C shall provide the Fund a list of unaffiliated third party agents, if any.

2.4. After the second anniversary date of the Agreement and on each year thereafter, all fees reflected in Fee Letter will incur an annual cost of living increase as described in Fee Letter.

**3. <u>Responsibilities</u>**

3.1. The management and control of the Fund is vested exclusively in the Fund. The Fund and its Management are responsible for and will make all decisions, perform all management functions relating to the operation of the Fund, and shall authorize and are responsible for all transactions (except those delegated to SS&C pursuant to the terms herein). Without limiting the foregoing, the Fund shall use reasonable best efforts to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Designate properly qualified individuals to oversee the Services and establish and maintain internal controls, including monitoring the ongoing activities of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Evaluate the accuracy of the Services, review and approve all reports, analyses and records resulting from the Services and inform SS&C of any errors it is in a position to identify.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Provide, or cause to be provided, and accept responsibility for valuations of the Fund's assets and liabilities in accordance with the Fund's written valuation policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Provide SS&C with timely and accurate information including trading and Fund investor records, valuations and any other items reasonably required by SS&C in order to perform the Services and its duties and obligations hereunder.

3.2. The Services, including any services that involve price comparison to vendors and other sources, model or analytical pricing or any other pricing functions, are provided by SS&C as a support function to the Fund and do not limit or modify the Fund's responsibility for determining the value of the Fund's assets and liabilities.

3.3. Fund is solely and exclusively responsible for ensuring that it complies with Law and its respective Governing Documents. It is the Fund's responsibility to provide all final Fund Governing Documents as of the Effective Date. The Fund will notify SS&C in writing of any changes to the Fund Governing Documents that may materially impact the Services and/or that affect Fund's investment strategy or risk profile in any material respect prior to such changes taking effect. In each case, the Fund may make available updated Governing Documents at <u>www.sabacef.com</u>. SS&C is not responsible for monitoring compliance by the Fund with (i) Law, (ii) its respective Governing Documents or (iii) any investment restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.4. With
 respect to Market Data:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In the event that Market Data is supplied to or through SS&C Associates in connection with the Services, the Market Data is proprietary to Data Suppliers and is provided on a limited internal-use license basis. Market Data may: (i) only be used by the Fund in connection with the Services, (ii) not be disseminated by the Fund and (iii) access to and delivery of Market Data is dependent on the Data Suppliers and may be interrupted or discontinued with or without notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Notwithstanding anything in this Agreement to the contrary, neither SS&C nor any Data Supplier shall be liable to the Fund or any other Person for any Losses with respect to Market Data, reliance by SS&C Associates or Fund on Market Data or the provision of Market Data in connection with this Agreement.

3.5. Fund shall deliver, and endeavor to procure that its agents, term loan providers, counterparties, brokers, counsel, advisors, auditors, clearing agents, and any other Persons promptly deliver, to SS&C, all Client Data and the then most current version of all Fund Governing Documents. The Fund shall endeavor to arrange with each such Person to deliver such information and materials on a timely basis, and SS&C will not be required to enter any agreements with that Person in order for SS&C to provide the Services.

3.6. Notwithstanding anything in this Agreement to the contrary, during the term of this Agreement, SS&C (i) shall be entitled, without further enquiry, for all purposes in relation to dealings with all persons, to rely on the authenticity, completeness and accuracy of any and all information and communications of whatever nature received by SS&C Associates in good faith, in connection with the performance of the Services and SS&C's duties and obligations hereunder, and (ii) shall not be responsible or liable to any person for any Losses arising by virtue of any such information or communication not being authentic and/or accurate, in each case and without prejudice to Section 6.1, except to the extent for Losses resulting solely from the bad faith, gross negligence, willful misconduct or fraud of SS&C in the performance of the Services.

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3.7. Notwithstanding anything in this Agreement to the contrary, if SS&C is in doubt as to any action it should or should not take in its provision of Services, SS&C Associates may request directions, advice or instructions from the Fund, or as applicable, Management, custodian or other service providers. If SS&C is in doubt as to any question of law pertaining to any action it should or should not take, the Fund will make available to and SS&C Associates may request advice from counsel for any of the Fund, the Fund's independent board members, its officers, or Management (including its investment adviser or sub-adviser), each at the Fund's expense.

3.8. Fund agrees that, to the extent applicable, if officer position(s) are filled by SS&C Associates, such SS&C Associate(s) shall be covered by the Fund's Directors & Officers/Errors & Omissions Policy (the "Policy"), and the Fund shall use reasonable efforts to ensure that such coverage be (i) reinstated should the Policy be cancelled; (ii) continued after such officer(s) cease to serve as officer(s) of the Fund on substantially the same terms as such coverage is provided for the other persons serving as officers of the Fund after such persons are no longer officers of the Fund; or (iii) continued in the event the Fund merges or terminates, on substantially the same terms as such coverage is continued for the other Fund officers (but, in any event, for a period of no less than six years). The Fund shall provide SS&C with proof of current coverage, including a copy of the Policy, and shall notify SS&C immediately should the Policy be cancelled or terminated.

**4. <u>Term</u>**

4.1. The initial term of this Agreement will be from the Effective Date through the date ending two (2) years following the Effective Date ("<u>Initial Term</u>"). Thereafter, this Agreement will automatically renew for successive terms of one (1) year terms (each, a "<u>Subsequent Term</u>" and together with the Initial Term, the (the "<u>Term</u>"); provided that after the Initial Tem, the Fund may terminate this Agreement as of any calendar quarter end upon ninety (90) days' written notice to SS&C and (ii) SS&C may terminate this Agreement as of any calendar quarter end upon one-hundred and twenty (120) days' written notice to the Fund. In the event of the termination of this Agreement, SS&C shall provide exit assistance by promptly supplying Client Data to the Fund or any other party designated by the Fund in formats already prepared in the course of providing the Services; provided, that all fees and expenses properly billed and accrued have been paid.

**5. <u>Termination</u>**

5.1. In addition to the provisions of Section 4, SS&C or Fund also may, by written notice to the other, terminate this Agreement if any of the following events occur:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The other Party breaches any material term, condition or provision of this Agreement, which breach, if capable of being cured, is not cured within thirty (30) calendar days after the non-breaching Party gives the other Party written notice of such breach.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The other Party (i) liquidates, terminates or suspends its business, (ii) becomes insolvent, admits in writing its inability to pay its debts as they mature, makes an assignment for the benefit of creditors, or becomes subject to direct control of a trustee, receiver or analogous authority, (iii) becomes subject to any bankruptcy, insolvency or analogous proceeding, (iv) becomes subject to a material Action and/or an Action that the other Party reasonably determines could cause it reputational harm (including any Action against an affiliate of such party), (v) where the other Party is Fund, material changes in Fund's Governing Documents or the assumptions set forth in Section 1 of <u>Fee Letter</u> are determined by SS&C, in its reasonable discretion, to materially affect the Services or to be materially adverse to SS&C or (vi) has materially breached Law and such breach is not cured within ten (10) days after receiving written notice from the other party of such breach.

If any such event occurs, the termination will become effective immediately or on the date stated in the written notice of termination, which date shall not be less than sixty (60) days and not greater than ninety (90) calendar days after the event.

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5.2. Upon the receipt of SS&C of a termination notice from the Fund, subject to the receipt by SS&C of all then-due fees, charges and expenses, including any fees remaining for the balance of the unexpired portion of the Term, as noted in Section 5.3, SS&C shall continue to provide the Services up to the effective date of the termination notice; thereafter, SS&C shall have no obligation to perform any services of any type unless and to the extent set forth in an amendment to <u>Schedule A</u> and/or <u>Fee Letter</u> executed by SS&C. In the event of the termination of this Agreement, the Fund agrees to pay to SS&C a reasonable fee (determined by SS&C and the Fund acting reasonable) for additional services provided in connection with the Fund liquidating or reorganization to another Fund. In the event that the Fund wishes to retain SS&C to perform post-termination services, including providing data and reports in new formats, the Fund and SS&C shall agree in writing to the additional services and related fees and expenses in a statement of work or amendment to <u>Schedule A</u> and/or <u>Fee Letter</u>, as appropriate. Should the Fund exercise its right to terminate and move to a new service provider for the services, all reasonable out-of-pocket expenses or costs associated with the movement of records and material will be borne by the Fund.

5.3. If the Fund elects to terminate this Agreement prior to the end of the Initial Term or Subsequent Term, the Fund agrees to pay an amount equal to the monthly minimum fee (as described in the Fee Letter) paid by the Fund to SS&C under the Agreement multiplied by the number of months remaining in the Term. To the extent any services are performed by SS&C for the Fund after the termination of this Agreement, all of the provisions of this Agreement except portions that are inapplicable to such continuing services shall survive the termination of this Agreement for so long as those services are performed.

5.4. Termination of this Agreement shall not affect: (i) any liabilities or obligations of any Party arising before such termination (including the performance of the Services and the payment of fees and expenses) or (ii) any damages or other remedies to which a Party may be entitled for breach of this Agreement or otherwise. Sections 2.2., 5.2 (as applicable), 6, 8, 9, 10, 11, 12 and 13 of this Agreement shall survive the termination of this Agreement. To the extent any services that are Services are performed by SS&C for Fund after the termination of this Agreement all of the provisions of this Agreement except <u>Schedule A</u> shall survive the termination of this Agreement for so long as those services are performed.

**6. <u>Limitation of Liability and Indemnification</u>**

6.1. Notwithstanding anything in this Agreement to the contrary, SS&C shall not be liable to the Fund or any other Person for any action or inaction of any SS&C Associate relating to any event whatsoever except for Losses resulting solely from the bad faith, gross negligence, willful misconduct or fraud of SS&C in the performance of SS&C's duties or obligations under this Agreement. Further, notwithstanding anything in this Agreement to the contrary, the maximum amount of cumulative liability of SS&C to the Fund for Losses arising out of the subject matter of, or in any way related to, this Agreement, except to the extent of Losses resulting solely from the bad faith, willful misconduct or fraud of SS&C Associates in the performance of SS&C's duties or obligations under this Agreement shall not exceed the fees paid by the Fund to SS&C under this Agreement for the most recent 48 months immediately preceding the date of the event giving rise to the Claim.

6.2. To the maximum extent permissible by law, the Fund shall indemnify, defend and hold harmless SS&C Associates from and against Losses (including reasonable and documented legal fees and costs to enforce this provision, which such billing rates of reputable counsel shall be deemed reasonable) that SS&C Associates suffer, incur, or pay as a result of any Third Party Claim, except to the extent of Losses resulting solely from bad faith, gross negligence, willful misconduct or fraud of SS&C in the performance of SS&C's duties or obligations under this Agreement. Any expenses (including such legal fees and costs) incurred by SS&C Associates in defending or responding to any Claims (or in enforcing this provision) and required to be covered pursuant to this Section 6.2 shall be paid by the Fund on a quarterly basis prior to the final disposition of such matter upon receipt by the Fund of a written undertaking by SS&C to repay such amount if it shall be determined that an SS&C Associate is not entitled to be indemnified. Notwithstanding the foregoing, the indemnified parties shall repay any such sums advanced in the event that the indemnified parties are Finally Determined (as defined below) not to be entitled to indemnification hereunder. "Finally Determined" shall mean determined by a final, unappealable (or not timely appealed) judgment of a court or arbiter of competent jurisdiction.

6.3. Upon the assertion of a Claim for which the Fund may be required to indemnify SS&C, SS&C shall notify the Fund in writing of such assertion, and shall keep the Fund advised with respect to all developments concerning such Claim. The Fund shall have the option to participate with SS&C in the defense of such Claim and SS&C shall reasonably allow such participation. SS&C shall provide such non-privileged information, about any such Claim that the Fund may request in writing. SS&C shall in no case confess, compromise or settle the Claim in any case in which the Fund may be required to indemnify it except with the Fund's prior written consent, which consent shall not be unreasonably delayed.

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6.4. Except with respect to the Fund's indemnification obligations under this Section 6, in no event shall either Party be liable to the other Party for Losses that are indirect, special, incidental, consequential, punitive, exemplary or enhanced or that represent lost profits, opportunity costs or diminution of value arising out of the subject matter of this Agreement, whether the Losses are foreseeable, whether or not advised of the possibility of the Losses and notwithstanding the failure of any agreed or other remedy of its essential purpose.

**7. <u>Representations and Warranties</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.1. Each
 Party represents and warrants to each other Party that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) It is a legal entity duly created, validly existing and in good standing under the Law of the jurisdiction in which it is created, and is in good standing in each other jurisdiction where the failure to be in good standing would have a material adverse effect on its business or its ability to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Save for access to and delivery of Market Data that is dependent on Data Suppliers and may be interrupted or discontinued with or without notice, it has all necessary legal power and authority to own, lease and operate its assets and to carry on its business as presently conducted and as it will be conducted pursuant to this Agreement and will comply in all material respects with all Law to which it may be subject, and to the best of its knowledge and belief, it is not subject to any Action that would prevent it from performing its duties and obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It has all necessary legal power and authority to enter into this Agreement, the execution of which has been duly authorized and will not violate the terms of any other agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The Person signing on its behalf has the authority to contractually bind it to the terms and conditions in this Agreement and that this Agreement constitutes a legal, valid and binding obligation of it, enforceable against it in accordance with its terms.

7.2. The Fund represents and warrants to SS&C that: (i) it has actual authority to provide instructions and directions and that all such instructions and directions are consistent with the Governing Documents of the Fund and other corporate actions thereof; (ii) it is a statutory business trust duly organized and existing and in good standing under the laws of the state of Massachusetts and is registered with the Securities and Exchange Commission (the "SEC") as a closed-end management investment company; (iii) it is empowered under applicable laws and by its Declaration of Trust and By-laws (together, the "Organizational Documents") to enter into and perform this Agreement; (iv) the Board of Trustees of the Fund has duly authorized it to enter into and perform this Agreement; and (v) it will promptly notify SS&C of (1) any Action against it or its investment adviser or sub-adviser and (2) changes (or pending changes) in applicable Law with respect to the Fund that are relevant to the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.3. SS&C
 represents and warrants to the Fund that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) To its knowledge, none of the software owned or licensed by SS&C and used to provide the Services contains a virus, malware or a similar defect that could reasonably be anticipated to damage, detrimentally interfere with, surreptitiously intercept, adversely affect or expropriate Client Data maintained by SS&C;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) It has implemented and maintains commercially reasonable business continuity policies and procedures with respect to the Services, will provide the Fund with a summary of its business continuity policies, will test its business continuity procedures at least annually and will provide the Fund with a summary of the test results upon written request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It has implemented and maintains policies and procedures that are reasonably designed to protect against unauthorized access to or use of Fund and Management Personal Information and Confidential Information maintained by SS&C;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) To its knowledge, the Services do not infringe, violate or misappropriate on the intellectual property rights of any Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) It has designated reasonably qualified individuals, and has systems and infrastructure reasonably designed and selected, to perform its obligations under this Agreement; and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) It has established and maintains internal controls related to the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.**  **<u>Client Data</u>** 

8.1. The Fund (i) will provide or use reasonable commercial efforts to ensure that other Persons provide all Client Data to SS&C in an electronic format that is acceptable to SS&C (or as otherwise agreed in writing) and (ii) confirm that each has the right to so share such Client Data. As between SS&C and Fund, all Client Data shall remain the property of the Fund. Client Data shall not be used or disclosed by SS&C other than in connection with providing the Services and as permitted under Section 11.2. SS&C shall be permitted to act upon instructions from Fund or Management with respect to the disclosure or disposition of Client Data related to the Fund, but may refuse to act upon such instructions where it doubts, in good faith, the authenticity or authority of such instructions.

8.2. SS&C shall maintain and store Client Data used in the official books and records of the Fund for a rolling period of seven (7) years starting from the Effective Date, or such longer period as required by applicable Law or its internal policies or until such earlier time as it returns such records to the Fund or the Fund's designee.

8.3. During the term of this Agreement and upon the written request, SS&C shall deliver copies of Client Data relating to the Fund in its possession to the Fund, Management or their designees upon Fund's written request. In connection with termination of this Agreement and upon receipt of all fees, expenses and other monies that accrued for the account of SS&C, SS&C shall, at the expense of the Fund, promptly deliver Client Data in its possession to the Funds (or to such persons as they may direct).

8.4. Client Reviews. Upon at least 30 days' written notice from the Fund to SS&C, Fund, through its staff or agents (other than any Person that is a competitor of SS&C), (each a "<u>Reviewer</u>") may conduct a reasonable, on-site review of the operational and technology infrastructure controls used by SS&C to provide the Services and meet SS&C's confidentiality and information security obligations under this Agreement (a "<u>Review</u>"). The Fund shall accommodate SS&C requests to reschedule the Review based on the availability of required resources. With respect to any Review, the Fund shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Ensure
 that the Review is conducted in a manner that does not disrupt SS&C's business
 operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Pay
 SS&C costs, including staff time at standard rates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Comply,
 and ensure that Reviewers comply, with SS&C policies and procedures relating to physical,
 computer and network security, business continuity, safety and security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Ensure
 that all Reviewers are bound by written confidentiality obligations substantially similar
 to, and no less protective than, those set forth in the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Be
 limited to 1 Review per calendar year, except for mandatory Reviews by Governmental Authorities
 or pursuant to a material breach of the Agreement by SS&C.

**9. <u>Data Protection</u>**

9.1. From time to time and in connection with the Services, SS&C may obtain access to certain personal information from the Fund and its investors for its processing. "<u>Personal Information</u>" shall include non-public personal information provided to, and maintained by, the Fund, including personally identifiable financial information as defined by Title V of the Gramm-Leach Bliley Act, 15 U.S.C. §§6801, et seq., and its implementing regulations (the "<u>GLBA</u>"). Personal Information shall not include any Personal Information not required by Law to be kept confidential. As applicable to the Services, SS&C has implemented policies and procedures that are reasonably designed to meet the requirements of, and SS&C shall comply in all material respects with, the provisions of the GLBA regarding the restrictions on use, disclosure, and safeguarding of Fund and Management Personal Information processed by SS&C. SS&C shall comply with privacy Law applicable to SS&C and Client Data in its possession.

9.2. The Fund consents to the (a) processing and (b) transmission outside the jurisdiction governing this Agreement of the Fund Personal Information for any purpose reasonably related solely to the Services.

9.3. SS&C will implement and maintain policies and procedures that are reasonably designed to protect against unauthorized access to or use of the Fund and Management Personal Information and Confidential Information maintained by SS&C that could result in material harm or inconvenience to Client or Fund investors. SS&C will have its policies and procedures that materially relate to the measures described in this paragraph tested or evaluated by a third party at least annually. SS&C shall implement and maintain (a) a written information security program which shall be reviewed by SS&C at least annually and (b) reasonable technical, administrative and physical safeguards to protect Client Data from accidental, unauthorized, or unlawful destruction, loss, alteration, disclosure, or access, which safeguards shall include: (i) encryption during the transmission or storage of the Fund and Management Personal Information and Confidential Information, (ii) installation and maintenance of firewalls configured to protect Fund and Management Personal Information and Confidential Information, (iii) use of automatically updating anti-virus software on devices used in providing the Services, (iv) an intrusion and vulnerability management program, (iv) tracking and monitoring access to network resources and Confidential Information, (vii) control access to physical hardware that contains Confidential Information, (viii) distributed denial of service mitigation services, (ix) a reasonable program for disposal of documents and media containing Fund and Management Personal Information and Confidential Information, and (x) procedures for the maintenance of Client Data.

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9.4. SS&C will promptly investigate incidents of unauthorized access to or loss of the Fund and Management Personal Information and Confidential Information maintained by SS&C (a "<u>Data Breach</u>") and, unless prohibited by Law or if it would compromise SS&C's investigation, or such Data Beach occurs within SS&C family including Affiliates, notify Client as soon as reasonably practicable following any Data Breach. Client is responsible for making notifications related to a Data Breach that are required by Law. SS&C will work with Client in good faith to effect such notifications as such Data Breach relates specifically to Client Data as required by Law. SS&C will seek to implement corrective action to respond to Data Breaches and prevent future occurrences, and will report to Client the corrective actions in a reasonable time frame. SS&C will reasonably cooperate with Client in the event of any Governmental Authority inquiry related to or arising out of a Data Breach.

9.5. SS&C will encrypt Client Data, both at rest and in transit, via reasonable commercial solution substantially in conformity with the then current version of the requirements set forth in Federal Information Processing Standard (FIPS) Publication 140.

9.6. At the written request of Management, on an annual basis and subject to a written disclaimer, and if required by auditors that prepared such reports, an indemnity, provide Client with a copy of its reports prepared under Statement on Standards for Attestation Engagements No.16., Service Organization Controls 1 (SOC1), as applicable to the Services and SS&C's data processing environment.

**10. <u>SS&C Property</u>**

10.1. SS&C Property is and shall remain the property of SS&C or, when applicable, its Affiliates or suppliers. Neither Fund nor Management nor any other Person shall acquire any license or right to use, sell, disclose, or otherwise exploit or benefit in any manner from, any SS&C Property, except as specifically set forth herein. The Fund shall not (unless required by Law) either before or after the termination of this Agreement, disclose to any Person not authorized by SS&C to receive the same, any information concerning the SS&C Property and shall use reasonable efforts to prevent any such disclosure.

**11. <u>Confidentiality</u>**

11.1. Each Party shall not at any time disclose to any Person any Confidential Information concerning the business, affairs, customers, clients or suppliers of the other Party or its Affiliates, except as permitted by this Section 11.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.2. Each
 Party may disclose the other Party's Confidential Information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) In
 the case of the Fund, to each of its Affiliates, members, shareholders, directors, officers,
 partners, employees and agents (" <u>Fund Representative</u> ") who need to
 know such information for the purpose of carrying out its duties under, or receiving
 the benefits of or enforcing, this Agreement. The Fund shall ensure compliance by the
 Fund Representatives with Section 11.1 and shall be responsible for such compliance by
 Fund Representatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In
 the case of SS&C, to SS&C Associate who need to know such information for the
 purpose of carrying out SS&C's duties under or enforcing this Agreement. SS&C
 shall ensure compliance by SS&C Associates with Section 11.1 and shall be responsible
 for such compliance by SS&C Associates. SS&C shall ensure that any Affiliates,
 permitted delegates or sub-contractors under this Agreement are bound by obligations
 of nondisclosure and confidentiality at least as stringent as those found in this Agreement
 and shall be responsible for such compliance by SS&C Associates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) As
 may be required by Law or pursuant to legal process; provided that the disclosing Party
 (i) where reasonably practicable and to the extent legally permissible, provides the
 other Party with prompt written
notice of the required disclosure so that the other Party may seek a protective order or take other analogous action, (ii) discloses
no more of the other Party's Confidential Information than reasonably necessary and (iii) reasonably cooperates with actions
of the other Party in seeking to protect its Confidential Information at that Party's expense.

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11.3. Neither Party shall use the other Party's Confidential Information for any purpose other than to perform its obligations under this Agreement. Each Party may retain a record of the other Party's Confidential Information for the longer of (i) 7 years or (ii) as required by Law or its internal policies.

11.4. SS&C's ultimate parent company is subject to U.S. federal and state securities Law and may make disclosures as it deems necessary to comply with such Law. SS&C shall have no obligation to use Confidential Information of, or data obtained with respect to, any other client of SS&C in connection with the Services.

11.5. Upon the prior written consent of the Management, SS&C shall have the right to identify Fund in connection with its marketing-related activities and in its marketing materials as a client of SS&C. Upon the prior written consent of SS&C, which shall not be unreasonably denied, delayed or conditioned, the Fund shall have the right to identify SS&C and to describe the Services and the material terms of this Agreement in the offering documents of the Fund. This Agreement shall not prohibit SS&C from using any Fund data (including Client Data) in tracking and reporting on SS&C's clients generally or making public statements about such subjects as its business or industry; provided that neither Fund nor Management is named in such public statements without its prior written consent. If the Services include the distribution by SS&C of notices or statements to investors, SS&C may, upon advance notice to the Fund, include reasonable notices describing those terms of this Agreement relating to SS&C and its liability and the limitations thereon; if investor notices are not sent by SS&C but rather by the Fund or some other Person, the Fund will reasonably cooperate with any request by SS&C to include such notices. The Fund shall not, in any communications with any Person, whether oral or written, make any representations stating or implying that SS&C is (i) providing valuations with respect to the securities, products or services of the Fund, or verifying any valuations, (ii) verifying the existence of any assets in connection with the investments, products or services of the Fund, or (iii) acting as a fiduciary, investment adviser, tax preparer or advisor, custodian or bailee with respect to the Fund, Management or any of their respective assets, investors or customers.

11.6. In the event the Fund obtains information from SS&C or the TA2000 System which is not intended for the Fund, the Fund agrees to (i) promptly after discovery thereof, notify SS&C that unauthorized information has been made available to the Fund; (ii) not knowingly review, disclose, release, or in any way, use such unauthorized information; and (iii) provide SS&C reasonable assistance in retrieving such unauthorized information and/or destroy such unauthorized information.

**12. <u>Notices</u>**

12.1. Except as otherwise provided herein, all notices required or permitted under this Agreement or required by Law shall be effective only if in writing and delivered: (i) personally, (ii) by registered mail, postage prepaid, return receipt requested, (iii) by receipted prepaid courier (iv) by any electronic mail, to the relevant address or number listed below (or to such other address or number as a Party shall hereafter provide by notice to the other Parties). Notices shall be deemed effective when received by the Party to whom notice is required to be given.

**If to SS&C (to each of):**

ALPS Fund Services, Inc.

1290 Broadway, Suite 1000<br> Denver, CO 80203<br> Attention: General Counsel<br> E-mail: notices@sscinc.com

SS&C Technologies, Inc.

4 Times Square, 6<sup>th</sup> Floor

New York, New York 10036

Attention: Chief Operating Officer

General Counsel

E-mail: SSCGlobeOpNotices@sscinc.com

notices@sscinc.com

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**If to the Fund:**

Saba Capital Management L.P.<br> Michael D'Angelo

405 Lexington Avenue, 58<sup>th</sup> Floor<br> NY, NY 10074

Attention: Legal

Tel: +1 212-542-4635

E-mail: legalcompliance @sabacapital.com

**13. <u>Miscellaneous</u>**

13.1. <u>Amendment; Modification</u>. This Agreement may not be amended or modified except in writing signed by an authorized representative of each Party. No Party has authority to bind the other Party in any way to any oral covenant, promise, representation or warranty concerning this Agreement, the Services or otherwise.

13.2. <u>Assignment</u>. Neither this Agreement nor any rights under this Agreement may be assigned or otherwise transferred by the Fund, in whole or in part, whether directly or by operation of Law, including by change of control, without the prior written consent of SS&C. Upon prior notice to the Fund, SS&C may assign or otherwise transfer this Agreement: (i) to a successor in the event of a change in control of SS&C or (ii) to an Affiliate. Any attempted delegation, transfer or assignment prohibited by this Agreement shall be null and void. If SS&C assigns or otherwise transfers this Agreement to a third-party other than an Affiliate without the Fund's written consent, the Fund may terminate this Agreement by written notice to SS&C within 90 days of receiving notice of such assignment or transfer, subject to SS&C's right within thirty calendar days of such notice to rescind such assignment or transfer.

13.3. <u>Choice of Law; Choice of Forum</u>. This Agreement shall be interpreted in accordance with and governed by the Law of the State of New York. The courts of the State of New York and the United States District Court for the Southern District of New York shall have exclusive jurisdiction to settle any Claim. EACH PARTY SUBMITS TO THE EXCLUSIVE JURISDICTION OF SUCH COURTS AND WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ALL RIGHTS TO A TRIAL BY JURY.

13.4. <u>Dispute Resolution</u>. Notwithstanding anything herein to the contrary, if a dispute arises out of or relates to this Agreement, or the breach thereof, and if such dispute cannot be settled through negotiation, the Parties agree (i) to try in good faith to settle the dispute by mediation under the Commercial Mediation Rules of the American Arbitration Association before resorting to arbitration in connection with this Agreement, (ii) if the mediation called for in clause (i) above is unsuccessful in resolving the dispute, such dispute arising out of or connected with this Agreement, including a dispute as to the validity or existence of the Agreement, shall be resolved by arbitration in New York City conducted in the English language by three arbitrators (one selected by SS&C, one selected by the investment advisor and the third selected by the two Party-designated arbitrators) pursuant to the Commercial Arbitration Rules of the American Arbitration Association, save that, unless the Parties agree otherwise, neither party shall be required to give the general discovery of documents, but may be required to produce only specific, identified documents which are relevant to the dispute; (iii) to waive any rights to litigation and any rights they might otherwise have to a trial; and waive any immunities, including but not limited to sovereign immunity, which may otherwise apply; and (iv) that such dispute, any and all resolution or arbitration procedure(s), and any findings or results shall be held strictly confidential.

13.5. <u>Insurance</u>. SS&C shall obtain and maintain commercial insurance policies and provide evidence of same upon written request by Management.

13.6. <u>Counterparts; Signatures</u>. This Agreement may be executed in counterparts, each of which when so executed will be deemed to be an original. Such counterparts together will constitute one agreement. Signatures may be exchanged via facsimile or electronic mail and shall be binding to the same extent as if original signatures were exchanged.

13.7. <u>Entire Agreement</u>. This Agreement (including any schedules, attachments, amendments and addenda hereto) contains the entire agreement of the Parties with respect to the subject matter hereof and supersedes all previous communications, representations, understandings and agreements, either oral or written, between the Parties with respect thereto. This Agreement sets out the entire liability of SS&C Associates related to the Services and the subject matter of this Agreement, and no SS&C Associate shall have any liability to the Fund or any other Person for, and Fund hereby waives to the fullest extent permitted by applicable law recourse under, tort, misrepresentation or any other legal theory.

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13.8. <u>Force Majeure</u>. No Party will be responsible for any Losses of another Party or another Party's property in its possession or for any failure to fulfill its duties or obligations hereunder if such Loss or failure is caused, directly or indirectly, by war, terrorist or analogous action, the act of any Government Authority or other authority, riot, civil commotion, rebellion, storm, accident, fire, lockout, strike, power failure, computer error or failure, delay or breakdown in communications or electronic transmission systems, or other analogous events. Each Party shall use commercially reasonable efforts to minimize the effects on the Services of any such event, including maintaining procedures for the safekeeping and security of information relating to the other Party.

13.9. <u>Non-Exclusivity</u>. The duties and obligations of SS&C hereunder shall not preclude SS&C from providing services of a comparable or different nature to any other Person and to receive economic or other benefits in connection therewith. The Fund understands that SS&C may have commercial relationships with Data Suppliers and providers of technology, data or other services to the Fund and SS&C may receive economic or other benefits in connection with the Services provided hereunder.

13.10. <u>No Partnership</u>. Nothing in this Agreement is intended to, or shall be deemed to, constitute a partnership or joint venture of any kind between or among any of the Parties.

13.11. <u>No Solicitation</u>. During the term of this Agreement and for a period of 12 months thereafter, the Fund will not directly or indirectly solicit the services of, or otherwise attempt to employ or engage any employee of SS&C or its Affiliates without the consent of SS&C; provided, however, that the foregoing shall not prevent Fund from soliciting employees through general advertising not targeted specifically at any or all SS&C Associates. If Fund employs or engages any SS&C Associate during the term of this Agreement or the period of 12 months thereafter in contravention of this Section 13.9, such entity shall pay for any fees and expenses (including recruiters' fees) incurred by SS&C or its Affiliates in hiring replacement personnel as well as any other remedies available to SS&C.

13.12. <u>No Warranties</u>. Except as expressly listed herein, SS&C and each Data Supplier make no warranties, whether express, implied, contractual or statutory with respect to the Services or Market Data. SS&C disclaims all implied warranties of merchantability and fitness for a particular purpose with respect to the Services. All warranties, conditions and other terms implied by Law are, to the fullest extent permitted by Law, excluded from this Agreement.

13.13. <u>Severance</u>. If any provision (or part thereof) of this Agreement is or becomes invalid, illegal or unenforceable, the provision shall be deemed modified to the minimum extent necessary to make it valid, legal and enforceable. If such modification is not practical, the relevant provision shall be deemed deleted. Any such modification or deletion of a provision shall not affect the validity, legality and enforceability of the rest of this Agreement. If a Party gives notice to another Party of the possibility that any provision of this Agreement is invalid, illegal or unenforceable, the Parties shall negotiate to amend such provision so that, as amended, it is valid, legal and enforceable and achieves the intended commercial result of the original provision.

13.14. <u>Testimony</u>. If SS&C is required by a third party subpoena or otherwise, to produce documents, testify or provide other evidence regarding the Services, this Agreement or the operations of the Fund in any Action to which Fund or Management is a party or otherwise related to the Fund (other than an Action between SS&C and the Fund), the Fund shall reimburse SS&C for all costs and expenses, including the time of its professional staff at SS&C's standard rates and the cost of legal representation, that SS&C reasonably incurs in connection therewith, except to the extent resulting solely from the bad faith, gross negligence, willful misconduct or fraud of SS&C Associates in the performance of SS&C's duties and obligations under this Agreement.

13.15. <u>Third Party Beneficiaries</u>. This Agreement is entered into for the sole and exclusive benefit of the Parties and will not be interpreted in such a manner as to give rise to or create any rights or benefits of or for any other Person except as (i) with respect to SS&C Associates and, (ii) with respect to Sections 3.2 and 3.4(b) only, Data Suppliers.

13.16. <u>Waiver</u>. No failure or delay by a Party to exercise any right or remedy provided under this Agreement or by Law shall constitute a waiver of that or any other right or remedy, nor shall it prevent or restrict the further exercise of that or any other right or remedy. No exercise (or partial exercise) of such right or remedy shall prevent or restrict the further exercise of that or any other right or remedy.

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13.17. <u>Certain Third Party Vendors.</u> Nothing herein shall impose any duty upon SS&C in connection with or make SS&C liable for the actions or omissions to act of the following types of unaffiliated third parties: (a) courier and mail services including but not limited to Airborne Services, Federal Express, UPS and the U.S. Mails, (b) telecommunications companies including but not limited to AT&T, Verizon, Sprint, and other delivery, telecommunications and other such companies not under the Party's reasonable control, and (c) third parties not under the Party's reasonable control or subcontract relationship providing services to the financial industry generally, such as, by way of example and not limitation, the Depository Trust Clearing Corporation (processing and settlement services), Broadridge Financial Services (investor communications), the Fund custodian banks (custody and fund accounting services) and administrators (blue sky and Fund administration services), Data Suppliers, and national database providers such as Choice Point, Acxiom, TransUnion or Lexis/Nexis and any replacements thereof or similar entities, provided, if SS&C selected such company, SS&C shall have exercised due care in selecting the same. Such third party vendors shall not be deemed, and are not, subcontractors for purposes of this Agreement.

**\* \* \***

**[signature page follows]**

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This Agreement has been entered into by the Parties as of the Effective Date.

---

| | | | |
|:---|:---|:---|:---|
| **ALPS FUND SERVICES, INC.** | **ALPS FUND SERVICES, INC.** | &nbsp;&nbsp;**DST ASSET MANAGER SOLUTIONS, INC.** | &nbsp;&nbsp;**DST ASSET MANAGER SOLUTIONS, INC.** |
| By: | ![](ex99k1001.jpg) | &nbsp;&nbsp;By: | ![](ex99k1001.jpg) |
| Name: | &nbsp;&nbsp;&nbsp;Rahul Kanwar | &nbsp;&nbsp;Name: | Rahul Kanwar |
| Title: | &nbsp;&nbsp;&nbsp;Authorized Representative | &nbsp;&nbsp;Title: | Authorized Representative |

---

---

| | |
|:---|:---|
| **Saba Capital Income & Opportunities Fund** | **Saba Capital Income & Opportunities Fund** |
| **By: Saba Capital Management, LP** | **By: Saba Capital Management, LP** |
| By: | ![](ex99k1002.jpg) |
| Name: | Michael D'Angelo, COO |
| Title: |  |

---

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**Schedule A**

**Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.**  **<u>General</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Any
 references to Law shall be construed to the Law as amended to the date of the effectiveness
 of the applicable provision referencing the Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As
 used in this <u>Schedule A</u>, the following terms have the meanings ascribed to them
 below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) " <u>ACH</u> "
 shall mean the Automated Clearing House;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) " <u>AML</u> "
 means anti-money laundering and countering the financing of terrorism.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) " <u>Bank</u> "
 shall mean a nationally or regionally known banking institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) " <u>Code</u> "
 shall mean the Internal Revenue Code of 1986, as amended;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) " <u>DTCC</u> "
 shall mean the Depository Trust Clearing Corporation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) " <u>investor</u> "
 or " <u>securityholder</u> " means an equity owner in Fund, whether a shareholder
 in a company, a partner in a partnership, a unitholder in a trust or otherwise. A " <u>prospective investor</u> " means an applicant to become an investor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) " <u>IRA</u> "
 shall mean Individual Retirement Account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) " <u>NAV</u> "
 means net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) " <u>Procedures</u> "
 shall collectively mean SS&C DST's transfer agency procedures manual, third
 party check procedures, checkwriting draft procedures, Compliance + and identity theft
 programs and signature guarantee procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) " <u>Program</u> "
 shall mean Networking, the Fund Serv or other DTCC program;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) " <u>Sales Feed</u> " shall mean a data file in industry standard format sent by a third party;
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) " <u>TA2000 System</u> " shall mean SS&C DST's TA2000<sup>TM</sup> computerized data
 processing system for shareholder accounting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Any
 references to Law shall be construed to the Law as amended to the date of the effectiveness
 of the applicable provision referencing the Law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Fund
 acknowledges that SS&C's ability to perform the Services is subject to the
 following dependencies (in addition to any others described in the Agreement):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Fund,
 Management and other Persons that are not employees or agents of SS&C whose cooperation
 is reasonably required for the SS&C to provide the Services providing cooperation,
 information and, as applicable, instructions to SS&C promptly, in agreed formats,
 by agreed media and within agreed timeframes as required to provide the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 communications systems operated by the Fund and other Persons that are not employees
 or agents of SS&C remaining fully operational.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 accuracy and completeness of any Client Data or other information provided to SS&C
 Associates in connection with the Services by any Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Fund
 and Management informing SS&C on a timely basis of any modification to, or replacement
 of, any agreement to which it is a party that is relevant to the provision of the Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Any
 warranty, representation, covenant or undertaking expressly made by the Fund or Management
 under or in connection with this Agreement being and remaining true, correct and discharged
 at all relevant times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) SS&C's
 timely receipt of the then most current version of the Fund Governing Documents and required
 implementation documentation, including authority certificate, profile questionnaire
 and accounting preferences, and SS&C Web Portal and other application User information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Notwithstanding
 anything in this Agreement to the contrary, SS&C ALPS is responsible for providing
 the Services listed under Section B "SS&C ALPS Fund Administration and Accounting
 Services"; while SS&C DST is responsible for providing all other Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.**  **<u>SS&C ALPS Fund Administration and Accounting Services and Terms</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 following Services will be performed by SS&C ALPS under this Agreement and, as applicable,
 are contingent on the performance by the Fund of its duties and obligations otherwise
 contained in this Agreement.

***Fund Administration***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Prepare
 annual and semi-annual financial statements, utilizing templates for standard layout
 and printing

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prepare
 Forms N-CEN and N-CSR

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) File
 Form N-CEN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Host
 annual audits

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Prepare
 required reports for quarterly Board meetings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Monitor
 expense ratios and expense cap

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Maintain
 budget vs. actual expenses

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Manage
 fund invoice approval and bill payment process

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Assist
 with placement of Fidelity Bond and E&O insurance

***Fund Accounting***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Calculate
 NAVs as required by the Trust and in conformance with generally accepted accounting principles
 ("GAAP"), SEC Regulation S-X (or any successor regulation) and the Internal
 Revenue Code

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Transmit
 net asset values to the advisor, NASDAQ, Transfer Agent & other third parties

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Reconcile
 cash & investment balances with the custodian, including bank debt and loan positions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Provide
 data and reports to support preparation of financial statements and filings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Prepare
 required Fund Accounting records in accordance with the 1940 Act

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Apply
 security valuations as directed and determined by the Fund consistent with the Fund's
 pricing and valuation policies (daily)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Participate,
 when requested, in Fair Value Committee meetings as a non-voting member

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) Calculate
 monthly SEC standardized total return performance figures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) Coordinate
 reporting to outside agencies including Morningstar, etc

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) Prepare
 and file Form N-PORT

***Tax Administration***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Calculate
 dividend and capital gain distribution rates

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Prepare
 ROCSOP and required tax designations for Annual Report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Prepare
and coordinate filing of income and excise tax returns

- Audit firm to sign all returns as paid preparer

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Calculate/monitor
 book-to-tax differences

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Provide
 quarterly Subchapter M compliance monitoring and reporting

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Provide
tax re-allocation data for shareholder 1099 reporting

***Legal Administration***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Coordinate
 annual updates to prospectus and statement of additional information, including coordination
 of standard layout and printing of prospectus

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) File
 Forms N-CSR and N-PX

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Coordinate
 EDGARization and filing of SEC documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Make
 filings required to be made with the New York Stock Exchange ("NYSE") or
 any other exchange on which shares of Fund are listed

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Compile
 and distribute quarterly board meeting materials

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Attend
 quarterly board meetings telephonically and prepare first drafts of quarterly meeting
 minutes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Facilitate
 meetings of shareholders, prepare proxy statements and related materials in connection
 with shareholder meetings

***Compliance Administration***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Perform
 daily prospectus & SAI, SEC & RIC investment restriction monitoring

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Provide
 daily warning/Alert notification with supporting documentation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Provide
 daily and quarterly compliance (RIC and IRS) testing certification to Board of Trustees

***Subsidiary Services***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. <u>General Administration</u>. ALPS shall conduct and be responsible for: (1) the day-to-day administration, reporting and business of the Fund; (2) determining and notifying Management of the daily net asset value of the Fund, and the number of shares in issue; (3) tracking the deposit and payment of funds at the Fund's designated custodian; (4) preparing letters for an authorized persons' signature or otherwise facilitating the authorizations of payments of fees and expenses of service providers and Management; (5) completing all necessary compliance and reporting for the Fund as agreed to with Management; and (6) maintaining the customary financial and accounting books and records of the Fund, inclusive of expense budgets and expense accruals. ALPS will provide Management with ALPS' administration procedures and policies to be followed in the servicing of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. <u>Share Registry</u>. ALPS shall act as registrar and transfer agent with respect to the Fund's shares and, in that capacity, shall: (1) process the issuance, transfer, conversion, redemption and cancellation of shares and maintaining appropriate shareholder registers and ledgers; (2) perform anti-money laundering due diligence regarding the identity of the investors and their sources of funds in accordance with Appendix I hereto and the relevant laws and regulations of the United States; (3) on a timely basis report daily valuations to Management and publish on the Fund's website; and (4) respond to the Fund and Management. The Fund will be required to open and maintain an account with a bank with financial controls as approved by ALPS for processing subscriptions and redemptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c. Management will provide ALPS a daily trade blotter in electronic form and ALPS will use such input as its data source for transactions. Those transactions will be reconciled with brokerage/custodian reports and discrepancies reported when found.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. <u>Underlying Manager Reports</u>. If applicable, ALPS will solicit and collect monthly valuations of interests in other private investment entities ("sub-managers") from the managers of such entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. <u>Fund Accounting</u>. ALPS will administer the Fund in accordance with the Fund's Governing Documents' accounting procedures and policies agreed to by Management. ALPS will provide Management with ALPS' accounting procedures and policies to be followed in the servicing of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. <u>Cash Activity</u>. Management will, on a timely basis, provide ALPS with details of purchases and redemptions of the Fund shares by the Fund participants (if applicable), and other cash activity for each day, using ALPS -provided spreadsheets formatted for that purpose. ALPS will then calculate and provide to the Fund a schedule of payments to redeeming participants.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. <u>Financial Controls</u>. The Fund will inform ALPS through written communications (e.g., letter, electronic mail) of all Fund expenses and anticipated capital redemptions. ALPS will prepare "letters of authorization" ("LOAs") for the Fund to direct the custodian regarding cash disbursements for such expenses and capital redemptions, and, in support of the Fund's financial controls, respond to custodian's inquiries regarding ALPS' preparation of such LOAs. The Fund and ALPS may enter into agreements with the Fund's designated custodian as necessary to permit ALPS to verify wire instructions; however, ALPS shall not have authority to transfer funds. ALPS shall not have custody of the Fund capital.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h. <u>Fund Financials, Audits and Tax Preparatory Work</u>. On a timely basis, ALPS will prepare all necessary supporting schedules for year-end audit and tax preparation (if applicable) and furnish all available financial records requested by the Fund's independent auditor in such detail as such auditor and tax preparer may reasonably request. ALPS will prepare annual and semi-annual financial statements for Fund approval. ALPS will not be responsible for preparing necessary tax forms and tax returns as required by the Fund. As agreed to in the Administration Agreement, ALPS may provide certain tax services to the U.S. Fund that incorporate certain tax characteristics of the Fund.

**Notes and Terms to SS&C ALPS Services**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. SS&C
ALPS agrees to maintain at all times a program reasonably designed to prevent violations of the federal securities laws (as defined
in Rule 38a-1 under the 1940 Act) with respect to the Services provided hereunder, and shall provide to the Fund a certification
to such effect no less frequently than quarterly or as otherwise reasonably requested by the Fund. SS&C ALPS shall make available
its compliance personnel and shall provide at its own expense summaries and other relevant materials relating to such program
as reasonably requested by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Portfolio
compliance with: (i) the investment objective and certain policies and restrictions as disclosed in the Fund's prospectus
and statement of additional information, as applicable; and (ii) certain SEC rules and regulations (collectively, "Portfolio
Compliance") is required daily and is the responsibility of the Fund or its Management, as applicable. ALPS will perform
Portfolio Compliance testing (post-trade, daily on a T+2 basis) to test the Fund's Portfolio Compliance (the "Portfolio
Compliance Testing"). The frequency and nature of the Portfolio Compliance Testing and the methodology and process in accordance
with which the Portfolio Compliance Testing are conducted, are mutually agreed to between ALPS and the investment adviser. ALPS
will report violations, if any, to the investment adviser and the Fund's Chief Compliance Officer as promptly as practicable
following discovery.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. SS&C
ALPS independently tests Portfolio Compliance based upon information contained in the source reports received by SS&C ALPS'
fund accounting department and supplemental data from certain third-party sources. As such, Portfolio Compliance Testing performed
by SS&C ALPS is limited by the information contained in the fund accounting source reports and supplemental data from third-party
sources. The investment adviser agrees and acknowledges that SS&C ALPS' performance of the Portfolio Compliance Testing
shall not relieve the Fund or its Management of their primary day-to-day responsibility for assuring such Portfolio Compliance,
including on a pre-trade basis, and SS&C ALPS shall not be held liable for any act or omission of the Fund or its Management
as applicable, with respect to Portfolio Compliance, except to the extent resulting solely from the bad faith, gross negligence,
willful misconduct or fraud of SS&C ALPS Associates in the performance of SS&C ALPS' duties or obligations under
this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
Fund acknowledges that SS&C ALPS may rely on and shall have no responsibility to validate the existence of assets reported
by the Fund, its Management, the Fund's custodian or other Fund service provider, other than SS&C ALPS' completion
of a reconciliation of the assets reported by the Partiers or as otherwise provided for under this Agreement. Except as otherwise
provided for herein, the Fund acknowledges that it is the sole responsibility of the Fund to validate the existence of assets
reported to SS&C ALPS. SS&C ALPS may rely, and has no duty to investigate the representations of the Fund, its Management,
the Fund's custodian or other Fund service provider.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. SS&C
ALPS shall utilize one or more pricing services, as directed by the Fund. The Fund shall identify in writing to SS&C ALPS
the pricing service(s) to be utilized on behalf of the Fund. For those securities where prices are not provided by the pricing
service(s), the Fund shall approve the method for determining the fair value of such securities and shall determine or obtain
the valuation of the securities in accordance with such method and shall deliver to SS&C ALPS the resulting price(s) . In
the event the Fund desires to provide a price that varies from the price provided by the pricing service(s), the Fund shall promptly
notify and supply SS&C ALPS with the valuation of any such security on each valuation date. All pricing changes made by the
Fund will be provided to SS&C ALPS in writing or e-mail and must specifically identify the securities to be changed by security
identifier, name of security, new price or rate to be applied, and, if applicable, the time period for which the new price(s)
is/are effective.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.**  **<u>SS&C DST Shareholder Recordkeeping, Transfer Agency and Investor Relations Services and Terms</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. SS&C
 DST utilizing the TA2000 System will perform the following services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) issue,
 transfer and redeem book entry shares or cancelling share certificates as applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) maintain
 shareholder accounts on the records of the Fund on the TA2000 System in accordance with
 the instructions and information received by SS&C DST from the Fund, the Fund's distributor,
 manager or managing dealer, the Fund's investment adviser, the Fund's custodian,
 or the Fund's administrator and any other person whom the Fund names on <u>Schedule B</u> (each an "Authorized Person"), broker-dealers or shareholders;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) when
 and if the Fund participates in the DTCC, and to the extent SS&C DST supports the
 functionality of the applicable DTCC program:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) accept
 and effectuate the registration and maintenance of accounts through the Program and the
 purchase, redemption, exchange and transfer of shares in such accounts through systems
 or applications offered via the Program in accordance with instructions transmitted to
 and received by SS&C DST by transmission from DTCC on behalf of broker-dealers and
 banks which have been established by, or in accordance with the instructions of, an Authorized
 Person, on the Dealer File maintained by SS&C DST,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) issue
 instructions to the Fund's banks for the settlement of transactions between the
 Fund and DTCC (acting on behalf of its broker-dealer and bank participants),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) provide
 account and transaction information from the Fund's records on TA2000 in accordance
 with the applicable Program's rules, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) maintain
 shareholder accounts on TA2000 through the Programs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) provide
 transaction journals;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) once
 annually prepare shareholder meeting lists for use in connection with the annual meeting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Withhold,
 as required by federal law, taxes on securityholder accounts, perform and pay backup
 withholding as required for all securityholders, and prepare, file and provide, in electronic
 format, the applicable U.S. Treasury Department information returns or K-1 data file,
 as applicable, to the Fund's vendor of choice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) disburse
 income dividends and capital gains distributions to shareholders and record reinvestment
 of dividends and distributions in shares of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) prepare
 and provide, in electronic format, to the Fund's print vendor of choice:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) confirmation
 forms for shareholders for all purchases and liquidations of shares of the Fund and other
 confirmable transactions in shareholders' accounts,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) copies
 of shareholder statements, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) shareholder
 reports and prospectuses provided by the Fund;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) provide
 or make available on-line daily and monthly reports as provided by the TA2000 System
 and as requested by the Fund or Management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) maintain
 those records necessary to carry out SS&C DST's duties hereunder, including all information
 reasonably required by the Fund to account for all transactions on TA2000 in the Fund
 shares;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) calculate
 the appropriate sales charge, if applicable and supported by TA2000, with respect to
 each purchase of the Fund shares as instructed by an Authorized Person, determining the
 portion of each sales charge payable to the dealer participating in a sale in accordance
 with schedules and instructions delivered to SS&C DST by the Fund's managing dealer
 or distributor or any other Authorized Person from time to time, disbursing dealer commissions
 collected to such dealers, determining the portion of each sales charge payable to such
 managing dealer and disbursing such commissions to the managing dealer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xii) receive
 correspondence pertaining to any former, existing or new shareholder account, processing
 such correspondence for proper recordkeeping, and responding to shareholder correspondence;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiii) arrange
 the mailing to dealers of confirmations of wire order trades;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xiv) process,
 generally on the date of receipt, purchases, redemptions, exchanges, or instructions,
 as applicable, to settle any mail or wire order purchases, redemptions or exchanges received
 in proper order as set forth in the prospectus and general exchange privilege applicable,
 and reject any requests not received in proper order (as defined by an Authorized Person
 or the Procedures as hereinafter defined);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xv) provide
 to the Fund escheatment reports as requested by an Authorized Person with respect to
 the status of accounts and outstanding checks on TA2000;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvi) as
 mutually agreed upon by the parties as to the service scope and fees, answer telephone
 inquiries during mutually agreed upon times, each day on which the New York Stock Exchange
 is open for trading. SS&C DST shall answer and respond to inquiries from existing
 shareholders, prospective shareholders of the Fund and broker-dealers on behalf of such
 shareholders in accordance with the telephone scripts provided by the Fund to SS&C
 DST, such inquiries may include requests for information on account set-up and maintenance,
 general questions regarding the operation of the Fund, general account information including
 dates of purchases, redemptions, exchanges and account balances, requests for account
 access instructions and literature requests;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xvii) support
 Fund repurchase offers, including but not limited to: assistance with shareholder communication
 plan; coordination of repurchase offer materials; establishment of informational website;
 receipt, review and reconciliation of letters of transmittal; daily tracking, reconciliation
 and reporting of shares tendered; and issuing tax forms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xviii) in
 order to assist the Fund with the Fund's anti-money laundering responsibilities
 under applicable anti-money laundering laws, SS&C DST offers certain risk-based shareholder
 activity monitoring tools and procedures that are reasonably designed to: (i) promote
 the detection and reporting of potential money laundering activities; and (ii) assist
 in the verification of persons opening accounts with the Fund. The Fund elects to have
 SS&C DST implement the anti-money laundering procedures and delegate the day-to-day
 operation of such anti-money laundering procedures to SS&C DST, the parties will
 agree to upon the applicable fees and the service scope and execute the attached appendix
 (" <u>Appendix I</u> " entitled "AML Delegation") which may be
 changed from time to time subject to mutual written agreement between the parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xix) as
 mutually agreed upon by the Parties as to the service scope and fees, SS&C DST shall
 carry out certain information requests, analyses and reporting services in support of
 the Fund's obligations under Rule 22c-2(a)(2). The parties will agree to such services
 and terms as stated in the attached appendix (" <u>Appendix II</u> " entitled
 "Omnibus Transparency Services") that may be changed from time to time subject
 to mutual written agreement between the Parties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xx) as
 mutually agreed upon by the Parties as to the service scope and fees, provide any additional related
services (i.e., pertaining to escheatments, abandoned property, garnishment orders, bankruptcy
and divorce proceedings, Internal Revenue Service or state tax authority tax levies and summonses and all matters relating to
the foregoing); and

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xxi) upon
 request of the Fund and mutual agreement between the Parties as to the scope and any
 applicable fees, SS&C DST may provide additional services to the Fund under the terms
 of this Schedule and the Agreement. Such services and fees shall be set forth in writing
 and may be added by an amendment to, or as a statement of work under, this Schedule or
 the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. At
 the request of an Authorized Person, SS&C DST shall use reasonable efforts to provide
 the services set forth in Section C.1 of this Schedule A in connection with transactions
 (i) the processing of which transactions require SS&C DST to use methods and procedures
 other than those usually employed by SS&C DST to perform shareholder servicing agent
 services, (ii) involving the provision of information to SS&C DST after the commencement
 of the nightly processing cycle of the TA2000 System or (iii) which require more manual
 intervention by SS&C DST, either in the entry of data or in the modification or amendment
 of reports generated by the TA2000 System than is usually required by normal transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. SS&C
 DST shall use reasonable efforts to provide the same services with respect to any new,
 additional functions or features or any changes or improvements to existing functions
 or features as provided for in the Fund's instructions, prospectus or application as
 amended from time to time, for the Fund, provided SS&C DST is advised in advance
 by the Fund of any changes therein and the TA2000 System and the mode of operations utilized
 by SS&C DST as then constituted supports such additional functions and features.
 If any new, additional function or feature or change or improvement to existing functions
 or features or new service or mode of operation materially increases SS&C DST's cost
 of performing the services required hereunder at the current level of service, SS&C
 DST shall advise the Fund of the amount of such increase and if the Fund elects to utilize
 such function, feature or service, SS&C DST shall be entitled to increase its fees
 by the amount of the increase in costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 Fund acknowledges that SS&C DST is currently using, and will continue to use, SS&C
 Affiliates to assist with software development and support projects for SS&C DST
 and/or for the Fund. As part of such support, the Fund acknowledges that such SS&C
 Affiliates may access the Fund Confidential Information including, but not limited to,
 personally identifiable shareholder information (shareholder name, address, social security
 number, account number, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The
 Fund shall add all new funds to the TA2000 System upon at least 60 days' prior
 written notice to SS&C DST provided that the requirements of the new funds are generally
 consistent with services then being provided by SS&C DST under the Agreement. If
 less than 60 days' prior notice is provided by the Fund, additional 'rush'
 fees may be applied by SS&C DST. Rates or charges for additional funds shall be as
 set forth in Fee Letter for the remainder of the contract term except as such funds use
 functions, features or characteristics for which SS&C DST has imposed an additional
 charge as part of its standard pricing schedule. In the latter event, rates and charges
 shall be in accordance with SS&C DST's then-standard pricing schedule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. The
 parties agree that to the extent that SS&C DST provides any services under the Agreement
 that relate to compliance by the Fund with the Code (or any other applicable tax law),
 it is the parties' mutual intent that SS&C DST will provide only printing,
 reproducing, and other mechanical assistance to the Fund and that SS&C DST will not
 make any judgments or exercise any discretion of any kind. The Fund agrees that it will
 provide express and comprehensive instructions to SS&C DST in connection with all
 of the services that are to be provided by SS&C DST under the Agreement that relate
 to compliance by the Fund with the Code (or any other applicable tax law), including
 providing responses to requests for direction that may be made from time to time by SS&C
 DST of the Fund in this regard.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. The
 Fund instructs and authorizes SS&C DST to provide the services as set forth in the
 Agreement in connection with transactions on behalf of certain IRAs featuring the Fund
 made available by the Fund. The Fund acknowledges and agrees that as part of such services,
 SS&C DST will act as service provider to the custodian for such IRAs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8. If
 applicable, SS&C DST will make original issues of shares, or if shares are certificated,
 stock certificates upon written request of an officer of the Fund and upon being furnished
 with a certified copy of a resolution of the Board of Trustees authorizing such original
 issue, evidence regarding the value of the shares, and necessary funds for the payment
 of any original issue tax.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9. Upon
 receipt of the Fund's written request, SS&C DST shall provide transmissions
 of shareholder activity to the print vendor selected by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10. If
 applicable, the Fund will furnish SS&C DST with a sufficient supply of blank stock
 certificates and from time to time will renew such supply upon the request of SS&C
 DST. Such certificates will be signed manually or by facsimile signatures of the officers
 of the Fund authorized by law and by bylaws to sign stock certificates, and if required,
 will bear the corporate seal or facsimile thereof. In the event that certificates for
 shares of the Fund shall be represented to have been lost, stolen or destroyed, SS&C
 DST, upon being furnished with an indemnity bond in such form and amount and with such
 surety as shall be reasonably satisfactory to it, is authorized to countersign a new
 certificate or certificates for the number of shares of the Fund represented by the lost
 or stolen certificate. In the event that certificates of the Fund shall be represented
 to have been lost, stolen, missing, counterfeited or recovered, SS&C DST shall file
 Form X-17F-1A as required by applicable federal securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11. Shares
 of stock will be transferred in accordance with the instructions of the shareholders
 and, upon receipt of the Fund's instructions that shares of stock be redeemed and
 funds remitted therefor, such redemptions will be accomplished and payments dispatched
 provided the shareholder instructions are deemed by SS&C DST to be duly authorized.
 SS&C DST reserves the right to refuse to transfer, exchange, sell or redeem shares
 as applicable, until it is satisfied that the request is authorized, or instructed by
 the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12. <u>Changes and Modifications.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) SS&C
 DST shall have the right, at any time, to modify any systems, programs, procedures or
 facilities used in performing its obligations hereunder; provided that the Fund will
 be notified as promptly as possible prior to implementation of such modifications and
 that no such modification or deletion shall materially adversely change or affect the
 operations and procedures of the Fund in using the TA2000 System hereunder, the Services
 or the quality thereof, or the reports to be generated by such system and facilities
 hereunder, unless the Fund is given thirty (30) days' prior notice to allow the
 Fund to change its procedures and SS&C DST provides the Fund with revised operating
 procedures and controls.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) All
 enhancements, improvements, changes, modifications or new features added to the TA2000
 System however developed or paid for, including, without limitation, Client Requested
 Software (collectively, "Deliverables"), shall be, and shall remain, the
 confidential and exclusive property of, and proprietary to, SS&C DST. The parties
 recognize that during the Term of this Agreement the Fund will disclose to SS&C DST
 Confidential Information and SS&C DST may partly rely on such Confidential Information
 to design, structure or develop one or more Deliverables. Provided that, as developed,
 such Deliverable(s) contain no Confidential Information that identifies the Fund or any
 of its investors or which could reasonably be expected to be used to readily determine
 such identity, (i) the Fund hereby consents to SS&C DST's use of such Confidential
 Information to design, to structure or to determine the scope of such Deliverable(s)
 or to incorporate into such Deliverable(s) and that any such Deliverable(s), regardless
 of who paid for it, shall be, and shall remain, the sole and exclusive property of SS&C
 DST and (ii) the Fund hereby grants SS&C DST a perpetual, nonexclusive license to
 incorporate and retain in such Deliverable(s) Confidential Information of the Fund. All
 Confidential Information of the Fund shall be and shall remain the property of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13. <u>Fund Obligations</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The
 Fund agrees to use its reasonable efforts to deliver to SS&C DST in Kansas City,
 Missouri, as soon as they are available, all of its shareholder account records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The
 Fund will provide SS&C DST written notice of any change in Authorized Personnel as
 set forth on <u>Schedule B</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 Fund will notify SS&C DST of material changes to its Articles of Incorporation, Declaration
 of Trust, Bylaws or similar governing document (e.g. in the case of recapitalization)
 that impacts the services provided by SS&C DST under the Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) If
 at any time the Fund receives notice or becomes aware of any stop order or other proceeding
 in any such state affecting such registration or the sale of the Fund's shares, or of
 any stop order or other
proceeding under the federal securities laws affecting the sale of the Fund's shares, the Fund or Sponsor will give prompt notice
thereof to SS&C DST.

21 of 32

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14. <u>Compliance</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) SS&C
 DST shall perform the services under this Schedule A in conformance with SS&C DST's
 present procedures as set forth in its Procedures with such changes or deviations therefrom
 as may be from time to time required or approved by the Fund or Management<sup>1</sup>,
 or its or SS&C DST's counsel and the rejection of orders or instructions not in good
 order in accordance with the applicable prospectus or the Procedures. Notwithstanding
 the foregoing, SS&C DST's obligations shall be solely as are set forth in this
 Schedule and any of other obligations of the Fund under applicable law that SS&C
 DST has not agreed to perform on the Fund's behalf under this Schedule or the Agreement
 shall remain the Fund's sole obligation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;15. <u>Bank Accounts</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) SS&C
 DST, acting as agent for the Fund, is authorized (1) to establish in the name of, and
 to maintain on behalf of, the Fund, on the usual terms and conditions prevalent in the
 industry, including limits or caps (based on fees paid over some period of time or a
 flat amount, as required by the affected Bank on the maximum liability of such Banks
 into which SS&C DST shall deposit the funds SS&C DST receives for payment of
 dividends, distributions, purchases of the Fund shares, redemptions of the Fund shares,
 commissions, corporate re-organizations (including recapitalizations or liquidations)
 or any other disbursements made by SS&C DST on behalf of the Fund provided for in
 this Schedule A, (2) to draw checks upon such accounts, to issue orders or instructions
 to the Bank for the payment out of such accounts as necessary or appropriate to accomplish
 the purposes for which such funds were provided to SS&C DST, and (3) to establish,
 to implement and to transact Fund business through ACH, draft processing, wire transfer
 and any other banking relationships, arrangements and agreements with such Bank as are
 necessary or appropriate to fulfill SS&C DST's obligations under the Agreement.
 SS&C DST, acting as agent for the Fund, is also hereby authorized to execute on behalf
 and in the name of the Fund, on the usual terms and conditions prevalent in the industry,
 including limits or caps (based on fees paid over some period of time or a flat amount,
 as required by the affected Bank) on the maximum liability of such Banks, agreements
 with banks for ACH, wire transfer, draft processing services, as well as any other services
 which are necessary or appropriate for SS&C DST to utilize to accomplish the purposes
 of this Schedule. In each of the foregoing situations the Fund shall be liable on such
 agreements with the Bank as if it itself had executed the agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SS&C
 DST is authorized and directed to stop payment of checks theretofore issued hereunder,
 but not presented for payment, when the payees thereof allege either that they have not
 received the checks or that such checks have been mislaid, lost, stolen, destroyed or
 through no fault of theirs, are otherwise beyond their control, and cannot be produced
 by them for presentation and collection, and, to issue and deliver duplicate checks in
 replacement thereof.

22 of 32

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;16. <u>Records</u>.
 SS&C DST will maintain customary transfer agent records in connection with its agency
 in accordance with the transfer agent recordkeeping requirements under the 1934 Act,
 and particularly will maintain those records required to be maintained pursuant to subparagraph
 (2) (iv) of paragraph (b) of Rule 31a-1 under the 1940 Act, if any. Notwithstanding anything
 in the Agreement to the contrary, the records to be maintained and preserved by SS&C
 DST on the TA2000 System under the Agreement shall be maintained and preserved in accordance
 with the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Annual
 purges by August 31: SS&C DST and the Fund shall mutually agree upon a date for the
 annual purge of the appropriate history transactions from the Transaction History (A88)
 file for accounts (both regular and tax advantaged accounts) that were open as of January
 1 of the current year, such purge to be complete no later than August 31<sup>2</sup>.
 Purges completed after this date will subject the Fund to the Aged History Retention
 fees set forth in the Fee Schedule attached hereto as <u>Fee Letter</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Purge
 criteria: In order to avoid the Aged History Retention fees, history data for regular
 or ordinary accounts (that is, non-tax advantaged accounts) must be purged if the confirmation
 date of the history transaction is prior to January 1 of the current year and history
 data for tax advantaged accounts (retirement and educational savings accounts) must be
 purged if the confirmation date of the history transaction is prior to January 1 of the
 prior year. All purged history information shall be retained on magnetic tape for seven
 (7) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Purged
 history retention options (entail an additional fee): For the additional fees set forth
 on the Fee Schedule attached hereto as <u>Fee Letter</u>, or as otherwise mutually agreed,
 then Fund may choose (i) to place purged history information on the Purged Transaction
 History (A19) table or (ii) to retain history information on the Transaction History
 (A88) file beyond the timeframes defined above. Retaining information on the A19 table
 allows for viewing of this data through online facilities and E-Commerce applications.
 This database does not support those histories being printed on statements and reports
 and is not available for on request job executions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;17. <u>Disposition of Books, Records and Canceled Certificates.</u> SS&C DST may send periodically to
 the Fund, or to where designated by the Fund, all books, documents, and all records no
 longer deemed needed for current purposes, upon the understanding that such books, documents,
 and records will be maintained by the Fund under and in accordance with the requirements
 of applicable federal securities laws. Such materials will not be destroyed by the Fund
 without the consent of SS&C DST (which consent will not be unreasonably withheld),
 but will be safely stored for possible future reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.**  **<u>Creative Services</u>** 

***Web Development, Maintenance & Hosting***

● ALPS will provide development, maintenance and hosting for the website on behalf of the Client site. The development and build will be based on content and brand guidelines as provided by Client. ALPS will work closely with Client to ensure messaging and layout is approved for all projects. Project completion will be based on the receipt of required content and approvals from Client.

**Web Design, Development and Maintenance – Project Scope to Include** 

● Completed with the use of an ALPS base template *(custom site will incur additional hours and fees)* 

○ Framework, navigation and dynamic elements as coded

○ Minor updates to CSS, hero images, font and colors

● Maintenance and Hosting of website

● All content and data to be reviewed/provided and approved by Client to ALPS

● Screen shots of edits, requested by Client, will be provided to Client for the needed compliance review (if applicable) and approval process

<sup>2</sup> TBD.

23 of 32

**SSL Certificate – Secured Website Project Scope**

● As the domain owner, to facilitate and place an SSL certificate for the URL/Fund website and required server updates, Client will be responsible as communicated by ALPS to complete the certificate / domain process

***Digital and Print Creative Solutions***

● ALPS will provide design and production of requested digital and print marketing materials on an ad-hoc basis or scheduled basis.

**Project Scope to include:** Quarterly Fact Sheets

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.**  **<u>Miscellaneous</u>** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Notwithstanding
 anything to the contrary in this Agreement, SS&C:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Does
 not maintain custody of any cash or securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Does
 not have the ability to authorize transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Does
 not have the authority to enter into contracts on behalf of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) Is
 not responsible for determining the valuation of the Fund's<sup>3</sup> assets
 and liabilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) Does
 not perform any management functions or make any management decisions with regard to
 the operation of the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) Is
 not Fund's tax advisor and does not provide any tax advice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) Is
 not obligated to perform any additional or materially different services due to changes
 in law or audit guidance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. If
 SS&C allows Fund, Management, investors or their respective agents and representatives
 (" <u>Users</u> ") to (i) receive information and reports from SS&C and/or
 (ii) issue instructions to SS&C via web portals or other similar electronic mechanisms
 hosted or maintained by SS&C or its agents (" <u>Web Portals</u> "):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Access
 to and use of Web Portals by Users shall be subject to the proper use by Users of usernames,
 passwords and other credentials issued by SS&C (" <u>User Credentials</u> ")
 and to the additional terms of use that are noticed to Users on such Web Portals. The
 Fund shall be solely responsible for the results of any unauthorized use, misuse or loss
 of User Credentials by their authorized Users and for compliance by such Users with the
 terms of use noticed to Users with respect to Web Portals, and shall notify SS&C
 promptly upon discovering any such unauthorized use, misuse or loss of User Credentials
 or breach by the Fund or their authorized Users of such terms of use. Any change in the
 status or authority of an authorized User communicated by the Fund shall not be effective
 until SS&C has confirmed receipt and execution of such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) SS&C
 grants to the Fund a limited, non-exclusive, non-transferable, non-sublicenseable right
 during the term of this Agreement to access Web Portals solely for the purpose of accessing
 Client Data and, if applicable, issue instructions. The Fund will ensure that any use
 of access to any Web Portal is in accordance with SS&C's terms of use, as noticed
 to the Users from time to time. This license does not include: (i) any right to access
 any data other than Client Data; or (ii) any license to any software.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) The
 Fund will not (A) permit any third party to access or use the Web Portals through any
 time-sharing service, service bureau, network, consortium, or other means; (B) rent,
 lease, sell, sublicense, assign, or otherwise transfer its rights under the limited license
 granted above to any third party, whether by operation of law or otherwise; (C) decompile,
 disassemble, reverse engineer, or attempt to reconstruct or discover any source code
 or underlying ideas or algorithms associated with
the Web Portals by any means; (D) attempt to modify or alter the Web Portal in any manner; or (E) create derivative works based
on the web portal. Neither Fund nor Management will remove (or allow to be removed) any proprietary rights notices or disclaimers
from the Web Portal or any reports derived therefrom.

<sup>3</sup> TBD

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) SS&C
 reserves all rights in SS&C systems and in the software that are not expressly granted
 to the Fund hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) SS&C
 may discontinue or suspend the availability of any Web Portals at any time without prior
 notice; SS&C will endeavor to notify Fund as soon as reasonably practicable of such
 action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Notwithstanding
 anything in this Agreement to the contrary, the Fund has ultimate authority over and
 responsibility for its tax matters and financial statement tax disclosures. All memoranda,
 schedules, tax forms and other work product produced by SS&C are the responsibility
 of the Fund and are subject to review and approval by the Fund and Fund's auditors,
 or tax preparers, as applicable and SS&C bears no responsibility for reliance on
 tax calculations and memoranda prepared by SS&C.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. SS&C
 shall provide reasonable assistance to responding to due diligence and analogous requests
 for information from investors and prospective investors (or others representing them);
 provided, that SS&C may elect to provide these services only upon Fund agreement
 in writing to separate fees in the event responding to such requests becomes, in SS&C's
 sole discretion, excessive.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Reports
 and information shall be deemed provided to the Fund if they are made available to the
 Fund online through SS&C's portal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.**  **<u>Report Modernization Terms and Conditions</u>** 

In addition to the terms and conditions of the Agreement, the below terms and conditions apply to the provision of the following Services (the listed Services known as "Modern Data Services"):

● Preparation and Filing of Form N-PORT and Form N-CEN

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. In
 connection with completion of the Modern Data Services, Market Data may be supplied to
 the Fund through an ALPS Associate(s) or directly by a Data Supplier (for the purposes
 of this appendix, Data Supplier shall include the Data Supplier's third party suppliers).
 Any Market Data being provided to the Fund by ALPS or a Data Supplier is being supplied
 for the sole purpose of assisting the completion of the Modern Data Services. Accordingly,
 the Fund acknowledges that Market Data is proprietary to ALPS Associates and/or the Data
 Suppliers and is provided on a limited internal-use license basis. Market Data may not
 be disseminated by the Fund to any other affiliated or non-affiliated entity, used to
 populate internal systems or to create a historical database, or for any other purpose
 in lieu of the Fund obtaining a data license from ALPS Associates or Data Supplier, as
 applicable. The Fund accepts responsibility for, and acknowledges it exercises its own
 independent judgment in, the selection of the Data Supplier(s) to provide the Market
 Data, its selection of the use or intended use of such, and any results obtained. Access
 to and delivery of Market Data is dependent on the Data Suppliers and may be interrupted
 or discontinued with or without notice to the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Fund acknowledges that (i) the Market Data is intended for use as an aid to institutional
 investors, registered brokers or professionals of similar sophistication in making informed
 judgments concerning characteristics of certain securities; and (ii) the Data Supplier
 and/or ALPS Associate(s), as applicable, holds all title, license, copyright or similar
 intellectual property rights in the Market Data.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. No
 ALPS Associate or Data Supplier will have any liability for errors, omissions or malfunctions
 in the Market Data, except that ALPS will endeavor, upon receipt of notice from the Fund,
 to correct a malfunction, error, or omission in the Market Data utilized in the Modern
 Data Services that is identified by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Notwithstanding
 anything in this Agreement to the contrary, no ALPS Associate nor Data Supplier shall
 be liable to the Fund or any other Person for any Losses related, directly or indirectly,
 to the Market Data, the provision
of (or failure to provide) the Market Data, and/or the reliance by an ALPS Associate(s), Fund or any other Person on such Market
Data.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Notwithstanding
 anything in this Agreement to the contrary, as it relates to the provision of the Modern
 Data Services, no ALPS Associate nor Data Supplier shall be liable for (i) any special,
 indirect or consequential damages (even if advised of the possibility of such), (ii)
 any delay by reason of circumstances beyond its control, including acts of civil or military
 authority, national emergencies, labor difficulties, fire, mechanical breakdown, flood
 or catastrophe, acts of God, insurrection, war, riots, or failure beyond its control
 of transportation or power supply, or (iii) any claim that arose more than one year prior
 to the institution of suit therefor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. THE
 FUND ACCEPTS THE MARKET DATA AS IS AND NO ALPS ASSOCIATE OR ANY DATA SUPPLIER MAKE ANY
 WARRANTIES, EXPRESS OR IMPLIED, AS TO MERCHANTABILITY, FITNESS OR ANY OTHER MATTER RELATED
 TO THE MARKET DATA.

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**SCHEDULE B**

**AUTHORIZED PERSONNEL**

Pursuant to the terms of the Schedule A and the Agreement between the Fund and SS&C DST, the Fund authorizes the following Fund personnel to provide instructions to SS&C DST, and receive inquiries from SS&C DST in connection with Schedule A and the Agreement:

---

| | |
|:---|:---|
| **Name** | **Title** |

---

This Schedule may be revised by the Fund by providing SS&C DST with a substitute Schedule B. Any such substitute Schedule B shall become effective twenty-four (24) hours after SS&C DST's receipt of the document and shall be incorporated into the Agreement.

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**APPENDIX I**

**ANTI-MONEY LAUNDERING DELEGATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Delegation.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.1 In
 order to assist the Fund with the Fund's AML responsibilities under applicable
 AML laws, SS&C DST offers certain risk-based AML Procedures that are reasonably designed
 to: (i) promote the detection and reporting of potential money laundering activities;
 and (ii) assist in the verification of persons opening accounts with the Fund. The Fund
 has had an opportunity to review the AML Procedures with SS&C DST and desires to
 implement the AML Procedures as part of the Fund's overall AML program.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.2 Accordingly,
 subject to the terms and conditions set forth in this Agreement, the Fund hereby instructs
 and directs SS&C DST to implement the AML Procedures as set forth in Section 4 below
 on the Fund's behalf and delegates to SS&C DST the day-to-day operation of
 the AML Procedures. The AML Procedures set forth in Section 4 may be amended, from time
 to time, by mutual agreement of the Fund and SS&C DST upon the execution by such
 parties of a revised Appendix I bearing a later date than the date hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.3 SS&C
 DST agrees to perform such AML Procedures, with respect to the ownership of Shares in
 the Fund for which SS&C DST maintains the applicable shareholder information, subject
 to and in accordance with the terms and conditions of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Consent to Examination.</u> In connection with the performance by SS&C DST of the AML Procedures,
 SS&C DST understands and acknowledges that the Fund remains responsible for assuring
 compliance with the Uniting and Strengthening America by Providing Appropriate Tools
 Required to Intercept and Obstruct Terrorism Act of 2001 ()"**USA PATRIOT Act")** and that the records SS&C DST maintains for the Fund relating to the AML Program
 may be subject, from time to time, to examination and/or inspection by federal regulators
 in order that the regulators may evaluate such compliance. SS&C DST hereby consents
 to such examination and/or inspection and agrees to cooperate with such federal examiners
 in connection with their review. For purposes of such examination and/or inspection,
 SS&C DST will use its best efforts to make available, during normal business hours
 and on reasonable notice all required records and information for review by such examiners.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Limitation on Delegation.</u> The Fund acknowledges and agrees that in accepting the delegation
 hereunder, SS&C DST is agreeing to perform only the AML Procedures, as may be amended
 from time to time, and is not undertaking and shall not be responsible for any other
 aspect of the AML Program or for the overall compliance by the Fund with the USA PATRIOT
 Act or for any other matters that have not been delegated hereunder. Additionally, the
 parties acknowledge and agree that SS&C DST shall only be responsible for performing
 the AML Procedures with respect to the ownership of, and transactions in, Shares in the
 Fund for which SS&C DST maintains the applicable Shareholder information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>AML Procedures<sup>4</sup></u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.1 Consistent
 with the services provided by SS&C DST and with respect to the ownership of Shares
 in the Fund for which SS&C DST maintains the applicable Shareholder information,
 SS&C DST shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) On a daily basis, submit all new customer account registrations and registration changes against the Office of Foreign Assets Control ("OFAC") database, the Politically Exposed Persons ("PEP") database, and such other lists or databases as may be required from time to time by applicable regulatory authorities;

<sup>4</sup> The accounts, transactions, items and activity reviewed in each case are subject to certain standard exclusions as set forth in written procedures of SS&C DST, which have been made available to the Fund and which may be modified from time to time.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Submit all account registrations through OFAC database, the PEP database, and such other lists or databases as may be required from time to time by applicable regulatory authorities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On a daily basis, submit special payee information from checks, outgoing wires and systematic withdrawal files through the OFAC database;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Review certain types of redemption transactions that occur within thirty-four (34) days of an account establishment, registration change, or banking information change (e.g. redemption by wire within 34 days of banking information change; rapid depletion of account balance after establishment; and redemption by check within 34 days of address change);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) Review
 wires sent pursuant to banking instructions other than those on file with SS&C DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Review
 accounts with small balances followed by large purchases;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Review
 accounts with frequent activity within a specified date range followed by a large redemption;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Review purchase and redemption activity by check that meets or exceeds $100,000 threshold on any given day;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) Determine when a suspicious activity report ("SAR") should be filed as required by regulations applicable to mutual funds; prepare and file the SAR; provide the Fund with a copy of the SAR within a reasonable time after filing; and notify the Fund if any further communication is received from the U.S. Department of the Treasury or other law enforcement agencies regarding such filing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) Compare account information to any FinCEN request received by the Fund and provided to SS&C DST pursuant to USA PATRIOT Act Sec. 314(a). Provide the Fund with the necessary information for it to respond to such request within required time frame;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) (i) Take reasonable steps to verify the identity of any person seeking to become a new customer of the Fund and notify the Fund in the event such person cannot be verified, (ii) Maintain records of the information used to verify the person's identity, as required, and (iii) Determine whether the person appears on any lists of known or suspected terrorists or terrorist organizations provided to the Fund by any government agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) Except with respect to any entities excluded under applicable regulation: (i) take reasonable steps to verify the identity of legal entities seeking to become new customers of the Fund, including verifying the identity of the natural person(s) retaining ownership or controlling interest in such legal entity (the " Beneficial Owner(s)"), as such ownership and controlling interests are defined in 31 C.F.R. 1010.230, (ii) notify the Fund in the event that the identity of such Beneficial Owner(s) is not provided upon request to such entity or cannot be verified, (iii) maintain records of the information used to verify such Beneficial Owners, as required, and (iv) determine whether such persons appear on any lists of known or suspected terrorists or terrorist organizations provided to the Fund by any government agency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) Conduct due diligence and if required, enhanced due diligence in accordance with 31 C.F.R. 103.176(b) for new and existing correspondent accounts for foreign financial institutions (as defined in 31 C.F.R. 103.175). SS&C DST will perform an assessment of the money laundering risk presented by the account based on a consideration of relevant factors in accordance with applicable law and information provided by the foreign financial institution in a financial institution questionnaire. If an account is determined to have a medium or above risk-ranking, SS&C DST will monitor the account on a monthly basis for unusual activity. In the situation where due diligence cannot be completed with respect to an account, SS&C DST will contact the Fund's AML Officer for further instruction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) Upon the request by the Fund, conduct due diligence to determine if the Fund is involved with any foreign jurisdiction, institution, class of transactions and a type of account designated, from time to time, by the U.S. Department of Justice in order to identify and take certain "special measures" against such entities as required under Section 311 of the USA PATRIOT Act (31 C.F.R. 103.193).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o) Create and retain records required under 31 CFR 103.33 in connection with the transmittals of funds in amounts equal to or in excess of $3,000, and transmit such information on the transactions to the receiving financial institutions.

4.1 In the event that SS&C DST detects activity as a result of the foregoing procedures, which necessitates the filing by SS&C DST of a SAR or other similar report or notice to OFAC, then SS&C DST shall also immediately notify the Fund, unless prohibited by applicable law.

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**APPENDIX II**

**OMNIBUS TRANSPARENCY SERVICES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A. The
 Fund shall provide the following information to SS&C DST:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The
 name and contact information for the financial intermediary, with which the Fund have
 a "shareholder information agreement" (under which the financial intermediary
 agrees to provide, at the Fund's request, identity and transaction information
 about shareholders who hold their shares through an account with the financial intermediary
 (an "accountlet")), that is to receive an information request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. The
 Fund to be included, along with each Fund's frequency trading policy, under surveillance
 for the financial intermediary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. The
 frequency of supplemental data requests from SS&C DST;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The
 duration of supplemental data requests (e.g. 60 days, 90 days); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. The
 expected turnaround time for a response from the financial intermediary to an information
 request (including requests for supplemental data)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B. Upon
 receipt of the foregoing information, the Fund hereby authorize and instruct SS&C
 DST to perform the following services:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. <u>Financial Intermediary Surveillance Schedules.</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Create
a system profile and infrastructure based upon parameters set by the Fund to establish and maintain financial intermediary surveillance
schedules and communication protocol/links.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Initiate
 information requests to the financial intermediaries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. <u>Data Management Monitoring</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Monitor
 status of information requests until all supplemental data is received.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If
a Financial Intermediary does not respond to a second request from SS&C DST, the SS&C DST shall notify the Fund for the
Fund to follow-up with the financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. <u>Customized Reporting for Market Timing Analysis</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Run
information received from the financial intermediaries through TA2000 System functionalities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Generate
 exception reports using parameters provided by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. <u>Daily Exception Analysis of Market Timing Policies for Supplemental Data Provided</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Review
daily short-term trader exceptions, daily excessive trader exceptions, and daily supplemental data reconciliation exceptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Analyze
Financial Intermediary supplemental data (items), which are identified as "Potential Violations" based on parameters
established by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Confirm
exception trades and if necessary, request additional information regarding Potential Violations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. <u>Communication and Resolution of Market Timing Exceptions</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Communicate
results of analysis to the Fund or upon request of the Fund directly to the financial intermediary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Unless
otherwise requested by the Fund and as applicable, instruct the financial intermediary to (i) restrict trading on the accountlet, (ii)
cancel a trade, or (iii) prohibit future purchases or exchanges.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Update
 AWD work object with comments detailing resolution.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Keep
 a detailed record of all data exceptions and inquires with regards to potential violations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. <u>Management Reporting</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Provide
periodic reports, in accordance with agreed upon frequency and content parameters, to the Fund. As reasonably requested by the Fund,
SS&C DST shall furnish ad hoc reports to the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7. <u>Support Due Diligence Programs</u> 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Update
 system watch list with pertinent information on trade violators.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Maintain
 a detailed audit trail of all accounts that are blocked and reason for doing so.

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## Ex-99.(K)(2)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (k)(2)**

Execution Version

Dated as of July 20, 2021

SABA CAPITAL INCOME & OPPORTUNITIES FUND,

as the Pledgor

and

THE TORONTO-DOMINION BANK

as the Secured Party

SECURITY AGREEMENT

This Security Agreement is made on July 20, 2021 (this "<u>Security Agreement</u>") between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Saba
 Capital Income & Opportunities Fund, a Massachusetts business trust that is registered
 under the Investment Company Act as a closed-end management investment company (the " <u>Pledgor</u> ");
 and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) The
Toronto-Dominion Bank, as Secured Party (the " <u>Secured Party</u> ").

<u>W I T N E S S E T H</u>:

WHEREAS, the Pledgor and The Toronto-Dominion Bank, New York Branch (the "<u>Lender</u>") have entered into that certain Credit Agreement dated as of the date hereof (as amended, modified or supplemented from time to time, the "<u>Credit Agreement</u>");

WHEREAS, the Lender has agreed to provide financing to the Pledgor upon the terms and subject to the conditions set forth in the Credit Agreement;

WHEREAS, it is a condition precedent to the obligation of the Lender to provide financing to the Pledgor under the Credit Agreement that the Pledgor shall have executed and delivered this Security Agreement to the Secured Party;

WHEREAS, the Pledgor will derive direct and indirect benefits from the Credit Agreement; and

WHEREAS, the Pledgor is willing to enter this Security Agreement on the terms and conditions hereinafter provided.

NOW, THEREFORE, in consideration of the premises and to induce the Lender to enter into the Credit Agreement and to provide financing to the Pledgor, the Pledgor hereby agrees with the Secured Party as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Definitions; Interpretation.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.1 Definitions.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Credit Agreement; <u>provided</u>, that any term used herein and defined in the UCC shall have the meaning specified therefor in the UCC; and <u>provided</u>, <u>further</u>, that if a term is defined in Article 8 or 9 of the UCC and is otherwise defined in another Article of the UCC, the term shall have the meaning as specified therefor in Article 8 or 9, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) As used in this Security Agreement, the following terms shall have the meanings assigned below:

"**Adverse Claim**" has the meaning provided in Section 8-102(a)(1) of the UCC as in effect on the date hereof.

**"Blocked Account Agreement"** means that certain blocked account agreement among the Pledgor, the Custodian and the Secured Party, as amended, restated, supplemented or otherwise modified from time to time.

"**Collateral**" has the meaning specified in Section 2 (Pledge; Grant of Security Interest) herein.

"**Collateral Accounts**" means the accounts numbered 994556 and 994583, in each case maintained by the Custodian in the name of the Pledgor, including all sub-accounts thereof and all accounts in substitution therefor.

"**Custodian**" means The Bank of New York Mellon.

"**Financial Assets**" has the meaning provided in Section 8-102(a)(9) of the UCC as in effect on the date hereof.

"**Instrument**" has the meaning provided in Section 9-102(a)(47) of the UCC as in effect on the date hereof.

"**Investment Property**" has the meaning provided in Section 9-102(a)(49) of the UCC as in effect on the date hereof.

"**Proceeds**" has the meaning provided in Section 9-102(a)(64) of the UCC as in effect on the date hereof.

"**Secured Obligations**" means all obligations, liabilities and indebtedness of every nature of the Pledgor to the Lender and the Secured Party, individually or collectively, whether direct or indirect, joint or several, actual or contingent, due or to become due, now existing or hereafter incurred, in each case, arising under or in connection with any Transaction Document.

"**Security Entitlement**" has the meaning provided in Section 8-102(a)(17) of the UCC as in effect on the date hereof.

"**UCC**" shall mean the Uniform Commercial Code as in effect from time to time in the State of New York.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.2 Interpretation.** The definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Whenever the context may require, any pronoun shall include the corresponding masculine, feminine and neuter forms. The words "include", "includes" and "including" shall be deemed to be followed by the phrase "without limitation". The word "will" shall be construed to have the same meaning and effect as the word "shall". Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document herein shall be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein), (ii) any reference to any Person shall be construed to include such Person's successors and assigns, (iii) the words "herein", "hereof" and "hereunder", and words of similar import, shall be construed to refer to this Security Agreement in its entirety and not to any particular provision hereof, (iv) all references herein to Articles and Sections shall be construed to refer to Articles and Sections of this Security Agreement and (v) the words "asset" and "property" shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Pledge; Grant of Security Interest.** The Pledgor, as security for the payment and performance in full of all the Secured Obligations, hereby pledges, assigns, charges, delivers, grants and transfers to the Secured Party, a security interest in and a continuing lien on all of the Pledgor's right, title and interest in, to and under all of the following property, in each case whether now owned or existing or hereafter acquired or arising, and wherever located (all of which being hereinafter collectively called the "<u>Collateral</u>"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) the Collateral Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) all Investment Property or other Financial Assets and all other cash, assets or property of the Pledgor, in each case held in or credited to the Collateral Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) each investment of the Pledgor in a loan or other extension of credit, all assets related to such loans and extensions of credit, and all General Intangibles related to such loans and extensions of credit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) all Securities, Financial Assets, Security Entitlements, Instruments or funds or cash with respect to any of the foregoing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) all books and records, credit files, computer files, programs, printouts and other computer materials relating to any of the property in this Section 2 (Pledge; Grant of Security Interest);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) all Proceeds of any of the property in this Section 2 (Pledge; Grant of Security Interest) and all present and future claims, demands, causes and choses in action in respect of any or all of the foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all of the foregoing including all proceeds of the conversion, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, notes, drafts, checks, deposit accounts, insurance proceeds, rights to payment of any and every kind and other forms of obligations, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing and any substitutions or replacements therefor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) all rights accompanying the property in this Section 2 (Pledge; Grant of Security Interest) (including voting rights).

For the avoidance of doubt, the Collateral shall not include any cash or cash equivalents released from the Collateral Accounts in accordance with the terms of the Credit Agreement and delivered to a trading counterparty as collateral for a Permitted Derivatives Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Authorization to File Financing Statements.** The Pledgor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any jurisdiction any and all financing statements or registrations identifying the Pledgor as "debtor" thereon and describing any or all of the Collateral and any amendments thereto, in each case as the Secured Party in its reasonable discretion deems necessary or appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Representations and Warranties of the Pledgor.** The Pledgor hereby represents and warrants to the Secured Party as of the date hereof, as of any date on which additional Collateral is acquired by the Pledgor, and as of each Disbursement Date, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.1 Validity, Perfection and Priority.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Pledgor has the right and all requisite authority to pledge, assign, charge, deliver, grant and transfer the Collateral to the Secured Party herein, and the security interest in the Collateral granted to the Secured Party hereunder constitutes a valid and perfected Lien on, and security interest in, and right of setoff against all right, title and interest of the Pledgor in the Collateral as security for the obligations of the Pledgor under the Transaction Documents, that is (except with respect to Permitted Liens) prior and superior in right to any other Person, enforceable as such against creditors of and purchasers from the Pledgor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) With respect to the Collateral Accounts, upon the crediting of cash or Investment Property or other Financial Assets to the Collateral Accounts and upon the execution of the Control Agreement and Blocked Account Agreement, (i) the Secured Party will have a valid and perfected first-priority security interest in the Collateral Accounts and in the cash and the Security Entitlements in respect of the Investment Property or other Financial Assets credited to the Collateral Accounts, and the Secured Party will have "control" of the Collateral Accounts and the cash and Security Entitlements credited to the Collateral Accounts within the meaning set forth in Articles 8 and 9 of the UCC, (ii) the Liens granted pursuant to this Security Agreement will be prior to all other Liens on such Collateral, other than with respect to Permitted Liens and (iii) no action based on an Adverse Claim to the Collateral consisting of Financial Assets, whether framed in conversion, replevin, constructive trust, equitable lien or other theory, may be asserted against the Pledgor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) With respect to the Collateral as to which a security interest may only be perfected by filing, upon the execution and delivery of this Security Agreement, when a Uniform Commercial Code financing statement identifying the Pledgor as debtor and the Lender as Secured Party has been filed with the Secretary of the Commonwealth of Massachusetts, the Liens granted pursuant to this Security Agreement will constitute first priority Liens, other than Permitted Liens, under the UCC in favor of the Secured Party; and with respect to the Collateral as to which a security interest may be perfected by possession or control, when such Collateral or instruments or other documents representing or evidencing such Collateral are delivered to the Secured Party, the Liens granted pursuant to this Security Agreement will constitute first priority perfected Liens, other than Permitted Liens.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.2 No Liens or Other Financing Statements.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Except for the Lien granted to the Secured Party hereunder and Permitted Liens, the Pledgor is the sole holder of record and beneficial owner of all Collateral whether now existing or hereafter acquired, will continue to own each item of the Collateral, free and clear of any and all Liens, rights or claims of all other persons, and the Pledgor shall defend the Collateral against all claims and demands of all persons at any time claiming the same or any interest therein adverse to the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No financing statement or other evidence of Lien covering or purporting to cover any of the Collateral is on file in any public office other than (i) financing statements filed or to be filed in connection with the security interest granted to the Secured Party hereunder or otherwise permitted by the Credit Agreement and (ii) financing statements for which proper termination statements have been delivered to the Secured Party for filing, if any.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.3 Certificates.** Except for certificates or other instruments delivered to the Secured Party pursuant to Section 5.3 (Further Assurances), none of the Collateral is represented by certificates or similar Instruments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.4 UCC Location.** Except as disclosed to the Secured Party pursuant to Section 5.2 (Change of Name, Identity, Corporate Structure, Chief Executive Office or Registered Office), the Pledgor is, and has always been, located (within the meaning of Section 9-307 of the UCC) in the State of Massachusetts. The Pledgor hereby agrees that the Secured Party may from time to time request the names of the Pledgor's trustees and any and all jurisdictions in which any of them maintains a principal residence, and the Pledgor covenants to provide such information promptly after receiving any such request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.5 Name.** Except as disclosed to the Secured Party pursuant to Section 5.2 (Change of Name, Identity, Corporate Structure, Chief Executive Office or Registered Office), the name set forth in the Preamble to this Security Agreement is the Pledgor's full legal name. The Pledgor's name prior to May 13, 2021 was Voya Prime Rate Trust, and the Pledgor did not have any other name during the past five (5) years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.6** **Consent, Approval, Authorization.** Except for the filing of the financing statements by the Secured Party in respect of the Collateral, and except for such consents, approvals, authorizations or other orders that have been obtained or made and are in full force and effect, no consent, approval, authorization or other order of any Person is required for (i) the execution and delivery of this Security Agreement, the Control Agreement and the Blocked Account Agreement by the Pledgor or the delivery by the Pledgor of the Collateral to the Secured Party as provided herein or therein, or (ii) the exercise by the Secured Party of the rights conveyed to it as security in this Security Agreement, the Control Agreement and the Blocked Account Agreement or the remedies in respect of the Collateral pursuant to this Security Agreement, the Control Agreement and the Blocked Account Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Covenants.** The Pledgor covenants and agrees with the Secured Party that, from and after the date of this Security Agreement until the Secured Obligations have been paid in full and the Commitment has been terminated:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.1 Protection of Collateral.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Pledgor will from time to time execute and deliver, or cause to be executed or delivered, such additional instruments, certificates or documents (including supplements and amendments hereto), and take all such actions as the Secured Party may reasonably request to: (i) create the Lien and security interest under this Security Agreement in all or any portion of any Collateral acquired by the Pledgor; (ii) maintain or preserve the Lien and security interest (and the priority thereof as provided for herein) under this Security Agreement or to carry out more effectively the purposes hereof; (iii) perfect, publish notice of or protect the validity of the grant made by this Security Agreement; (iv) preserve and defend title to the Collateral against the claims of all persons and parties other than in respect of Permitted Liens; (v) preserve the Collateral from loss (other than fluctuations in the market value of the Collateral); or (vi) carry out the purposes of and preserve the benefits and rights afforded to the Secured Party under this Security Agreement, the Control Agreement and the Blocked Account Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Without the prior written consent of the Secured Party, the Pledgor will not file or authorize or permit to be filed or to be on file in any jurisdiction any financing statement or like instrument or registration identifying any Person other than the Secured Party as having a Lien or similar interest in the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Pledgor shall not (i) directly or indirectly create, incur, assume or suffer to exist any Lien or option in favor of, or any claim of any Person with respect to, any of the Collateral, or any interest therein, except for the Lien provided for by this Security Agreement and Permitted Liens or (ii) enter into any agreement or undertaking restricting the right or ability of the Pledgor or the Secured Party to sell, assign or transfer any of the Collateral, in either case without the prior written consent of the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.2 Change of Name, Identity, Corporate Structure, Chief Executive Office or Registered Office.** The Pledgor will not change (i) its name or its jurisdiction of formation or (ii) the location of its chief executive office or registered office or central administration, unless (x) the Pledgor shall have given the Secured Party not less than thirty (30) days' prior notice thereof and (y) promptly in connection therewith, all filings have been made under the UCC, changes to the titling and descriptions of the Collateral Accounts in the Transaction Documents and on the Custodian's books and records or otherwise that are required in order for the Secured Party to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.3 Further Assurances.** The Pledgor will from time to time, at its own expense, promptly execute, deliver, file and record all further instruments, assignments, agreements, certificates, passbooks, endorsements and other documents, and take such further action as the Secured Party may reasonably request in obtaining the full benefits of this Security Agreement, the Control Agreement and the Blocked Account Agreement and of the rights, remedies and powers herein or therein granted (including in connection with any sale of the Collateral or any part thereof by the Secured Party following the occurrence and during the continuance of an Event of Default under the Credit Agreement), including, without limitation, to do all things necessary at the request of the Secured Party during the continuance of an Event of Default to have each Eligible Loan and the related loan documents that are Collateral assigned to the Secured Party or its designee in accordance with and to the extent limited by, the related loan documents, as well as furnishing to the Secured Party from time to time statements and schedules further identifying and describing the Collateral and such other loan documents, reports or other information in connection with the Collateral as the Secured Party may reasonably request, all in reasonable detail and in form reasonably satisfactory to the Secured Party. Further, (x) to the extent that any part of the Collateral not held in or credited to a Collateral Account is at any time evidenced by a note, certificate of deposit, certificated security, instrument or other document of a character where a security interest therein may be perfected by possession, the Pledgor agrees that it will promptly turn such note, certificate, instrument or other document over to the Secured Party and (y) to the extent that any of the Collateral not held in or credited to a Collateral Account consists of negotiable instruments, securities or like properties which require endorsement of the Pledgor thereon or the specific assignment by the Pledgor thereof, the Pledgor agrees to promptly endorse and assign the same to the Secured Party duly endorsed in blank for transfer or accompanied by an appropriate assignment or assignments or an appropriate undated share transfer instrument or stock power or powers, in every case sufficient to transfer title thereto. With respect to each investment in a loan or other extension of credit that is part of the Collateral hereunder, the Pledgor agrees as promptly as practicable to deliver or cause to be delivered to the Custodian an original copy (or if an original copy is not received by the Pledgor, an electronic copy) of each agreement or document evidencing the acquisition and ownership of such loan or other extension of credit. In addition, as promptly as practicable upon request of the Secured Party and subject to any confidentiality restriction contained in any loan document, the Pledgor agrees to provide to the Secured Party electronic copies of each loan agreement, collateral security agreement, guarantee and each other agreement evidencing, securing or governing such loan or other extension of credit that comprises Collateral hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.4 Payment of Obligations.** The Pledgor will pay and discharge promptly when due all taxes, assessments and governmental charges or levies imposed upon the Collateral, as well as all claims of any kind against or with respect to the Collateral; in each case, the failure to do so would not result in a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Limitations on Disposition of Collateral.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.1 Withdrawals from the Collateral Accounts.** The Pledgor shall ensure that all proceeds of any redemption, sale, lease, transfer, or other disposal or liquidation of all or part of its interests in the Collateral shall be paid or credited directly into a Collateral Account. Other than the settlement of sales or purchase of Collateral assets in the ordinary course of business, Collateral may not be withdrawn or released from the Collateral Accounts unless the Secured Party has consented thereto in writing (such consent not to be unreasonably withheld or delayed if no Default or Event of Default has occurred and is continuing or would occur as a result of such withdrawal or release).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.2 Sole Secured Party Control.** Following the delivery of a Notice of Exclusive Control and Instruction to Deliver Loan Documents (as defined in the Control Agreement and the Blocked Account Agreement), (a) the Pledgor will not withdraw assets from the Collateral Accounts or effect any other changes to the assets constituting the Collateral or provide to the Custodian or any other party (including any loan obligor or administrative agent) any instructions, orders or requests regarding a Collateral Account or any assets constituting Collateral and/or the disposition of assets held in or credited to a Collateral Account except as instructed in writing by the Secured Party, and the Pledgor shall not authorize, allow or instruct any person (other than the Secured Party) to withdraw assets from a Collateral Account or effect any other changes to the assets constituting the Collateral or provide to the Custodian any instructions, orders or requests regarding a Collateral Account and/or the disposition of assets held in or credited to a Collateral Account; (b) the Secured Party will have sole authority to deal with the Collateral and to give instructions to the Custodian and any other party (including any loan obligor or administrative agent) in relation thereto, to the exclusion of the Pledgor and any other person; (c) the Pledgor agrees that the Secured Party can direct it to effect changes to the Collateral or enforce the Collateral or withdraw or otherwise dispose of assets from a Collateral Account or any assets constituting Collateral (in accordance with their terms); and (d) the Pledgor agrees that the Secured Party may make any other changes to the assets constituting the Collateral as the Secured Party directs, and the Pledgor agrees to follow such direction subject to compliance with applicable law (including the UCC) and the terms of the underlying assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Covenants of the Secured Party.** The Secured Party covenants and agrees with the Pledgor that, from and after the date of this Security Agreement, the Secured Party shall not deliver or cause to be delivered to the Custodian a Notice of Exclusive Control and Instruction to Deliver Collateral Held as Bailee (as defined in the Control Agreement and Blocked Account Agreement) unless and until an Event of Default shall be continuing at such time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Remedies; Rights Upon Default or Event of Default.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.1 Exercise of Rights and Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) During the continuance of an Event of Default under the Credit Agreement, (i) the Secured Party shall have all the rights of a secured party under the UCC with respect to the Pledgor and the Collateral, shall have all rights now or hereafter existing under all other applicable laws, and shall have all the rights set forth in the Transaction Documents and in any other agreement between the parties, and (ii) the Secured Party is hereby authorized and empowered, at its election (A) to transfer and register in its or its nominee's name the whole or any part of the Collateral, (B) to exercise all voting rights with respect thereto, (C) to redeem the Collateral in accordance with the terms of the constituent documents of the relevant issuers thereof, (D) to demand, sue for, collect, receive and give acquittance for any and all distributions or monies due or to become due upon the Collateral by virtue thereof, and to settle, prosecute or defend any action or proceeding with respect to the Collateral, (E) to sell in one or more sales the whole or any part of the Collateral or otherwise to transfer or assign the same, applying the proceeds therefrom as set forth herein, and (F) otherwise to act with respect to the Collateral or the proceeds thereof as though the Secured Party were the outright owner thereof. Without limitation of the rights conferred on the Secured Party pursuant to Section 11 (Power of Attorney), the Pledgor hereby irrevocably appoints the Secured Party as its attorney-in-fact, with full power of substitution, to exercise all such rights during the continuance of an Event of Default.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Secured Party shall give the Pledgor not less than 10 Business Days' prior written notice of the time and place of any sale or other intended disposition of any Collateral, except that such notice shall not be required for any Collateral that may decline speedily in value or is of a type customarily sold on a recognized market (in which case, the Pledgor acknowledges that, although the Secured Party will make reasonable efforts to notify the Pledgor of any sale or disposition to the extent practicable, no such notice is required, except any notice that is required under applicable law and cannot be waived). The Pledgor agrees that such notice, if required, constitutes "reasonable notification" within the meaning of Section 9-611(b) of the UCC. In any event, the Secured Party agrees to promptly notify the Pledgor after any disposition of Collateral made by the Secured Party; provided that failure to give such notice shall not affect the validity of such disposition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.2 Restricted or Private Sales.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Pledgor recognizes that, by reason of certain prohibitions contained in the U.S. Securities Act of 1933, as amended, and applicable U.S. state securities laws, or other laws, or because of certain provisions in the organizational documents of funds comprising the Collateral, the Secured Party, in the exercise of its rights and remedies during the continuance of an Event of Default, with respect to any sale of all or any part of the Collateral, may limit purchasers to those who meet certain investor qualifications and/or who will agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to the distribution or resale thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Pledgor acknowledges that any such restricted or private sales may be at prices and on terms less favorable to the Pledgor than those obtainable through a public sale without such restrictions, but agrees that such sales or redemptions are commercially reasonable, if conducted in a commercially reasonable manner under the then existing circumstances and in accordance with applicable law. The Pledgor further acknowledges that any specific disclaimer of any warranty of title or the like by the Secured Party will not be considered to adversely affect the commercial reasonableness of any sale of Collateral.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.3 Waiver of Objections.** The Pledgor agrees that it will not at any time plead, claim or take the benefit of any appraisal, valuation, stay, extension, moratorium or redemption law now or hereafter in force in order to prevent or delay the enforcement of this Security Agreement, the Control Agreement and the Blocked Account Agreement, or the absolute sale of the whole or any part of the Collateral or the possession thereof by any purchaser at any sale hereunder, in each case, in accordance with the terms hereof, and the Pledgor waives the benefit of all such laws to the extent it lawfully may do so. The Pledgor agrees that it will not interfere with any right, power and remedy of the Secured Party provided for in this Security Agreement, the Control Agreement or the Blocked Account Agreement or now or hereafter existing at law or in equity or by statute or otherwise, or the exercise or beginning of the exercise by the Secured Party of any one or more such rights, powers or remedies, in accordance with the terms hereof. No failure or delay on the part of the Secured Party to exercise any such right, power or remedy, and no notice or demand which may be given to or made upon the Pledgor by the Secured Party with respect to any such remedies, shall operate as a waiver thereof, or limit or impair the Secured Party's right to take any action or to exercise any power or remedy hereunder without notice or demand, or prejudice its rights as against the Pledgor in any respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9. Application of Proceeds.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.1** After sale, disposition, collection or other realization of all or any part of the Collateral or other enforcement or foreclosure of the Secured Party's security interest hereunder, the Secured Party shall apply the proceeds of the Collateral to the payment of any and all taxes, expenses and fees (including reasonable legal fees and expenses) incurred by the Secured Party in obtaining, taking possession and disposing of the Collateral, any and all amounts incurred by the Secured Party in connection therewith and any amounts payable to the Secured Party under this Security Agreement and any and all fees, costs, expenses or indemnities payable to the Custodian under the Control Agreement and Blocked Account Agreement, and the balance of such proceeds after such shall be applied towards the payment of the Secured Obligations, and any surplus remaining thereafter shall be paid by the Secured Party to the Pledgor; provided that such payment shall be made by the Secured Party subject to the rights of the holder of any then existing Lien of which the Secured Party has actual knowledge (without investigation).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.2** The Pledgor hereby acknowledges that it shall remain liable to the extent of any deficiency between the amount of the proceeds actually realized on the Collateral by the Secured Party and any amounts payable by the Pledgor under the Credit Agreement or any of the other Transaction Documents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10. Exoneration of the Secured Party.** Other than the exercise of reasonable care in the custody and preservation of the Collateral, the Secured Party shall have no duty with respect thereto (other than any duties the Secured Party shall have under applicable law). The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party accords its own property, and shall not be liable or responsible for any loss or damage to any of the Collateral, or for any diminution in the value thereof, by reason of the act or omission of any agent or bailee selected by the Secured Party in good faith and with due care.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11. Power of Attorney.** The Pledgor hereby irrevocably constitutes and appoints the Secured Party and any officer or agent thereof, with full power of substitution, as its true and lawful attorney-in-fact with full irrevocable power and authority in the place and stead of the Pledgor and in the name of the Pledgor or in its own name, from time to time in the Secured Party's reasonable discretion, for the purpose of carrying out the terms of this Security Agreement, the Control Agreement and the Blocked Account Agreement, to take any and all appropriate action by any technologically available means, which may include any form of electronic data transmission, and to execute in any appropriate manner, which may include using any symbol that the Secured Party may adopt to signify the Pledgor's intent to authenticate, any and all documents and instruments which may be necessary or reasonably desirable to accomplish the purposes of this Security Agreement, the Control Agreement and the Blocked Account Agreement and the exercise of the Secured Party's rights and remedies thereunder. The Pledgor hereby ratifies that which said attorneys shall lawfully do or cause to be done by virtue hereof. This power of attorney is coupled with an interest and shall be irrevocable. The Secured Party covenants and agrees that it will not take any such action unless an Event of Default is continuing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12. Expenses.** The Pledgor agrees to reimburse the Secured Party for all its reasonable and documented costs, expenses (including all reasonable and invoiced attorneys' fees, charges and disbursements of external legal counsel) incurred in connection with the exercise of its rights hereunder against the Pledgor or in respect of the Collateral including all expenses of retaking, holding, redeeming, preparing for sale, selling or enforcing any Collateral in each case following the Pledgor's failure to perform any of the Secured Obligations when due (which fees and expenses, for the avoidance of doubt, shall constitute Secured Obligations).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13. Miscellaneous.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.1 Notices.** All notices and other communications provided for herein shall be effected in the manner provided in Section 9.2 (Notices) of the Credit Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.2 Successors and Assigns.** The provisions of this Security Agreement shall be binding upon and inure to the benefit of the Pledgor, the Secured Party, all future holders of the Secured Obligations and their respective successors and permitted assigns, except that the Pledgor may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the Secured Party (and any attempted assignment or transfer by the Pledgor without such consent shall be null and void).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.3 Amendments and Waivers.** This Security Agreement and the terms hereof may not be amended, supplemented, modified or waived except pursuant to an agreement or agreements in writing entered into by the Pledgor and the Secured Party. In the case of any waiver, the Pledgor and the Secured Party shall be restored to their former position and rights hereunder, but no such waiver shall extend to any subsequent instance requiring waiver or impair any right consequent in respect of such instance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.4 No Waiver; Cumulative Remedies.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) No failure to exercise and no delay in exercising any right, remedy, power or privilege hereunder shall operate as a waiver thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No single or partial exercise of any right, remedy, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law or any other Transaction Document or any other agreement contemplated hereby or thereby.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.6 Severability.** Any provision of this Security Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate, or render unenforceable, such provision in any other jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.7 Governing Law; Jurisdiction; Consent to Service of Process.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) **GOVERNING LAW.** THIS SECURITY AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS SECURITY AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) **SUBMISSION TO JURISDICTION; WAIVERS.** EACH OF THE PLEDGOR AND THE SECURED PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY: (I) SUBMITS FOR ITSELF AND ITS PROPERTY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO OR ARISING OUT OF THIS SECURITY AGREEMENT, OR THE CONDUCT OF ANY PARTY WITH RESPECT THERETO, OR FOR RECOGNITION AND ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF, TO THE NON-EXCLUSIVE GENERAL JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK, THE COURTS OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF NEW YORK, AND APPELLATE COURTS FROM ANY THEREOF; (II) CONSENTS THAT ANY SUCH ACTION OR PROCEEDING MAY BE BROUGHT IN SUCH COURTS AND WAIVES TO THE FULLEST EXTENT PERMITTED BY LAW ANY OBJECTION THAT IT MAY NOW OR HEREAFTER HAVE TO THE VENUE OF ANY SUCH ACTION OR PROCEEDING IN ANY SUCH COURT OR THAT SUCH ACTION OR PROCEEDING WAS BROUGHT IN AN INCONVENIENT COURT AND AGREES NOT TO PLEAD OR CLAIM THE SAME; (III) AGREES THAT NOTHING HEREIN SHALL AFFECT THE RIGHT TO EFFECT SERVICE OF PROCESS IN ANY MANNER PERMITTED BY LAW OR SHALL LIMIT THE RIGHT TO SUE IN ANY OTHER JURISDICTION; (IV) AGREES THAT, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, A FINAL JUDGMENT IN ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW; AND (V) WAIVES, TO THE MAXIMUM EXTENT NOT PROHIBITED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO CLAIM OR RECOVER IN ANY LEGAL ACTION OR PROCEEDING REFERRED TO IN THIS SECTION 13.7(B) ANY SPECIAL, EXEMPLARY, PUNITIVE OR CONSEQUENTIAL DAMAGES.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.8 WAIVER OF JURY TRIAL.** THE PLEDGOR AND THE SECURED PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS SECURITY AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.9 Counterparts.** This Security Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Security Agreement by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Security Agreement signed by all the parties shall be lodged with the Pledgor and the Secured Party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.10 Limitation on Liability**. The Pledgor's declaration of trust is on file with the Secretary of the Commonwealth of Massachusetts. This Security Agreement and the other Transaction Documents to which the Pledgor is a party are executed on behalf of the Pledgor by the Pledgor's officers as officers and not individually and the obligations imposed upon the Pledgor by this Security Agreement or by any other Transaction Document to which the Pledgor is a party are not binding upon any of the Pledgor's trustees, officers, directors, shareholders, beneficiaries or other equity holders individually but are binding only upon the assets and property of the Pledgor.

IN WITNESS WHEREOF this Security Agreement has been executed and delivered effective as of the day and year first above written.

---

| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES | SABA CAPITAL INCOME & OPPORTUNITIES |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FUND, as Pledgor | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FUND, as Pledgor |
| By: | ![](ex99k2001.jpg) |
|  | Name: Michael D'Angelo, Secretary |
|  | Title: |

---

[Signature Page to Saba Capital Income & Opportunities Fund Security Agreement]

---

| | |
|:---|:---|
| THE TORONTO-DOMINION BANK, NEW YORK | THE TORONTO-DOMINION BANK, NEW YORK |
| &nbsp;&nbsp;&nbsp;BRANCH, as the Secured Party | &nbsp;&nbsp;&nbsp;BRANCH, as the Secured Party |
| By: | ![](ex99k2002.jpg) |
|  | Name: Michael Borowiecki |
|  | Title: Authorized Signatory |

---

[Signature Page to Saba Capital Income & Opportunities Fund Security Agreement]

## Ex-99.(K)(2)(I)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (k)(2)(i)**

Execution Version

**AMENDMENT NO. 10 TO CREDIT AGREEMENT**

**AMENDMENT NO. 10 TO CREDIT AGREEMENT**, dated as of January 17, 2025 (this "<u>Amendment</u>"), amending certain provisions of the Credit Agreement, dated as of July 20, 2021 and as amended on December 13, 2021, January 26, 2021, July 21, 2022, May 31, 2023, July 19, 2023, September 22, 2023, November 21, 2023, December 21, 2023 and January 17, 2024 (as further amended, supplemented or otherwise modified from time to time, the "<u>Agreement</u>"), by and among **SABA CAPITAL INCOME & OPPORTUNITIES FUND**, as borrower (the "<u>Borrower</u>"), and **THE TORONTO-DOMINION BANK, NEW YORK BRANCH**, as lender (in such capacity, together with its successors in such capacity, the "<u>Lender</u>").

WITNESSETH:

**WHEREAS**, the Borrower desires to extend the Final Maturity Date pursuant to Section 9.1 (*Amendments and Waivers*) of the Agreement (the "<u>Extension</u>");

**WHEREAS**, the Borrower notified that Lender that (i) on or about January 26, 2022, it acquired a wholly-owned subsidiary, BRW SPV I and (ii) on or about July 19, 2024, it acquired a wholly-owned subsidiary, BRW SPV II, in each case, in order to invest in certain digital assets and other investment products (collectively, the "<u>Subsidiary Formations</u>"), which Subsidiary Formations constitute a breach of Section 7.5 (*No Subsidiaries*) of the Agreement;

**WHEREAS**, the Borrower requested that the Lender provide a waiver of any breach, failure, Default or Event of Default under the Agreement and any other Transaction Documents, as applicable, in connection with the Subsidiary Formations;

**WHEREAS**, the Lender is willing to consent to the Subsidiary Formations, the Extension and such other amendments to the Agreement on the terms and subject to the conditions set forth in this Amendment; and

**WHEREAS**, the Borrower and the Lender have agreed to amend certain provisions of the Credit Agreement pursuant to Section 9.1 (*Amendments and Waivers*) of the Credit Agreement in order to, among other things, reflect the Extension and the Subsidiary Formations.

**NOW, THEREFORE**, in consideration of the premises and of the mutual covenants and agreements contained herein, the parties hereto hereby agree as follows:

SECTION 1. <u>Definitions</u>. Capitalized terms which are used herein without definition and which are defined in the Agreement shall have the same meanings herein as in the Agreement.

SECTION 2. <u>Amendments</u>. Effective as of the Effective Date and subject to the satisfaction of the conditions precedent set forth in <u>Section 4</u> below, the Lender and the Borrower agree as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Agreement is hereby amended as set forth on <u>Exhibit A</u> to this Amendment. Language being inserted into the applicable section or Exhibit of the Agreement is evidenced by bold and underline formatting (indicated textually in the same manner as the following example: <u>double-underlined text</u><u>)</u>. Language being deleted from the applicable section or Exhibit of the Agreement is evidenced by strike-through formatting (indicated textually in the same manner as the following example: stricken text).

SECTION 3. <u>Limited Waiver.</u> The Lender hereby waives each Event of Default, Default and breach of the Agreement and the other Transaction Documents resulting directly from the Subsidiary Formations (collectively, the "<u>Waiver</u>"); <u>provided</u> that, (a) such Waiver does not waive or otherwise change in any way any current or future exercise or non-exercise of the rights, remedies, powers and privileges available to the Lender under the Transaction Documents or applicable law in respect of any breach, failure, Default or Event of Default under the Agreement or any other Transaction Documents and (b) the Lender reserves its rights fully to invoke any and all such rights, remedies, powers and privileges under the Transaction Documents and any applicable law at any time that it deems appropriate in respect of any breach, failure, Default or Event of Default that may or does exist, that may or does come into existence hereafter or that may continue after the expiration of the effective period of any waiver provided herein.

SECTION 4. <u>Conditions to Effectiveness of this Amendment</u>. The effectiveness of this Amendment is conditioned upon satisfaction of the following requirements:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Executed Documents</u>. The Lender shall have received on or before the date hereof, from each party hereto either (i) a counterpart of this Amendment signed on behalf of such party or (ii) written evidence satisfactory to the Lender (which may include facsimile or other electronic transmission of a signed signature page of this Amendment) that such party has signed a counterpart of this Amendment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Officer's Certificate</u>. The Lender shall have received signed certificate from the Secretary or Assistant Secretary of the Borrower in form and substance satisfactory to the Lender and dated the Effective Date (i) attaching copies of the constituent documents or other governing documents of BRW SPV I and BRW SPV II together with all amendments thereto, certified to be correct and complete copies thereof and in effect on the date hereof, (ii) attaching a certificate of legal existence and good standing certificate for each of the Borrower, BRW SPV I and BRW SPV II from the secretary of state or similar authority in its jurisdiction of formation, dated as of a recent date, certified to be correct and complete copies thereof and in effect on the date hereof, and satisfactory to the Lender in its reasonable discretion, (iii) certifying that there have been no material changes to the constituent documents or other governing documents attached to the Secretary's Certificate previously delivered to the Lender on July 20, 2021 (or, where there have been material changes, attaching certified copies of such documents as modified and in effect as of the date hereof) and (iv) certifying (1) each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party are true and correct in all material respect on and as of the Effective Date or, as to any such representations or warranties that, by their terms, refer to an earlier date, as of such specific date; provided that, any representation and warranty that is qualified as to "materiality", "Material Adverse Effect" or similar language shall be true and correct in all respects, (2) no Default or Event of Default (except any Default or Event of Default explicitly waived by the Waiver) has occurred and is continuing on the Effective Date or immediately after giving effect to the Amendment and (3) the Borrower is Solvent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Fees; Costs and Expenses.</u> Payment of all fees and other amounts due and payable by the Borrower on or prior to the date hereof, including, to the extent invoiced, reimbursement or payment of all expenses required to be reimbursed or paid by the Borrower hereunder, including, to the extent invoiced at least one (1) Business Day in advance, the fees and disbursements invoiced through the date hereof of the Lender's special counsel, Cadwalader, Wickersham & Taft LLP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Additional Information</u>. The Lender shall have received all information it may reasonably deem necessary or appropriate to comply with applicable know-your-customer requirements, Anti-Money Laundering Laws and Anti-Corruption Laws.

SECTION 5. <u>Agreement Otherwise Unchanged</u>. Except as herein provided, the Agreement shall remain unchanged and in full force and effect, and each reference to the Agreement (and words of similar import) in the Transaction Documents shall be a reference to the Agreement as amended hereby, and as the same may be further amended, supplemented and otherwise modified and in effect from time to time.

SECTION 6. <u>Counterparts</u>. This Amendment may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all of which when taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page of this Amendment by telecopy or electronic transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

SECTION 7. <u>Representations and Warranties</u>. The Borrower represents and warrants that on the Effective Date, immediately after the Effective Date and after giving effect to the Extension, the representations and warranties of the Borrower contained in the Transaction Documents to which it is a party are true and correct, *provided* that to the extent such representations and warranties specifically refer to an earlier date, they shall be true and correct in all material respects as of such earlier date.

SECTION 8. <u>Execution, Delivery and Performance</u>. The Borrower represents and warrants that the Extension and the execution, delivery and performance of this Amendment by the Borrower has been duly authorized and approved by all necessary statutory trust action on the part of the trust of which the Borrower is a series, not in its individual capacity, but on behalf of the Borrower.

SECTION 9. <u>No Default</u>. The Borrower represents and warrants that on the Effective Date, immediately after the Effective Date and after giving effect to the Extension, no event (other than any event explicitly waived by the Waiver) has occurred and is continuing that would constitute a Default or Event of Default by the Borrower.

SECTION 10. <u>Effective Date</u>. This Amendment shall become effective as of the date of execution hereof (the "<u>Effective Date</u>"), subject to the satisfaction of the conditions set forth in Section 4 of this Amendment.

SECTION 11. <u>Governing Law; Jurisdiction and Waivers</u>. The provisions contained in the Agreement, insofar as they relate to governing law, the submission to the courts specified therein and waivers shall apply to this Amendment mutatis mutandis as if they were incorporated herein.

SECTION 12. <u>Reaffirmation of Obligations</u>. The Borrower (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms all of its obligations under the Transaction Documents to which it is a party, and (c) agrees that except as expressly set forth herein, the execution and effectiveness of this Amendment shall not operate as a waiver of any right, power or remedy of the Lender, constitute a waiver of any provision of any of the Transaction Documents or serve to effect a novation of the obligations.

SECTION 13. <u>Reaffirmation of Security Interests</u>. The Borrower (a) affirms the validity and enforceability of each of the Liens and security interests heretofore granted in or pursuant to the Transaction Documents as collateral security for the obligations under the Transaction Documents in accordance with their respective terms, and (b) acknowledges that all of such Liens and security interests, and all Collateral heretofore pledged as security for such obligations, continues to be and remain Collateral for such obligations from and after the date hereof.

[*Signatures follow on separate pages*]

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed and delivered by their proper and duly authorized officers or directors, as the case may be, as of the day and year first written above.

---

| | | |
|:---|:---|:---|
| <u>BORROWER</u> | <u>BORROWER</u> | <u>BORROWER</u> |
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: Saba Capital Management L.P., its investment adviser | By: Saba Capital Management L.P., its investment adviser | By: Saba Capital Management L.P., its investment adviser |
| By: | ![](ex99k2i001.jpg) | ![](ex99k2i001.jpg) |
|  | Name: | Michael D'Angelo |
|  | Title: | General Counsel |

---

*Signature Page to Amendment No. 10 to Credit Agreement*

---

| | | |
|:---|:---|:---|
| <u>LENDER</u> | <u>LENDER</u> | <u>LENDER</u> |
| THE TORONTO-DOMINION BANK, NEW YORK BRANCH | THE TORONTO-DOMINION BANK, NEW YORK BRANCH | THE TORONTO-DOMINION BANK, NEW YORK BRANCH |
| By: | ![](ex99k2i002.jpg) | ![](ex99k2i002.jpg) |
|  | Name: | Chandra Balack |
|  | Title: | Authorized Signatory |

---

*Signature Page to Amendment No. 10 to Credit Agreement*

**Exhibit A**

[Attached]

Pro Forma

Incorporating Amendment Nos. 1, 2, 3, 4, 5, 6, 7, 8<u>, 9</u> and 9<u>10</u>

USD 125,000,000

**CREDIT AGREEMENT**

Dated as of July 20, 2021

**SABA CAPITAL INCOME & OPPORTUNITIES FUND**

as Borrower

and

**THE TORONTO-DOMINION BANK, NEW YORK BRANCH**

as Lender

---

| | | |
|:---|:---|:---|
|  | **TABLE OF CONTENTS** |  |
|  |  | <u>Page</u> |
|  | ARTICLE I |  |
|  | DEFINITIONS |  |
| Section 1.1 | Defined Terms | 1 |
| Section 1.2 | Other Definitional Provisions | 21 |
|  | ARTICLE II |  |
|  | TERMS OF COMMITMENT AND LOANS |  |
| Section 2.1 | Loans | 21 |
| Section 2.2 | Borrowings of Loans | 22 |
| Section 2.3 | Repayment of Loans; Evidence of Indebtedness | 22 |
| Section 2.4 | Optional Prepayment | 23 |
| Section 2.5 | [Reserved] | 23 |
| Section 2.6 | Interest Rate; Unused Commitment Fee | 23 |
| Section 2.7 | Maximum Interest Rate | 24 |
| Section 2.8 | Inability to Determine Interest Rate | 24 |
| Section 2.9 | Payments | 25 |
| Section 2.10 | Change in Legality; Continuation | 25 |
| Section 2.11 | [Reserved] | 25 |
| Section 2.12 | Increased Costs | 25 |
| Section 2.13 | Taxes | 27 |
| Section 2.14 | Increase of Commitment Amount | 31 |
| Section 2.15 | Early Termination Option and Commitment Reduction | 32 |
| Section 2.16 | Effect of Benchmark Transition Event | 32 |
|  | ARTICLE III |  |
|  | REPRESENTATIONS AND WARRANTIES OF THE BORROWER |  |
| Section 3.1 | Financial Condition | 34 |
| Section 3.2 | No Material Adverse Effect | 34 |
| Section 3.3 | Existence and Power; Investment Company | 34 |
| Section 3.4 | Organizational Power; Authorization; Enforceable Obligations | 35 |
| Section 3.5 | No Legal Bar | 35 |
| Section 3.6 | No Material Litigation | 35 |
| Section 3.7 | Compliance | 36 |
| Section 3.8 | Ownership of Property; Liens; Compliance | 36 |
| Section 3.9 | Taxes | 36 |

---

-i-

---

| | | |
|:---|:---|:---|
| Section 3.10 | Regulations T, U and X | 36 |
| Section 3.11 | ERISA | 36 |
| Section 3.12 | Ownership of Assets | 36 |
| Section 3.13 | Security Interest | 37 |
| Section 3.14 | Non-Affiliation with Lender | 37 |
| Section 3.15 | Subsidiaries | 37 |
| Section 3.16 | Disclosure | 37 |
| Section 3.17 | Ranking | 37 |
| Section 3.18 | No Immunity | 37 |
| Section 3.19 | Indebtedness | 37 |
| Section 3.20 | Name | 38 |
| Section 3.21 | Anti-Money Laundering and Anti-Corruption | 38 |
| Section 3.22 | Sanctions | 38 |
| Section 3.23 | Investment Adviser | 38 |
| Section 3.24 | Solvency | 38 |
|  | ARTICLE IV |  |
|  | CONDITIONS PRECEDENT TO COMMITMENT |  |
| Section 4.1 | Transaction Documents | 38 |
| Section 4.2 | Financing Statements; Lien Searches | 38 |
| Section 4.3 | Representations and Warranties | 39 |
| Section 4.4 | No Default or Event of Default | 39 |
| Section 4.5 | Officer's Certificate | 39 |
| Section 4.6 | Constituent Documents | 39 |
| Section 4.7 | Certificate of Good Standing | 39 |
| Section 4.8 | Certificate of Responsible Officer | 39 |
| Section 4.9 | Legal Opinions | 39 |
|  | ARTICLE V |  |
|  | CONDITIONS PRECEDENT TO LOANS |  |
| Section 5.1 | Representations and Warranties | 40 |
| Section 5.2 | No Default or Event of Default | 40 |
| Section 5.3 | Compliance | 40 |
| Section 5.4 | No Material Adverse Effect | 40 |
| Section 5.5 | Loan Notice | 40 |
|  | ARTICLE VI |  |
|  | AFFIRMATIVE COVENANTS |  |
| Section 6.1 | Financial Statements and Reports | 41 |
| Section 6.2 | [Reserved] | 42 |

---

-ii-

---

| | | |
|:---|:---|:---|
| Section 6.3 | Maintenance of Insurance | 42.0 |
| Section 6.4 | Financial Covenants | 42.0 |
| Section 6.5 | Conduct of Business and Maintenance of Existence; Compliance with Laws | 43.0 |
| Section 6.6 | Security Documents | 43.0 |
| Section 6.7 | Inspection of Assets; Books and Records; Discussions | 43.0 |
| Section 6.8 | Custody and Control | 43.0 |
| Section 6.9 | Taxes and Other Claims | 44.0 |
| Section 6.10 | Further Acts | 44.0 |
| Section 6.11 | Notices | 44.0 |
| Section 6.12 | Compliance with Investment Policies and Restrictions | 45.0 |
| Section 6.13 | Use of Proceeds | 45.0 |
| Section 6.14 | Internet Passwords | 46.0 |
| Section 6.15 | Status of Borrower | 46.0 |
| Section 6.16 | Compliance with Anti-Money Laundering Laws and Anti-Corruption Laws | 46.0 |
| Section 6.17 | Compliance with Sanctions | 46.0 |
|  | ARTICLE VII |  |
|  | NEGATIVE COVENANTS |  |
| Section 7.1 | Indebtedness | 46.0 |
| Section 7.2 | Investment Policies; Fiscal Year | 47.0 |
| Section 7.3 | Accounting Changes | 47.0 |
| Section 7.4 | Non-Affiliation with Lender | 47.0 |
| Section 7.5 | No Subsidiary | 47.0 |
| Section 7.6 | Burdensome Agreements | 47.0 |
| Section 7.7 | Merger, Consolidation, or Sale of Assets | 47.0 |
| Section 7.8 | Security Interest | 47.0 |
| Section 7.9 | Custodian Changes | 47.0 |
| Section 7.10 | ERISA | 48.0 |
| Section 7.11 | Change of Name, Corporate Structure or Chief Executive or Registered Office | 48.0 |
| Section 7.12 | Custody Agreement | 48.0 |
| Section 7.13 | Regulations T, U and X | 48.0 |
| Section 7.14 | Accounts | 48.0 |

---

-iii-

---

| | | |
|:---|:---|:---|
|  | ARTICLE VIII |  |
|  | EVENTS OF DEFAULT |  |
|  | ARTICLE IX |  |
|  | MISCELLANEOUS |  |
| Section 9.1 | Amendments and Waivers | 51.0 |
| Section 9.2 | Notices | 51.0 |
| Section 9.3 | No Waiver; Cumulative Remedies | 53.0 |
| Section 9.4 | Survival of Representations and Warranties | 53.0 |
| Section 9.5 | Payment of Expenses; Indemnity | 53.0 |
| Section 9.6 | Successors and Assigns | 54.0 |
| Section 9.7 | Set-Off; Authorization to Debit from Accounts | 55.0 |
| Section 9.8 | Counterparts | 55.0 |
| Section 9.9 | Severability | 56.0 |
| Section 9.10 | Integration | 56.0 |
| Section 9.11 | Governing Law | 56.0 |
| Section 9.12 | Submission to Jurisdiction; Waivers | 56.0 |
| Section 9.13 | Judgment Currency | 57.0 |
| Section 9.14 | Acknowledgements | 57.0 |
| Section 9.15 | Waivers of Jury Trial | 57.0 |
| Section 9.16 | Confidentiality | 57.0 |
| Section 9.17 | Conflicts Disclosure | 58.0 |
| Section 9.18 | Anti-Money Laundering | 58.0 |
| Section 9.19 | Limitation on Liability | 58.0 |
| Section 9.20 | Acknowledgement Regarding Any Supported QFC | 59.0 |
| **<u>EXHIBITS</u>** |  |  |
| Exhibit A | Form of Loan Notice |  |
| Exhibit B | Form of Promissory Note |  |
| Exhibit C | Form of U.S. Tax Compliance Certificate |  |
| Exhibit D | Form of Control Agreement |  |
| Exhibit E | Form of Blocked Account Agreement |  |
| Exhibit F | Form of Security Agreement |  |
| Exhibit G | Investment Guidelines & Portfolio Requirements |  |
| Exhibit H | Borrower's Eligible Loans Report |  |
| Exhibit I | Borrower's Compliance Certificate |  |
| Exhibit J | Facility Increase Certificate |  |

---

-iv-

This Credit Agreement is made as of July 20, 2021 by and between:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) **Saba Capital Income & Opportunities Fund** a Massachusetts business trust, registered under the Investment Company Act as a, closed-end, management investment company, as the Borrower; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) **The Toronto-Dominion Bank, New York Branch**, as the Lender.

**Background**

WHEREAS, the Borrower has requested that the Lender provide a revolving credit facility, and the Lender is willing to do so on the terms and conditions set forth herein;

NOW, THEREFORE, in consideration of the mutual covenants herein contained, and other good and valuable consideration, the receipt and adequacy of which are hereby expressly acknowledged, the parties hereto agree as follows:

**ARTICLE I**

**DEFINITIONS**

Section 1.1 <u>Defined Terms</u>. As used in this Agreement, the following terms shall have the following meanings:

"**Adjusted Eligible Asset Value**" means the Value for each Eligible Asset as reduced, if necessary, for compliance with the Investment Guidelines.

"**Advance Rate**" has the meaning set forth in the Investment Guidelines.

"**Affiliate**" means, as to any Person, any other Person which, directly or indirectly, is in control of, is controlled by, or is under common control with, such Person; <u>provided</u>, <u>however</u>, that in the case of the Borrower, Affiliate has the meaning ascribed to the term "Affiliated Person" in the Investment Company Act.

"**Aggregate Advance Amount**" means an amount equal to the sum of all Asset Advance Amounts.

"**Aggregate Borrowing Percentage**" means an amount, expressed as a percentage, equal to the quotient of (i) the Principal Outstanding Amount divided by (ii) the aggregate Value of the Borrower's assets comprising the Collateral.

"**Agreement**" means this Credit Agreement, as amended, restated, supplemented or otherwise modified from time to time.

"**Anti-Corruption Laws**" means (a) the U.S. Foreign Corrupt Practices Act of 1977, as amended; (b) the U.K. Bribery Act 2010, as amended; and (c) any other anti-bribery or anti-corruption laws, regulations or ordinances in any jurisdiction in which the Borrower or any of its subsidiaries is located or doing business.

"**Anti-Money Laundering Laws**" means any Applicable Law in any jurisdiction in which the Borrower or any of its subsidiaries<u>Subsidiaries</u> are located or doing business that relates to money laundering or terrorism financing, any predicate crime to money laundering, or any financial record keeping and reporting requirements related thereto.

"**Applicable Law**" means all applicable provisions of constitutions, laws, statutes, ordinances, rules, treaties, regulations, permits, licenses, approvals, interpretations and orders of courts or Governmental Authorities and all orders and decrees of all courts and arbitrators.

"**Applicable Margin**" means 0.85%.

"**Asset Advance Amount**" means, for each Eligible Asset, the product of (x) the Advance Rate for such type of Eligible Asset and (b) the Adjusted Eligible Asset Value for such Eligible Asset.

"**Australian Dollars**" and "**AUD**" refer to the lawful currency of the Commonwealth of Australia.

"**Availability Period**" means a period commencing on the Closing Date and ending on the earlier of (a) the Commitment Termination Date and (b) the date on which the Commitment shall have been terminated in accordance with this Agreement.

"**Available Commitment**" means, at any time, an amount equal to the excess, if any, of (a) the Commitment Amount over (b) the Principal Outstanding Amount.

**"Available Tenor"** means, as of any date of determination and with respect to the then-current Benchmark, as applicable, any tenor for such Benchmark or payment period for interest calculated with reference to such Benchmark, as applicable, that is or may be used for determining the length of an Interest Period pursuant to this Agreement as of such date and not including, for the avoidance of doubt, any tenor for such Benchmark that is then-removed from the definition of "Interest Period" pursuant to Section 2.16(d).

"**Base Rate**" means, for any day, a rate *per annum* equal to the greater of (a) the Prime Rate in effect on such day and (b) the Federal Funds Rate in effect on such day plus ½ of 1%.

**"Benchmark"** means, initially, Daily Simple SOFR; <u>provided</u> that if a Benchmark Transition Event has occurred with respect to the Daily Simple SOFR or the then-current Benchmark, then "Benchmark" means the applicable Benchmark Replacement to the extent such Benchmark Replacement has replaced such prior benchmark rate pursuant to Section 2.16. Any reference to "Benchmark" shall include, as applicable, the published component used in the calculation thereof.

"**Benchmark Loan**" means a Loan made by the Lender pursuant to a Loan Notice requesting a Benchmark Loan as set forth in Section 2.2(b).

"**Benchmark Replacement**" means with respect to any Benchmark Transition Event, the sum of: (a) the alternate benchmark rate that has been selected by the Calculation Agent and the Borrower giving due consideration to (i) any selection or recommendation of a replacement benchmark rate or the mechanism for determining such a rate by the Relevant Governmental Body or (ii) any evolving or then-prevailing market convention for determining a benchmark rate as a replacement for the then-current Benchmark for Dollar-denominated syndicated credit facilities and (b) the related Benchmark Replacement Adjustment; <u>provided</u> that, if such Benchmark Replacement as so determined would be less than the Floor, such Benchmark Replacement will be deemed to be the Floor for the purposes of this Agreement and the other Transaction Documents.

"**Benchmark Replacement Adjustment**" means, with respect to any replacement of the then-current Benchmark with an Unadjusted Benchmark Replacement, the spread adjustment, or method for calculating or determining such spread adjustment, (which may be a positive or negative value or zero) that has been selected by the Calculation Agent and the Borrower giving due consideration to (a) any selection or recommendation of a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement by the Relevant Governmental Body or (b) any evolving or then-prevailing market convention for determining a spread adjustment, or method for calculating or determining such spread adjustment, for the replacement of such Benchmark with the applicable Unadjusted Benchmark Replacement for Dollar-denominated syndicated credit facilities.

"**Benchmark Replacement Date**" means the earliest to occur of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) in the case of clause (1) or (2) of the definition of "Benchmark Transition Event",
the later of (a) the date of the public statement or publication of information referenced therein and (b) the date on which the
administrator of such Benchmark (or the published component used in the calculation thereof) permanently or indefinitely ceases
to provide all Available Tenors of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) in the case of clause (3) of the definition of "Benchmark Transition Event", the first
date on which such Benchmark (or the published component used in the calculation thereof) has been determined and announced by
or on behalf of the administrator of such Benchmark (or such component thereof) or the regulatory supervisor for the administrator
of such Benchmark (or such component thereof) to be non-representative or non-compliant with or non-aligned with the International
Organization of Securities Commissions (IOSCO) Principles for Financial Benchmarks; <u>provided</u> that such non-representativeness,
non-compliance or non-alignment will be determined by reference to the most recent statement or publication referenced in such
clause (3) and even if any Available Tenor of such Benchmark (or such component thereof) continues to be provided on such date.

For the avoidance of doubt, the "Benchmark Replacement Date" will be deemed to have occurred in the case of clause (1) or (2) with respect to any Benchmark upon the occurrence of the applicable event or events set forth therein with respect to all then-current Available Tenors of such Benchmark (or the published component used in the calculation thereof).

"**Benchmark Transition Event**" means the occurrence of one or more of the following events with respect to the then-current Benchmark:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component
used in the calculation thereof) announcing that such administrator has ceased or will cease to provide all Available Tenors of
such Benchmark (or such component thereof), permanently or indefinitely; <u>provided</u> that, at the time of such statement or
publication, there is no successor administrator that will continue to provide any Available Tenor of such Benchmark (or such component
thereof);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a public statement or publication of information by the regulatory supervisor for the administrator
of such Benchmark (or the published component used in the calculation thereof), the Board of Governors, the Federal Reserve Bank
of New York, an insolvency official with jurisdiction over the administrator for such Benchmark (or such component), a resolution
authority with jurisdiction over the administrator for such Benchmark (or such component) or a court or an entity with similar
insolvency or resolution authority over the administrator for such Benchmark (or such component), which states that the administrator
of such Benchmark (or such component) has ceased or will cease to provide all Available Tenors of such Benchmark (or such component
thereof) permanently or indefinitely; <u>provided</u> that, at the time of such statement or publication, there is no successor
administrator that will continue to provide any Available Tenor of such Benchmark (or such component thereof); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a public statement or publication of information by or on behalf of the administrator of such Benchmark (or the published component
used in the calculation thereof) or the regulatory supervisor for the administrator of such Benchmark (or such component thereof)
announcing that all Available Tenors of such Benchmark (or such component thereof) are not, or as of a specified future date will
not be, representative or in compliance with or aligned with the International Organization of Securities Commissions (IOSCO) Principles
for Financial Benchmarks.

For the avoidance of doubt, a "Benchmark Transition Event" will be deemed to have occurred with respect to any Benchmark if a public statement or publication of information set forth above has occurred with respect to each then-current Available Tenor of such Benchmark (or the published component used in the calculation thereof).

"**Benchmark Transition Start Date**" means, in the case of a Benchmark Transition Event, the earlier of (a) the applicable Benchmark Replacement Date and (b) if such Benchmark Transition Event is a public statement or publication of information of a prospective event, the 90th day prior to the expected date of such event as of such public statement or publication of information (or if the expected date of such prospective event is fewer than 90 days after such statement or publication, the date of such statement or publication).

"**Benchmark Unavailability Period**" means, the period (if any) (x) beginning at the time that a Benchmark Replacement Date has occurred if, at such time, no Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with Section 2.16 and (y) ending at the time that a Benchmark Replacement has replaced the then-current Benchmark for all purposes hereunder and under any Transaction Document in accordance with Section 2.16.

**"Blocked Account Agreement"** means that certain blocked account agreement, dated as of the Closing Date, among the Borrower, the Custodian and the Lender, as amended, restated, supplemented or otherwise modified from time to time.

"**Board of Governors**" means the Board of Governors of the Federal Reserve System of the United States of America.

"**Borrower**" means Saba Capital Income & Opportunities Fund.

"**Borrowing Base Ratio**" means an amount equal to the quotient of (i) the Aggregate Advance Amount divided by (ii) the sum of (x) the Principal Outstanding Amount plus (y) the principal amount of any outstanding advances made by the Custodian to the Borrower.

"**Business Day**" means a day other than Saturday, Sunday or other day on which commercial banks in New York City are authorized or required by law to be closed.

"**Calculation Agent**" means The Toronto-Dominion Bank or any Affiliate thereof, or any other designee reasonably acceptable to the Borrower (such consent not to be unreasonably withheld or delayed). All determinations made by the Calculation Agent shall be made in a reasonable manner.

"**Canadian Dollars**" and "**CAD**" mean the lawful currency of Canada.

"**Cash**" has the meaning assigned to such term in the definition of "Eligible Assets".

"**Cash Equivalents**" means, (a) readily marketable obligations issued or directly and fully guaranteed or insured by the United States of America or any agency or instrumentality thereof having maturities of not more than 360 days from the date of acquisition thereof; provided that the full faith and credit of the United States of America is pledged in support thereof and (b) shares of any open-end management investment company registered under the Investment Company Act that is regulated as a money market fund under Rule 2a-7 thereunder and which money market fund is rated "AAA-mf" by Moody's or "AAAm" by S&P.

"**Closing Date**" means July 20, 2021.

"**Closed-End Fund**" means any closed-end management investment company registered under the Investment Company Act, which for the avoidance of doubt shall be deemed to include any security specified in the Bloomberg field "Security_TYP" as a Closed-End Fund.

"**Code**" means the Internal Revenue Code of 1986, as amended.

"**Collateral**" has the meaning set forth in the Security Agreement.

"**Collateral Accounts**" means each account maintained for the Borrower by the Custodian that is subject to the Control Agreement or the Blocked Account Agreement (as applicable).

"**Commitment**" means the obligation of the Lender to fund the principal amount of the Loans hereunder in an aggregate principal amount not to exceed the Commitment Amount.

"**Commitment Amount**" means USD 125,000,000, as it may be increased by written agreement of the parties hereto in accordance with Section 2.14.

"**Commitment Termination Date**" means the earlier to occur of (a) the Maturity Date and (b) the Final Maturity Date, as the same may be modified in accordance with the terms hereof; <u>provided</u> that, if the Commitment Termination Date would otherwise fall on a day which is not a Business Day, it will instead be the immediately preceding Business Day.

"**Confidential Information**" means the Transaction Documents and all information received from a party (the disclosing party) relating to that party or its business, other than any such information that is available to the receiving party on a nonconfidential basis prior to disclosure by the disclosing party.

**"Conforming Changes"** with respect to either the use or administration of Daily Simple SOFR or the use, administration, adoption or implementation of any Benchmark Replacement, any technical, administrative or operational changes (including changes to the definition of "Benchmark Loan", the definition of "Base Rate", the definition of "Business Day," the definition of "U.S. Government Securities Business Day", the definition of "Interest Period" or any similar or analogous definition, the timing and frequency of determining rates and making payments of interest, timing of borrowing requests or prepayment, conversion or continuation notices, length of lookback periods, the applicability of breakage provisions, and other technical, administrative or operational matters) that the Calculation Agent after consultation with the Borrower decides in its reasonable discretion may be appropriate to reflect the adoption and implementation of such Benchmark Replacement and to permit the administration thereof by the Calculation Agent in a manner substantially consistent with market practice (or, if the Calculation Agent decides that adoption of any portion of such market practice is not administratively feasible or if the Calculation Agent after consultation with the Borrower determines that no market practice for the administration of such Benchmark Replacement exists, in such other manner of administration as the Calculation Agent after consultation with the Borrower decides is reasonably necessary in connection with the administration of this Agreement and the other Transaction Documents).

"**Connection Income Taxes**" means Other Connection Taxes that are imposed on or measured by net income (however denominated) or that are franchise Taxes or branch profits Taxes.

"**Contingent Obligations**" means, as to any Person, any obligation of such Person guaranteeing or in effect guaranteeing any Indebtedness, leases, dividends or other obligation (a "**primary obligation**") of any other Person in any manner, whether directly or indirectly, including, without limitation, any obligation of such Person, whether or not contingent, (i) to purchase any such primary obligation or any property constituting direct or indirect security therefor, (ii) to advance or supply funds to the primary obligor or any other person at the request or on behalf of the primary obligor (a) for the purchase or payment of any such primary obligation, or (b) to maintain working capital or equity capital of the primary obligor or otherwise to maintain the net worth or solvency of the primary obligor, (iii) to purchase property, securities and services primarily for the purposes of assuring the owner of any such primary obligation of the ability of the primary obligor to make payment of such primary obligation or (iv) otherwise to assure or hold harmless the owner of any such primary obligation against loss in respect thereof; <u>provided</u> that the term "**Contingent Obligation**" shall not include endorsements of checks for collection in deposit in the ordinary course of business. The amount of any Contingent Obligation shall be deemed to be an amount equal to the stated or determinable amount of the primary obligation in respect of which such Contingent Obligation is incurred or, if not stated or determinable, the maximum reasonably anticipated liability in respect thereof as determined by the contingent obligor in good faith.

"**Contractual Obligation**" means, as to any Person, any obligation set forth in any security issued by such Person or in any agreement, instrument or other undertaking to which such Person is a party or by which it or any of its property is bound.

"**Control Affiliate**" of a Person means (a) any other Person directly or indirectly owning, controlling, or holding with power to vote, greater than 50% of the outstanding voting securities of such Person, (b) any other Person greater than 50% of whose outstanding voting securities are directly or indirectly owned, controlled, or held with power to vote, by such Person, or (c) any Person directly or indirectly controlling, controlled by, or under common control with, such other Person. For purposes of this defined term, "control" means the power to exercise a controlling influence over the management or policies of a company, and "controlling" and "controlled" shall have correlative meanings.

"**Control Agreement**" means that certain control agreement, dated as of the Closing Date, among the Borrower, the Custodian and the Secured Party, as amended, restated, supplemented or otherwise modified from time to time.

"**Covered Party**" has the meaning assigned to such term in Section 9.20.

"**Converted Benchmark Loan**" has the meaning given to it in Section 2.2(b).

<u>"**Cryptocurrencies**" means each cryptocurrency or similar digital asset that utilizes blockchain technology permitted under the Borrower's investment policies and restrictions and approved by the Lender in its sole discretion.</u>

<u>"**Cryptocurrency Investments**" means any exchange traded fund or unit investment trust registered as an "investment company" under the Investment Company Act or other investment trust, in each case, substantially comprised of ownerships interests in Cryptocurrencies and with shares listed on a Nationally Recognized Exchange.</u>

"**Custodian**" means, The Bank of New York Mellon unless replaced by a successor custodian in accordance with Section 7.9.

"**Custody Agreement**" means that certain Custodian Services Agreement, dated as of June 4, 2021, between the Borrower and the Custodian, as amended, restated, supplemented or otherwise modified from time to time, as permitted by the terms of the Transaction Documents.

"**Daily Simple SOFR**" means, for any day, (a "**SOFR Rate Day**"), a rate per annum equal to the greater of (a) SOFR for the day (such day "**SOFR Determination Day**") that is five (5) U.S. Government Securities Business Days prior to (x) if such SOFR Rate Day is a U.S. Government Securities Business Day, such SOFR Rate Day or (y) if such SOFR Rate Day is not a U.S. Government Securities Business Day, the U.S. Government Securities Business Day immediately preceding such SOFR Rate Day, in each case, as such SOFR is published by the SOFR Administrator on the SOFR Administrator's Website and (b) the Floor. If by 5:00 p.m. (New York City time) on the second (2nd) U.S. Government Securities Business Day immediately following any SOFR Determination Day, SOFR in respect of such SOFR Determination Day has not been published on the SOFR Administrator's Website and a Benchmark Replacement Date with respect to the Daily Simple SOFR has not occurred, then SOFR for such SOFR Determination Day will be SOFR as published in respect of the first preceding U.S. Government Securities Business Day for which such SOFR was published on the SOFR Administrator's Website; provided that any SOFR determined pursuant to this sentence shall be utilized for purposes of calculation of Daily Simple SOFR for no more than three (3) consecutive SOFR Rate Days. Any change in Daily Simple SOFR due to a change in SOFR shall be effective from and including the effective date of such change in SOFR without notice to the Borrower.

"**Default**" means any event which, with the giving of notice, the lapse of time, or both, would, unless cured or waived, become an Event of Default.

"**Disbursement Date**" means each Business Day during the Availability Period on which a Loan is made pursuant to Section 2.2.

"**Distressed**" means, with respect to any Eligible Loan, (a) the relevant obligor is subject to bankruptcy or insolvency petition or proceeding, (b) the relevant obligor is in default beyond the applicable grace period as to payment or is otherwise classified as non-performing by the Borrower; provided that if principal or interest is past due for a period of equal to or greater than (30) consecutive days, such loan will be deemed Distressed even if the applicable grace period under the related loan documents has not expired, or (c) the Investment Adviser or Borrower deem such loan to be Distressed.

"**Dollars**" and "**USD**" refer to the lawful currency of the United States of America.

"**Early Termination Date**" has the meaning given to it in Section 2.15.

"**Eligibility Criteria**" has the meaning given to it in the definition of "Eligible Assets".

"**Eligible Assets**" means, as determined by the Lender in its reasonable discretion, (i) cash denominated in any Permitted Currency ("**Cash**") and Cash Equivalents, (ii) SPACs traded on a Nationally Recognized Exchange in the United States or Canada, (iii) Eligible Equity Securities, Eligible Corporate Bonds and Eligible Loans, or (iv) such other asset agreed to by the Lender; <u>provided</u> that, (1) in the case of clauses (ii)-(iv) above, other than with respect to Eligible Equity Securities or SPACs, bid-side quotes for such asset are available from an Eligible Source, (2) such asset is registered in the name of the Custodian (if applicable) and held in or credited to a Collateral Account or is otherwise subject to a valid and perfected first priority (other than Permitted Liens) security interest in favor of the Secured Party, (3) all proceeds (including principal, interest, dividends, distributions or other amounts) of such asset are paid or credited to a Collateral Account and (4) if any consents are required to pledge or otherwise transfer the Borrower's interests in such asset, such consents have been obtained; <u>provided further</u> that, in the case of clauses (i)-(iv) above, if such asset is denominated in a currency other than USD, such currency will be converted into USD at the prevailing spot rate for purposes of applying the Investment Guidelines) (collectively, the "**Eligibility Criteria**"). Notwithstanding the foregoing, Lender shall have the right to disqualify any asset as an Eligible Asset in its reasonable discretion after consultation with the Borrower, <u>provided</u> that, such determination shall be made by the Lender in a manner consistent across similarly situated borrowers.

"**Eligible Corporate Bonds**" means, as determined by the Lender in its reasonable discretion, any corporate bond that (i) is denominated in any Permitted Currency, (ii) is not Distressed, (iii) is part of an initial issuance greater than USD 250,000,000 (or its equivalent in a Permitted Currency), (iv) has a Value equal to or greater than 65% of the par or face amount thereof, (v) for which the Borrower's investment comprises no more than 10% of the total amount of such bonds issued and (v) otherwise meets the Eligibility Criteria.

"**Eligible DIP Loan**" means loans with a rating of "B-" or better from Standard & Poor's Ratings Group or "B3" or better from Moody's Investors Service, Inc. that would be Eligible Assets, but for the obligors of such Eligible Assets being the subject of a bankruptcy proceeding as described in clause (a) of the definition of "Distressed" and (a) the obligor of which has filed a petition for bankruptcy pursuant to Chapter 11 of the United States Bankruptcy Code and is the subject of a bankruptcy proceeding under Chapter 11 of the United States Bankruptcy Code, and (b) pursuant to such proceeding, (i) such obligor has retained possession of its assets, and is authorized under the bankruptcy code to continue the operation of its business as debtor-in-possession, and (ii) the applicable United States bankruptcy court has entered an order authorizing the obligor to secure post-petition financing, comprised in whole or in part by such Eligible Asset, and evidenced by the related loan documents, which order remains in full force and effect and has not been vacated, modified, amended, reversed, overturned or stayed in any material respect.

"**Eligible Equity Securities**" means, as determined by the Lender in its reasonable discretion, any equity securities (including any shares of Closed-End Funds) permitted under the Borrower's investment policies and restrictions that (i) are freely saleable, (ii) are traded on a Nationally Recognized Exchange, (iii) other than with respect to shares of Closed-End Funds, have a minimum share price of $2.00 and (iv) otherwise meets the Eligibility Criteria; <u>provided</u> that, with respect to any shares of Closed-End Funds that are listed on a Nationally Recognized Exchange located outside of the United States, such Closed-End Funds shall be required to have a market capitalization equal to or greater than USD $500,000,000.

"**Eligible Loans**" means any first lien senior secured syndicated loan or second lien secured syndicated loan that (i) is governed by the laws of a State of the United States, (ii) is not Distressed, except for Eligible DIP Loans, (iii) is part of an initial issuance or loan with an aggregate amount not less than $250,000,000, (iv) has a Value equal to or greater than 65% of the par or face amount thereof, (v) for which the Borrower's investment comprises no more than 10% of the total amount of such securities issued and (vi) otherwise meets the Eligibility Criteria.

"**Eligible Source**" means, with respect to any security (a) a bid quotation received from Bloomberg, Markit, LPC, ICE Data Services or another independent pricing service, (b) a bid quotation received from an independent dealer making a market in such security, (c) the last closing price thereof established on a public trading market, or (d) solely to the extent none of the procedures set forth in any of clauses (a), (b) or (c) immediately above is readily available on the relevant date of determination, a fair valuation determination by the Borrower in good faith in the manner such value is required to be computed in accordance with the Borrower's valuation policy for its investments and applicable law, including the Investment Company Act.

"**Employee Plan**" means an employee pension benefit plan as defined in Section 3(2) of ERISA that is subject to Title IV of ERISA or Section 412 of the Code (other than a Multiemployer Plan) and that is (a) maintained by the Borrower or any ERISA Affiliate or (b) to which the Borrower or any ERISA Affiliate is required to make any payment or contribution.

"**ERISA**" means the US Employee Retirement Income Security Act of 1974, as amended (or any successor legislation thereto) and the regulations promulgated and rulings issued thereunder.

"**ERISA Affiliate**" means each person (as defined in Section 3(9) of ERISA) that is a member of a controlled group of, or under common control with, the Borrower, within the meaning of Section 414(b), (c), (m) or (o) of the Code.

"**Euros**" and "**€**" refer to the single currency of the Participating Member States.

"**Event of Default**" has the meaning given to it in Article VIII.

"**Exchange Act**" means the U.S. Securities Exchange Act of 1934, as amended from time to time.

"**Excluded Taxes**" means any of the following Taxes imposed on or with respect to a Lender or required to be withheld or deducted from a payment to a Lender: (a) Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, (i) imposed as a result of such Lender being organized under the laws of, or having its principal office or its applicable lending office located in, the jurisdiction imposing such Tax (or any political subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Lender with respect to an applicable interest in a Loan or the Commitment pursuant to a law in effect on the date on which (i) such Lender acquires such interest in such Loan or the Commitment or (ii) such Lender changes its lending office, except in each case to the extent that, pursuant to Section 2.13, amounts with respect to such Taxes were payable either to such Lender's assignor immediately before such Lender became a party hereto or to such Lender immediately before it changed its lending office, (c) Taxes attributable to such Lender's failure to comply with Section 2.13(f) and (d) any U.S. federal withholding Taxes imposed under FATCA.

"**Facility Increase**" has the meaning given to it Section 2.14(a).

"**Facility Increase Request**" means a written request by the Borrower substantially in the form attached hereto as Exhibit J to increase the Commitment Amount in accordance with Section 2.14.

"**FATCA**" means Sections 1471 through 1474 of the Code, as of the Closing Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future regulations or official interpretations thereof and any agreements entered into pursuant to Section 1471(b)(1) of the Code and any fiscal or regulatory legislation, rules or practices adopted pursuant to any intergovernmental agreement treaty or convention among Governmental Authorities and implementing such Sections of the Code.

"**Federal Funds Rate**" means, for any period, the greater of (a) a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by Calculation Agent from three federal funds brokers of recognized standing selected by it and (b) 0%.

"**Final Maturity Date**" means January 20, 2025<u>2026</u>; provided that, if the Final Maturity Date would otherwise fall on a day which is not a Business Day, it will instead be the immediately preceding Business Day.

"**Financial Covenants**" means the covenants enumerated in Section 6.4 hereto.

"**Floor**" means a rate of interest equal to 0%.

"**Foreign Lender**" means a Lender that is not a U.S. Person.

"**G10 Country**" means the countries listed by the Bank for International Settlements as the "Group of Ten" (as the same may be amended from time to time), which, as of the Closing Date includes, France, Germany, Belgium, Italy, Japan, the Netherlands, Sweden, Switzerland, the United Kingdom, the United States and Canada.

"**GAAP**" means generally accepted accounting principles as in effect from time to time in the United States of America, applied on a basis consistent (except for changes concurred in by the Borrower's independent public accountants) with the most recent audited financial statements of the Borrower delivered to the Lender hereunder.

"**Governmental Authority**" means any nation, government or supranational authority, any provincial or other political subdivision thereof, whether state or local, and any agency, authority, instrumentality, regulatory body, court, or other entity exercising executive, legislative, judicial, regulatory or administrative powers or functions of or pertaining to government, including, but not limited to, any central bank or any taxation authority.

"**Indebtedness**" of the Borrower<u>any Person</u> means, without duplication and as at the date of determination, (i) all obligations of the Borrower<u>such Person</u> for borrowed money <u>or with respect to deposits or advances of any kind</u>, (ii) all obligations of the Borrower<u>such Person</u> evidenced by bonds, debentures, notes, preferred shares or similar instruments, (iii) all obligations of the Borrower<u>such Person</u> upon which interest charges are customarily paid, (iv) all obligations of the Borrower<u>such Person</u> under conditional sale or other title retention agreements relating to property acquired by the Borrower<u>such Person</u>, (v) all obligations of the Borrower<u>such Person</u> in respect of the deferred purchase price of property or services (excluding current accounts payable incurred in the ordinary course of business), (vi) all Indebtedness of others secured by (or for which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured by) any Lien on property of the Borrower<u>such Person</u>, whether or not the Indebtedness secured thereby has been assumed, (vii) all Contingent Obligations of the Borrower<u>such Person</u> in respect of Indebtedness of others, (viii) all obligations, contingent or otherwise, of the Borrower<u>such Person</u> in respect of bankers' acceptances, letters of guaranty, or letters of credit, (ix) all obligations of the Borrower<u>such Person</u> in respect of judgments, (x) the net obligations of the Borrower<u>such Person</u> under derivative <u>or short sale</u> transactions, commodity transactions, foreign exchange transactions, repurchase agreements, reverse repurchase agreements or securities lending agreements and (xi) all obligations that are senior securities for purposes of the Investment Company Act.

"**Indemnified Liabilities**" has the meaning given to it in Section 9.5(c).

"**Indemnified Taxes**" means (a) Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by or on account of any obligation of the Borrower under any Transaction Document and (b) to the extent not otherwise described in (a), Other Taxes.

"**Indemnitees**" has the meaning given to it in Section 9.5(b).

"**Interest Payment Date**" means, the first Business Day of each calendar month.

"**Interest Period**" means the period from and including each Interest Period End Date to but excluding the immediately following Interest Period End Date; <u>provided</u> that the final Interest Period shall end on and exclude the Final Maturity Date.

"**Interest Period End Date**" means the last Business Day of each calendar month.

"**Investment Adviser**" means Saba Capital Management, L.P., which is the investment manager of the Borrower, or any successor investment manager permitted under this Agreement.

"**Investment Company Act**" means the U.S. Investment Company Act of 1940, as amended and the rules and regulations of the SEC thereunder, as modified or interpreted by orders of the SEC, or other interpretative releases or letters issued by the SEC or its staff, all as from time to time in effect, or any successor law, rules or regulations, and any reference to any statutory or regulatory provision shall be deemed to be a reference to any successor statutory or regulatory provision.

"**Investment Guidelines**" means the investment guidelines set forth in Exhibit G hereto.

"**IRS**" means the U.S. Internal Revenue Service.

**"ISDA Definitions"** means the 2006 ISDA Definitions published by the International Swaps and Derivatives Association, Inc. or any successor thereto, as amended or supplemented from time to time, or any successor definitional booklet for interest rate derivatives published from time to time by the International Swaps and Derivatives Association, Inc. or such successor thereto.

"**Japanese Yen**" refers to the lawful currency of Japan.

"**Judgment Currency**" has the meaning given to it in Section 9.13.

"**Lender**" means The Toronto-Dominion Bank, New York Branch and any assignee that shall become the Lender party hereto pursuant to Section 9.6.

"**Lien**" means any (i) lien, mortgage, pledge, assignment, deed of trust, hypothecation, encumbrance, claim, deposit arrangement, adverse claim, priority, preference, charge, or security interest or any other type of preferential arrangement (including with respect to the right to receive income) having the practical effect of creating a security interest upon or with respect to any property or asset, whether arising by agreement or under any statute, law, regulation or otherwise and (ii) the interest of a vendor or a lessor under any conditional sale agreement, capital lease or title retention agreement (or any financing lease having substantially the same economic effect as any of the foregoing) relating to any property or asset.

"**Loan**" or "**Loans**" has the meaning set forth in Section 2.1(a).

"**Loan Conversion Date**" has the meaning set forth in Section 2.2(b).

"**Loan Notice**" has the meaning set forth in Section 2.2(b).

"**Loan Principal Amount**" means, with respect to a Loan, the outstanding principal amount advanced by the Lender to the Borrower on the related Disbursement Date pursuant to Section 2.2 hereof.

"**Material Adverse Effect**" means,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) a material adverse effect on the business, assets, operations, property, financial condition or results of operations of the Borrower, excluding general market conditions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) a material adverse effect on the ability of the Borrower to perform its obligations under the Transaction Documents to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) a material adverse effect on the validity or enforceability against the Borrower of any Transaction Document to which it is a party; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) a material adverse effect on the rights or remedies against the Borrower of the Lender or the Secured Party under any Transaction Document to which it is a party.

"**Maturity Date**" means, initially, the day that is sixty (60) days after the Ninth<u>Tenth</u> Amendment Effective Date; provided that on each day the Maturity Date shall be automatically extended for an additional day unless either the Borrower or the Lender gives written notice on any Business Day that it does not wish for further automatic extensions of the Maturity Date to occur, in which case such extensions shall cease, and the Maturity Date shall be the day that is either (i) sixty (60) days after the day such notice is deemed duly given or made by the Lender pursuant to Section 9.2 or (ii) thirty (30) days after the day such notice is deemed duly given or made by the Borrower pursuant to Section 9.2. In the event that the Maturity Date falls on a day that is not a Business Day, the Maturity Date shall be the immediately preceding Business Day. Notwithstanding the preceding two sentences, the Borrower may not deliver such written notice that would cause the Maturity Date to occur earlier than one-hundred eighty (180) days after the Ninth<u>Tenth</u> Amendment Effective Date.

"**Maximum Aggregate Borrowing Percentage**" means 48%.

"**Maximum Rate**" has the meaning given to it in Section 2.7.

"**Minimum Borrowing Base Ratio**" means 1.0.

**"Moody's"** means Moody's Investors Service, Inc.

"**Multiemployer Plan**" means, at any time, a multiemployer plan (as defined in Section 4001(a)(3) of ERISA) then or at any time during the previous five (5) years maintained for, or contributed to (or to which there is or was an obligation to contribute) on behalf of, employees of the Borrower or any ERISA Affiliate.

"**Nationally Recognized Exchange**" means any of the following: New York Stock Exchange, NASDAQ Stock Exchange, American Stock Exchange (NYSE American), BATS Exchange, Toronto Stock Exchange, Canadian Securities Exchange, Euronext, London Stock Exchange, Deutsche Borse, Irish Stock Exchange, Tokyo Stock Exchange, Australian Securities Exchange, Luxembourg Stock Exchange, Frankfurt Stock Exchange, SIX Swiss Exchange or such other exchange as the Lender may approve in its discretion.

"**Ninth Amendment Effective Date**" means January 17, 2024.

"**Note**" or "**Notes**" means, at any time, the promissory notes issued by the Borrower hereunder (if any) in substantially the form of Exhibit B hereto.

"**OFAC**" has the meaning provided in the definition of "Sanction".

"**Other Connection Taxes**" means, with respect to the Lender, Taxes imposed as a result of a present or former connection between the Lender and the jurisdiction imposing such Tax (other than connections arising from the Lender having executed, delivered, become a party to, performed its obligations under, received payments under, received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Transaction Document, or sold or assigned an interest in any Loan or Transaction Document).

"**Other Taxes**" means all present or future stamp, court or documentary, intangible, recording, filing or similar Taxes that arise from any payment made under, from the execution, delivery, performance, enforcement or registration of, from the receipt or perfection of a security interest under, or otherwise with respect to, any Transaction Document, except any such Taxes that are Other Connection Taxes imposed with respect to an assignment.

"**Participant Register**" has the meaning set forth in Section 9.6(d) hereto.

"**Participating Member State**" means any member state of the European Union that has the euro as its lawful currency in accordance with legislation of the European Union relating to Economic and Monetary Union.

"**Patriot Act**" means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56, signed into law on October 26, 2001, as amended.

"**Permitted Derivative Transactions**" means derivative transactions (as defined pursuant to Rule 18f-4 of the Investment Company Act) that are entered into by the Borrower in compliance with (a) its policies and procedures with respect to such transactions and (b) the Investment Company Act, including upon the earlier of (i) the compliance date for such rule or (ii) implementation of such rule by the Borrower pursuant to its policies and procedures, Rule 18f-4 of the Investment Company Act.

<u>"**Permitted Subsidiary**" means any Subsidiary of the Borrower that (i) makes or holds substantially all of its investments in Cryptocurrencies, Cryptocurrency Investments, Permitted Subsidiary Transactions, private hedge funds or any other investments acceptable to the Lender and (ii) is approved by the Lender in its sole discretion. As of the Tenth Amendment Effective Date, the only Permitted Subsidiaries are (i) BRW SPV I and (ii) BRW SPV II.</u>

<u>"**Permitted Subsidiary Transactions**" means, with respect to each Permitted Subsidiary, short sale transactions in respect of Cryptocurrencies and Cryptocurrency Investments entered into by such Permitted Subsidiary for non-speculative hedging purposes only.</u>

"**Permitted Currency**" means each of USD, Euros, GBP, Japanese Yen, Australian Dollars, Swiss Francs, Canadian Dollars, and any other currency approved by the Lender in its sole discretion.

"**Permitted Indebtedness**" has the meaning set forth in Section 7.1 hereto.

"**Permitted Liens**" means (a) the Liens of the Custodian in respect of the Borrower's interests in assets held by the Custodian to secure obligations arising under the Custody Agreement, to the extent not waived or subordinated pursuant to the Control Agreement or Blocked Account Agreement, (b) Liens created under the Transaction Documents, (c) Liens for taxes, assessments or other governmental charges or levies the payment of which is not at the time required or which are being contested in good faith by the Borrower and as to which the Borrower has established appropriate reserves on its books and records in accordance with GAAP and<u>,</u> (d) Liens on assets other than Collateral created in connection with the Borrower's portfolio investments to the extent not prohibited by the Borrower's investment policies or restrictions or Section 7.1 or in connection with Permitted Derivative Transactions <u>and (e) Liens on assets other than Collateral held directly by a Permitted Subsidiary and created in connection with Permitted Subsidiary Transactions</u>.

"**Person**" means an individual, partnership, limited liability company, corporation, business trust, joint stock company, trust, unincorporated association, joint venture, Governmental Authority or other entity of whatever nature.

"**Portfolio Requirements**" has the meaning given to it in Exhibit G hereto.

"**Preferred Stock**" means any class of capital stock of a Person that is preferred over any other class of capital stock (or similar equity interests) of such Person as to the payment of dividends or the payment of any amount upon liquidation or dissolution of such Person.

"**Prepayment Date**" has the meaning given to it in Section 2.4(a).

"**Prime Rate**" means the rate of interest last quoted by The Wall Street Journal as the "Prime Rate" in the U.S. or, if The Wall Street Journal ceases to quote such rate, the highest per annum interest rate published by the Board of Governors in Federal Reserve Statistical Release H.15 (519) (Selected Interest Rates) as the "bank prime loan" rate or, if such rate is no longer quoted therein, any similar rate quoted therein (as determined by the Calculation Agent) or any similar release by the Board of Governors (as determined by the Calculation Agent). Each change in the Published Prime Rate shall be effective from and including the date such change is publicly announced or quoted as being effective.

"**Principal Outstanding Amount**" means, at any time, the aggregate outstanding principal amount of the Loans at such time.

"**Prospectus**" means with respect to the Borrower, the prospectus dated June 30, 2020 and modified by the Definitive Proxy Statement filed April 21, 2021, and filed with the SEC as a part of the Borrower's registration statement on Form N-2, as amended (or any successor SEC form), and shall include, without limitation, the related statement of additional information included in such registration statement, and all supplements, amendments and modifications thereto and including material modifications of the Borrower's investment objectives, strategies and restrictions contained in shareholder reports and press releases of the Borrower as of the Closing Date, and as further supplemented, amended or modified in accordance with any Requirement of Law, including, without limitation, the Securities Act and the Investment Company Act.

"**Public Filings**" means with respect to the Borrower, the Borrower's most recent annual report in the form filed by the Borrower with the SEC, and (i) any periodic reports, proxy statements or other materials filed by the Borrower with the SEC pursuant to the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and (ii) any registration statement, prospectus or statement of additional information filed by the Borrower with the SEC pursuant to the Securities Act, in each case subsequent to such annual report, and including all supplements, amendments and modifications to any of the foregoing and including material modifications of the Borrower's investment objectives, strategies and restrictions contained in shareholder reports and press releases of the Borrower as of the Closing Date, and as further supplemented, amended or modified in accordance with any Requirement of Law, including, without limitation, the Exchange Act, the Securities Act and the Investment Company Act.

**"QFC Credit Support**" has the meaning assigned to such term in Section 9.20.

"**QFC Transaction Documents**" has the meaning assigned to such term in Section 9.20.

**"Reference Time"** with respect to any setting of the then-current Benchmark means the time determined by the Calculation Agent in its reasonable discretion.

"**Register**" has the meaning set forth in Section 9.6(b) hereto.

"**Regulation D**" means Regulation D of the Board of Governors, as in effect from time to time, and all official rulings and interpretations thereunder and thereof.

"**Regulation T**" means Regulation T of the Board of Governors, as in effect from time to time, and all official rulings and interpretations thereunder and thereof.

"**Regulation U**" means Regulation U of the Board of Governors, as in effect from time to time, and all official rulings and interpretations thereunder and thereof.

"**Regulation X**" means Regulation X of the Board of Governors, as in effect from time to time, and all official rulings and interpretations thereunder and thereof.

**"Relevant Governmental Body"** means the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or a committee officially endorsed or convened by the Board of Governors of the Federal Reserve System or the Federal Reserve Bank of New York, or any successor thereto.

"**Requirement of Law**" means, as to any Person, any law, treaty, rule, regulation, judgment, decree, order or determination of an arbitrator or any Governmental Authority, in each case, applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject.

"**Responsible Officer**" means with respect to the Borrower or the Investment Adviser, as applicable, any of its directors, officers or other Persons duly authorized by the Borrower or Investment Adviser, as applicable, to act on the Borrower's behalf in connection with this Agreement and the Transaction Documents.

"**RIC**" means a Person that qualifies as a "regulated investment company" within the meaning of Section 851 of the Code.

**"S&P"** means Standard & Poor's (a division of McGraw Hill Financial, Inc.).

"**Same Day Loan**" means a Loan made by the Lender pursuant to a Loan Notice requesting a Same Day Loan as set forth in Section 2.2(b).

"**Sanction**" or "**Sanctions**" means individually and collectively, respectively, any and all economic or financial sanctions, sectoral sanctions, secondary sanctions, trade embargoes and anti-terrorism laws, including those imposed, administered or enforced from time to time by: (a) the United States of America, including those administered by the U.S. Department of the Treasury's Office of Foreign Assets Control ("**OFAC**"), the U.S. Department of the Treasury, the U.S. Department of State, the U.S. Department of Commerce, or through any existing or future executive order; (b) the United Nations Security Council; (c) the European Union; (d) the United Kingdom; or (e) any other Governmental Authorities with jurisdiction over the Borrower or its subsidiaries<u>Subsidiaries</u>.

"**Sanctioned Entity**" means any individual, entity, group, sector, territory or country that is the target of any Sanctions, including any legal entity that is deemed to be a target of Sanctions based on the direct or indirect ownership or control of such entity by any other Sanctioned Entity.

"**SEC**" means the Securities and Exchange Commission or any other governmental authority of the United States of America at the time administering the Securities Act, the Exchange Act or the Investment Company Act.

"**Secured Party**" means The Toronto-Dominion Bank, as the secured party under the Security Agreement.

"**Securities Act**" means the U.S. Securities Act of 1933, as amended, and the rules and regulations of the SEC thereunder, as modified or interpreted by orders of the SEC, or other interpretative releases or letters issued by the SEC or its staff, all as from time to time in effect, or any successor law, rules or regulations, and any reference to any statutory or regulatory provisions shall be deemed to be a reference to any successor statutory or regulatory provision.

"**Security Agreement**" means that certain Security Agreement, dated as of the Closing Date, between the Borrower and the Secured Party, entered into in connection with this Agreement, as amended, restated, supplemented or otherwise modified from time to time.

"**Security Documents**" means, collectively, the Security Agreement, the Control Agreement, the Blocked Account Agreement and all security documents hereafter delivered to the Secured Party in furtherance of the grant, perfection or enforcement of a Lien on any property of the Borrower to secure the obligations and liabilities of the Borrower under any Transaction Document, and "Security Document" means any of them as the context may require.

"**SOFR**" means, a rate per annum equal to the secured overnight financing rate as administered by the SOFR Administrator.

"**SOFR Administrator**" means the Federal Reserve Bank of New York (or a successor administrator of the secured overnight financing rate).

"**SOFR Administrator's Website**" means the website of the Federal Reserve Bank of New York, currently at http://www.newyorkfed.org, or any successor source for the secured overnight financing rate identified as such by the SOFR Administrator from time to time.

"**SOFR Determination Day**" has the meaning specified in the definition of "Daily Simple SOFR".

"**SOFR Rate Day**" has the meaning specified in the definition of "Daily Simple SOFR".

"**Solvent**" means, with respect to any Person at any date of determination, that, as of such date (a) the fair value of the property of such Person is greater than the total amount of liabilities (including contingent liabilities) of such Person, (b) the present fair saleable value of the property of such Person is not less than the amount that will be required to pay the probable liability of such Person on its debts as they become absolute and matured, (c) such Person is able to pay its debts or liabilities as such debts and liabilities mature and (d) such Person is not engaged in a business and is not about to engage in a business for which such Person's property would constitute an unreasonably small capital to conduct its business. In computing the amount of contingent liabilities at any time, such liabilities shall be computed at the amount that, in light of all the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability.

"**SPAC**" means, a special purpose acquisition company that is a shell company that has raised money through an initial public offering for the sole purpose of acquiring one or more companies.

"**Sterling**" and "**GBP**" refer to the lawful currency of the United Kingdom.

<u>"**Subsidiary**" means, as to any Person, a corporation, partnership, limited liability company or other entity of which more than 50% of the equity interests having ordinary voting power for the election of the members of the board of directors or equivalent body of such entity is at the time owned, or the management of which is otherwise directly or indirectly controlled, by such Person.</u>

"**Supported QFC**" has the meaning assigned to such term in Section 9.20.

"**Swiss Francs**" refers to the lawful currency of Switzerland.

"**Taxes**" means all present or future taxes, levies, imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto.

<u>"**Tenth Amendment Effective Date**" means January 17, 2025.</u>

"**Transaction Documents**" means, collectively, this Agreement and the Security Documents; and "Transaction Document" means any of them.

**"Unadjusted Benchmark Replacement"** means the applicable Benchmark Replacement excluding the related Benchmark Replacement Adjustment.

"**Unused Commitment Fee**" has the meaning given to it in Section 2.6(f).

"**Unused Commitment Fee Rate**" means 0.30% per annum; <u>provided</u> that if the average daily Principal Outstanding Amount during any Interest Period equals or exceeds 80% of the Commitment Amount, the Unused Commitment Fee Rate for such Interest Period shall be 0.00%.

"**U.S. Government Securities Business Day**" means any day except for (a) a Saturday, (b) a Sunday or (c) a day on which the Securities Industry and Financial Markets Association recommends that the fixed income departments of its members be closed for the entire day for purposes of trading in United States government securities.

"**U.S. Person**" means any Person that is a "United States Person" as defined in Section 7701(a)(30) of the Code.

"**U.S. Special Resolution Regimes**" has the meaning assigned to such term in Section 9.20.

"**U.S. Tax Compliance Certificate**" has the meaning assigned to such term in Section 2.13(f)(ii).

"**Value**" means as of any day of determination in respect of any asset of the Borrower comprising the Collateral, the value of such asset determined by the Calculation Agent by reference to the information obtained from an Eligible Source; <u>provided</u> that if such value is not timely provided by an Eligible Source or the Calculation Agent reasonably determines that the value provided does not accurately reflect the value of such asset, the Calculation Agent, after consultation with the Borrower, may determine the Value with respect to such asset in a commercially reasonable manner.

Section 1.2 <u>Other Definitional Provisions</u>. (a) Unless otherwise specified therein, all terms defined in this Agreement shall have the defined meanings when used in any certificate or other document made or delivered pursuant hereto.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The words "hereto", "hereof", "herein" and "hereunder" and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement, and Section, and Exhibit references are to Sections of, and Exhibits to, this Agreement unless otherwise specified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Any reference herein to any Person shall be construed to include such Person's permitted successors and assigns.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) The words "include," "includes" and "including" shall be deemed to be followed by the phrase "without limitation."

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) The meanings given to terms defined herein shall be equally applicable to both the singular and plural forms of such terms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) Any references herein to agreements and other contractual instruments include all exhibits, annexes or schedules attached thereto and all previous and subsequent amendments, supplements, modifications, restatements, replacements and extensions of such agreements and other instruments, as agreed between the respective parties to such agreements or other instruments, except as such may be prohibited by the terms hereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) Unless otherwise specified herein, all accounting terms used herein shall be interpreted, all accounting determinations hereunder shall be made and all financial statements required to be delivered hereunder shall be prepared in accordance with GAAP.

**ARTICLE II**

**TERMS OF COMMITMENT AND LOANS**

Section 2.1 <u>Loans</u>. (a) Subject to the terms and conditions of this Agreement, the Lender agrees to make the Benchmark Loans and Same Day Loans (each such loan, a "**Loan**" and together, the "**Loans**") to the Borrower from time to time, on any Business Day, in an amount requested by the Borrower; <u>provided</u> that, after giving effect to any borrowing, the Principal Outstanding Amount shall not exceed the Commitment Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Commitment shall terminate on the Commitment Termination Date.

Section 2.2 <u>Borrowings of Loans</u>. (a) Subject to the terms and conditions of this Agreement, the Borrower may request that Loans be made on any Business Day; <u>provided</u>, that, subject to Section 2.1(a), each Loan must be for an amount equal to or greater than USD 1,000,000, and in increments of USD 100,000 thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In order to request a Loan, the Borrower shall give the Lender an irrevocable written loan notice substantially in the form of Exhibit A (each, a "**Loan Notice**"), which must be received by the Lender prior to 12:00 p.m., New York City time (a) in the case of Benchmark Loans, at least three (3) Business Days prior to the requested Disbursement Date, requesting a Loan on such Disbursement Date and (b) in the case of Same Day Loans, on the requested Disbursement Date or the first or second Business Day preceding such requested Disbursement Date, requesting a Loan on such Disbursement Date and setting forth the information specified in Exhibit A. Such notice shall be signed by a Responsible Officer of the Borrower. Each Same Day Loan shall automatically be converted to a Benchmark Loan (each a "**Converted Benchmark Loan**") on the third (3<sup>rd</sup>) Business Day (the "**Loan Conversion Date**") following the Disbursement Date on which such Same Day Loan was initially made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the terms and conditions of this Agreement, for any Loan, the Loan Principal Amount shall be delivered on the relevant Disbursement Date by the Lender in immediately available funds, to the following account of the Borrower:

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| | |
|:---|:---|
| &nbsp;&nbsp;The Bank of New York Mellon | &nbsp;&nbsp;The Bank of New York Mellon |
| &nbsp;&nbsp;ABA # | &nbsp;&nbsp;021000018 |
| &nbsp;&nbsp;DDA# | &nbsp;&nbsp;8900487623 |
| &nbsp;&nbsp;Fund Name: | &nbsp;&nbsp;Saba Capital Inc and Opp Fd |
| &nbsp;&nbsp;Ref | &nbsp;&nbsp;9923288400 |

---

Section 2.3 <u>Repayment of Loans; Evidence of Indebtedness</u>. (a) The Borrower hereby unconditionally promises to pay to the Lender the unpaid principal amount of each Loan on the Final Maturity Date. The Borrower hereby unconditionally further agrees to pay interest on the principal amount outstanding of each Loan from the relevant Disbursement Date until the payment in full thereof at the rates per annum, and on the dates, set forth in Section 2.6.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Lender shall maintain in accordance with its usual practice an account or accounts evidencing the Indebtedness of the Borrower to the Lender resulting from the Loans, including the amounts of principal and interest payable and paid to the Lender from time to time hereunder. The entries in the accounts maintained pursuant to this Section 2.3(b) shall be prima facie evidence of the existence and amounts of the obligations recorded therein in the absence of manifest error; <u>provided</u> that failure of the Lender to maintain any such accounts or any error therein shall not in any manner affect the obligation of the Borrower to repay the Loans in accordance with the terms of this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) It is the intention of the parties hereto that no separate promissory notes be issued to evidence Loans hereunder; <u>provided</u> that the Lender may request that any Loan made by it be evidenced by a Note. In such event, the Borrower shall prepare, execute and deliver to the Lender a Note payable to the Lender (or, if requested by the Lender, to the Lender and/or its registered assigns). Thereafter, the Loans evidenced by such Note and interest thereon shall at all times (including any assignment pursuant to Section 9.6) be represented by one or more Notes payable to the payee named therein or any permitted assignee thereof, except to the extent that the Lender or permitted assignee subsequently returns any such Note for cancellation and requests that such borrowings once again be evidenced as described in Section 2.3(b).

Section 2.4 <u>Optional Prepayment</u>. (a) The Borrower may from time to time prepay the Loans, in whole or in part and without any premium or penalty, upon irrevocable written notice to the Lender given not later than one (1) Business Day prior to the date of any such prepayment (the "**Prepayment Date**"). Any prepayment notice to the Lender shall specify the Prepayment Date and amount of prepayment, which amount shall be in whole or, if less than whole, in an aggregate principal amount of not less than USD 1,000,000, and in increments of USD 100,000 thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any notice of prepayment shall be given, the amount specified in such notice shall be due and payable on the Prepayment Date, together with accrued interest to the Prepayment Date on the amount prepaid.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Subject to the terms and conditions of this Agreement, amounts prepaid by the Borrower on account of Loans may be reborrowed.

Section 2.5 <u>[Reserved]</u>

Section 2.6 <u>Interest Rate; Unused Commitment Fee</u>. (a)Subject to the provisions of Section 2.6(b), (i) each Benchmark Loan shall bear interest (computed on the basis of the actual number of days elapsed over a year of three hundred sixty (360) days) at a rate per annum equal to (1) the Benchmark for such day, plus (2) the Applicable Margin and (ii) each Same Day Loan shall bear interest (computed on the basis of the actual number of days elapsed over a year of three hundred sixty (360) days) at a rate per annum equal to (1) the higher of (A) the Benchmark for such day or (B) the Lender's cost of funding and maintaining the Same Day Loan (as determined by the Lender and notified to the Borrower) plus (2) the Applicable Margin.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If all or a portion of (i) any Loan Principal Amount, (ii) any interest payable thereon, or (iii) the Unused Commitment Fee or any fee or other amount payable hereunder shall not be paid when due (whether at the stated maturity, by acceleration or otherwise), such overdue amount shall bear interest at a rate per annum equal to the rate described in Section 2.6(a) plus 2.0% per annum from the date of such nonpayment until such overdue amount is paid in full (before and, to the fullest extent permitted by applicable law, after judgment). Such interest shall accrue and be compounded monthly on such overdue amount, and shall be payable on demand.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower shall pay interest on the unpaid principal amount of each Loan on each Interest Payment Date until such Loan shall have been paid in full.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Each determination of an interest rate by the Calculation Agent in accordance with this Agreement shall be conclusive and binding on the Borrower and the Lender in the absence of manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Daily Simple SOFR Conforming Changes</u>. In connection with the use or administration of Daily Simple SOFR, the Calculation Agent will have the right to make Conforming Changes in consultation with the Borrower from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Document. The Calculation Agent will promptly notify the Borrower of the effectiveness of any Conforming Changes in connection with the use or administration of Daily Simple SOFR.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Borrower shall pay a fee (the "**Unused Commitment Fee**") to the Lender, which shall be payable in arrears on each Interest Payment Date, in an amount equal to the product of (i) the average daily amount by which the Commitment Amount exceeds the Principal Outstanding Amount during the immediately preceding Interest Period <u>multiplied by</u> (ii) the Unused Commitment Fee Rate <u>multiplied by</u> (iii) a fraction, the numerator of which is the actual number of days elapsed in the relevant period (including the first day but excluding the last), and the denominator of which is three hundred sixty (360) days. The Unused Commitment Fee is payable for the period commencing on the Closing Date and ending on (but excluding) the Commitment Termination Date.

Section 2.7 <u>Maximum Interest Rate</u>. In no event shall the interest charged with respect to the Loans or any other obligations of the Borrower hereunder exceed the maximum amount permitted under the laws of the State of New York or of any other applicable jurisdiction (the "**Maximum Rate**"). If the Lender shall receive interest in an amount that exceeds the Maximum Rate, the excess interest shall be applied to the principal of the Loans or, if it exceeds unpaid principal, refunded to the Borrower.

Section 2.8 <u>Inability to Determine Interest Rate</u>. (a) If for any day:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) the Calculation Agent shall have reasonably determined that adequate and reasonable means do not exist for ascertaining the Benchmark;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) the Calculation Agent determines, in a manner consistent across similarly situated borrowers, that the Benchmark will not adequately and fairly reflect the cost to the Lender of funding or maintaining its Loans; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Dollar deposits in the principal amounts of the Loans are not generally available to banks in the inter-bank market;

the Calculation Agent shall promptly give notice to the Borrower and the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If any of the circumstances described in Section 2.8(a) occurs, the Loan Principal Amount shall bear interest at the rate per annum equal to the sum of (i) the Applicable Margin for such Loan Principal Amount <u>plus</u> (ii) the Base Rate until the date on which such circumstances shall have ceased to exist. The Lender shall certify that cost to the Borrower as soon as practicable after the Calculation Agent's notification of the event in question.

Section 2.9 <u>Payments</u>. All payments made by the Borrower hereunder, whether on account of principal, interest, fees or otherwise, shall be made without set off or counterclaim (except as permitted under Section 2.13) and shall be made prior to 2:00 p.m., New York City time, on the due date thereof to the Lender, at the Lender's office and the account as may be specified by the Lender from time to time, in Dollars and in immediately available funds. Any amounts received after such time on any date may, in the discretion of the Lender, be deemed to have been received on the next succeeding Business Day for the purposes of calculating interest thereon.

Section 2.10 <u>Change in Legality; Continuation</u>. Notwithstanding any other provision herein, if the adoption of, or any change in, any Requirement of Law (other than solely with respect to the organizational or governing documents of the Lender) or in the interpretation or application thereof made subsequent to the Closing Date makes it unlawful for the Lender to make, maintain or fund the Commitment or the Principal Outstanding Amount as contemplated by this Agreement or shall on its face render invalid, or preclude enforcement of, any material provision of this Agreement or any other Transaction Document, (1) the Commitment shall be terminated by written notice to the Borrower (or such earlier time as may be required by the applicable Requirement of Law or interpretation or application thereof) and (2) the Principal Outstanding Amount shall be prepaid on demand with unpaid accrued interest thereon, all unpaid fees accrued to the Lender, the full unpaid amount of the Unused Commitment Fee and any other sum then due to the Lender under any provision of this Agreement or any other Transaction Document to which the Borrower is a party, as the case may be; <u>provided</u> that to the extent legally permissible under the circumstances as determined by Lender in its reasonable discretion, Lender agrees that it will provide Borrower with a period of at least sixty (60) days following notice of such event within which the Borrower may satisfy such payment obligations. Before giving any notice to the Borrower pursuant to this Section, the Lender shall use commercially reasonable efforts to designate a different branch office if the Lender determines that such designation will avoid the need for giving such notice and will not, in the judgment of the Lender, be otherwise materially disadvantageous to the Lender.

Section 2.11 <u>[Reserved]</u>.

Section 2.12 <u>Increased Costs</u>. (a) If the adoption or effectiveness of, or any change in, any Requirement of Law (other than solely with respect to the organizational or governing documents of the Lender) or in the interpretation or application thereof by any competent court or regulatory entity, in each case subsequent to the Closing Date, or compliance by the Lender with any request or directive from any Governmental Authority made subsequent to the Closing Date:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) shall subject the Lender to any Taxes (other than (A) Indemnified Taxes, (B) Taxes described in clauses (b) through (d) of the definition of Excluded Taxes and (C) Connection Income Taxes) on its loans, loan principal, letters of credit, commitments, or other obligations, or its deposits, reserves, other liabilities or capital attributable thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) shall impose, modify or hold applicable any reserve, special deposit, compulsory loan or similar requirement against assets held by, deposits or other liabilities in or for the account of, advances, loans or other extensions of credit by the Lender which is not otherwise included in the determination of the Benchmark under this Agreement, including the imposition of any reserves with respect to "Eurocurrency Liabilities" under Regulation D (for which purpose, the Loans shall be deemed to constitute Eurocurrency Liabilities and to be subject to such reserve requirements without benefit of or credit for proration, exceptions or offsets which may be available from time to time to the Lender under Regulation D); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) shall impose on the Lender or the London inter-bank market any other condition (other than Taxes) affecting this Agreement or any other Transaction Document to which the Lender is a party;

and the result of any of the foregoing is (a) to increase the cost to the Lender of maintaining the Commitment, effecting any Loan or maintaining the Principal Outstanding Amount by an amount which the Lender reasonably deems to be material, or (b) to reduce any amount receivable hereunder in respect thereof then, in any such case, the Borrower shall promptly pay to the Lender, as soon as practicable upon demand by the Lender, any additional amounts necessary to compensate the Lender for such increased cost or reduced amount receivable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In the event that the Lender shall have determined that the adoption or effectiveness of, or any change in, any Requirement of Law (other than solely with respect to the organizational or governing documents of the Lender) regarding capital adequacy or in the interpretation or application thereof, or compliance by the Lender or any Person controlling the Lender with any request or directive regarding capital adequacy (whether or not having the force of law) from any Governmental Authority, in each case made subsequent to the Closing Date, does or shall have the effect of reducing the rate of return on the Lender's or such Person's capital as a consequence of its obligations hereunder to a level below that which the Lender or such Person could have achieved but for such change or compliance (taking into consideration the Lender's or such Person's policies with respect to capital adequacy) by an amount deemed by the Lender to be material, then, from time to time, the Borrower shall pay to the Lender such additional amount or amounts as will compensate the Lender for such reduction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) If the Lender becomes entitled to claim any additional amounts pursuant to this Section 2.12, it shall notify the Borrower of the event by reason of which it has become so entitled. A certificate setting forth in reasonable detail as to any additional amounts payable (and the calculation thereof) pursuant to this Section 2.12 submitted by the Lender to the Borrower shall be conclusive in the absence of manifest error. The agreements in this Section 2.12 shall survive the termination of this Agreement and the repayment of the Loans and all other amounts payable hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) Notwithstanding anything contained herein to the contrary, the Borrower shall not be required to compensate the Lender pursuant to Section 2.12(a) or (b) for any such increased cost or additional amount incurred more than one hundred eighty (180) days prior to the date that the Lender demands compensation therefor; <u>provided</u> that, if the circumstances giving rise to such increased costs are retroactive, then such one hundred eighty (180) day period shall be extended to include the period of retroactive effect thereof. Before requesting compensation under this Section 2.12, the Lender shall use reasonable efforts to designate a different branch office (consistent with its internal policy and legal and regulatory restrictions) if, in the reasonable judgment of the Lender, such designation (i) would eliminate or reduce additional amounts payable pursuant to this Section 2.12 in the future, and (ii) would not subject the Lender to any unreimbursed cost or expense and (iii) would not otherwise be disadvantageous in any material respect to the Lender. The Borrower hereby agrees to pay all reasonable and documented costs and expenses (including fees, charges and disbursements of legal counsel) incurred by the Lender in connection with any such designation. Failure or delay on the part of the Lender to demand compensation pursuant to this Section 2.12 shall not constitute a waiver of the Lender's right to demand such compensation; <u>provided</u> that such compensation shall be limited as set forth in this Section 2.12.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) To the extent that the senior employees of the Lender directly responsible for administering this Agreement have actual knowledge of a change in a Requirement of Law that will result in a claim by the Lender pursuant to this Section 2.12, the Lender will use reasonable efforts to promptly provide the Borrower with notice of such change in a Requirement of Law; <u>provided</u> that the failure to do so shall not affect the Borrower's obligations under this Section 2.12.

Section 2.13 <u>Taxes</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Defined Terms</u>. For purposes of this Section 2.13, the term "applicable law" includes FATCA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Payments Free of Taxes</u>. Any and all payments by or on account of any obligation of the Borrower under any Transaction Document shall be made without deduction or withholding for any Taxes, except as required by applicable law. If any applicable law (as determined in the good faith discretion of the Borrower) requires the deduction or withholding of any Tax from any such payment by the Borrower, then the Borrower shall be entitled to make such deduction or withholding and shall timely pay the full amount deducted or withheld to the relevant Governmental Authority in accordance with applicable law and, if such Tax is an Indemnified Tax, then the sum payable by the Borrower shall be increased as necessary so that after such deduction or withholding has been made (including such deductions and withholdings applicable to additional sums payable under this Section 2.13) the Lender receives an amount equal to the sum it would have received had no such deduction or withholding been made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Payment of Other Taxes by the Borrower</u>. The Borrower shall timely pay to the relevant Governmental Authority in accordance with applicable law, or at the option of the Lender timely reimburse it for the payment of, any Other Taxes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <u>Indemnification by the Borrower</u>. The Borrower shall indemnify the Lender, within ten (10) days after demand therefor, for the full amount of any Indemnified Taxes (including Indemnified Taxes imposed or asserted on or attributable to amounts payable under this Section 2.13) payable or paid by the Lender or required to be withheld or deducted from a payment to the Lender and any reasonable expenses arising therefrom or with respect thereto, whether or not such Indemnified Taxes were correctly or legally imposed or asserted by the relevant Governmental Authority. A certificate as to the amount of such payment or liability delivered to the Borrower by the Lender shall be conclusive absent manifest error.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Evidence of Payments</u>. As soon as practicable after any payment of Taxes by the Borrower to a Governmental Authority pursuant to this Section 2.13, the Borrower shall deliver to the Lender the original or a certified copy of a receipt issued by such Governmental Authority evidencing such payment, a copy of the return reporting such payment or other evidence of such payment reasonably satisfactory to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <u>Status of Lender</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The Lender, if entitled to an exemption from or reduction of withholding Tax with respect to payments made under any Transaction Document, shall deliver to the Borrower, at the time or times reasonably requested by the Borrower, such properly completed and executed documentation reasonably requested by the Borrower as will permit such payments to be made without withholding or at a reduced rate of withholding. In addition, the Lender, if reasonably requested by the Borrower, shall deliver such other documentation prescribed by applicable law or reasonably requested by the Borrower as will enable the Borrower to determine whether or not the Lender is subject to backup withholding or information reporting requirements. Notwithstanding anything to the contrary in the preceding two sentences, the completion, execution and submission of such documentation (other than such documentation set forth in sub clauses (ii)(1), (ii)(2) and (ii)(4) below) shall not be required if in the Lender's reasonable judgment such completion, execution or submission would subject the Lender to any material unreimbursed cost or expense or would materially prejudice the legal or commercial position of the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) Without limiting the generality of the foregoing:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) if the Lender is a U.S. Person, the Lender shall deliver to the Borrower on or prior to the date on which it becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed copies of IRS Form W-9 certifying that the Lender is exempt from U.S. federal backup withholding tax;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) if the Lender is a Foreign Lender, the Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be reasonably requested by the recipient) on or prior to the date on which the Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), whichever of the following is applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) in the case of a Foreign Lender claiming the benefits of an income tax treaty to which the United States is a party (x) with respect to payments of interest under any Transaction Document, executed copies of IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "interest" article of such tax treaty and (y) with respect to any other applicable payments under any Transaction Document, IRS Form W-8BEN or W-8BEN-E, as applicable, establishing an exemption from, or reduction of, U.S. federal withholding Tax pursuant to the "business profits" or "other income" article of such tax treaty;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) executed copies of IRS Form W-8ECI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) in the case of a Foreign Lender claiming the benefits of the exemption for portfolio interest under Section 881(c) of the Code, (x) a certificate substantially in the form of Exhibit C-1 to the effect that such Foreign Lender is not a "bank" within the meaning of Section 881(c)(3)(A) of the Code, a "10 percent shareholder" of the Borrower within the meaning of Section 881(c)(3)(B) of the Code, or a "controlled foreign corporation" related to the Borrower as described in Section 881(c)(3)(C) of the Code (a "**<u>U.S. Tax Compliance Certificate</u>**") and (y) executed copies of IRS Form W-8BEN or W-8BEN-E, as applicable; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) to the extent a Foreign Lender is not the beneficial owner, executed copies of IRS Form W-8IMY, accompanied by IRS Form W-8ECI, IRS Form W-8BEN or W-8BEN-E, as applicable, a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-2 or Exhibit C-3, IRS Form W-9, and/or other certification documents from each beneficial owner, as applicable; <u>provided</u> that if the Foreign Lender is a partnership and one or more direct or indirect partners of such Foreign Lender are claiming the portfolio interest exemption, such Foreign Lender may provide a U.S. Tax Compliance Certificate substantially in the form of Exhibit C-4 on behalf of each such direct and indirect partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) if the Lender is a Foreign Lender, the Lender shall, to the extent it is legally entitled to do so, deliver to the Borrower (in such number of copies as shall be requested by the recipient) on or prior to the date on which the Foreign Lender becomes a Lender under this Agreement (and from time to time thereafter upon the reasonable request of the Borrower), executed copies of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding Tax, duly completed, together with such supplementary documentation as may be prescribed by applicable law to permit the Borrower to determine the withholding or deduction required to be made; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) if a payment made to the Lender under any Transaction Document would be subject to U.S. federal withholding Tax imposed by FATCA if the Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), the Lender shall deliver to the Borrower at the time or times prescribed by law and at such time or times reasonably requested by the Borrower such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Code) and such additional documentation reasonably requested by the Borrower as may be necessary for the Borrower to comply with its obligations under FATCA and to determine that the Lender has complied with such Lender's obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this clause (4), "FATCA" shall include any amendments made to FATCA after the Closing Date.

The Lender agrees that if any form or certification it previously delivered expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrower in writing of its legal inability to do so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <u>Treatment of Certain Refunds</u>. If any party determines, in its sole discretion exercised in good faith, that it has received a refund of any Taxes as to which it has been indemnified pursuant to this Section 2.13 (including by the payment of additional amounts pursuant to this Section 2.13), it shall pay to the indemnifying party an amount equal to such refund (but only to the extent of indemnity payments made under this Section 2.13 with respect to the Taxes giving rise to such refund), net of all out-of-pocket expenses (including Taxes) of such indemnified party and without interest (other than any interest paid by the relevant Governmental Authority with respect to such refund). Such indemnifying party, upon the request of such indemnified party, shall repay to such indemnified party the amount paid over pursuant to this clause (g) (plus any penalties, interest or other charges imposed by the relevant Governmental Authority) in the event that such indemnified party is required to repay such refund to such Governmental Authority. Notwithstanding anything to the contrary in this clause (g), in no event will the indemnified party be required to pay any amount to an indemnifying party pursuant to this clause (g) the payment of which would place the indemnified party in a less favorable net after-Tax position than the indemnified party would have been in if the Tax subject to indemnification and giving rise to such refund had not been deducted, withheld or otherwise imposed and the indemnification payments or additional amounts with respect to such Tax had never been paid. This clause shall not be construed to require any indemnified party to make available its Tax returns (or any other information relating to its Taxes that it deems confidential) to the indemnifying party or any other Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <u>Mitigation Obligations</u>. If the Lender requires the Borrower to pay any Indemnified Taxes or additional amounts to it or any Governmental Authority for the account of the Lender pursuant to this Section 2.13, then the Lender shall (at the request of the Borrower) use reasonable efforts to designate a different branch office (consistent with its internal policy and legal and regulatory restrictions) if, in the reasonable judgment of the Lender, such designation (i) would eliminate or reduce amounts payable pursuant to this Section 2.13 in the future, and (ii) would not subject the Lender to any unreimbursed cost or expense and (iii) would not otherwise be disadvantageous to the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <u>Survival</u>. Each party's obligations under this Section 2.13 shall survive any assignment of rights by, or the replacement of, a Lender, the termination of the Commitment and the repayment, satisfaction or discharge of all obligations under any Transaction Document.

Section 2.14 <u>Increase of Commitment Amount</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <u>Request for Increase</u>. Subject to compliance with the terms of this Section 2.14, the Borrower may increase the Commitment Amount then in effect with the written consent of the Lender; <u>provided</u> that, after giving effect to such increase the Commitment Amount shall not exceed $200,000,000. Such increase may be done in one or more requested increases, in $1,000,000 increments, or such other amount to be determined by the Lender (each such increase shall be referred to herein as a "**Facility Increase**").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <u>Increase Effective Date</u>. Any Facility Increase shall become effective on the date agreed by the Borrower and the Lender. If the Lender deems it advisable in its reasonable discretion, the Borrower and Lender agree to execute an amendment to this Agreement, in form and substance acceptable to Lender, to document an increase in the Commitment Amount pursuant to this Section 2.14.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <u>Conditions to Effectiveness of a Facility Increase</u>. The following are conditions precedent to such Facility Increase:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) (A) The Borrower shall have (1) given written notice to the Lender at least ten (10) Business Days (or such lesser number of days agreed by the Lender in its sole and absolute discretion) prior to the proposed date of such Facility Increase and (2) delivered to Lender a Facility Increase Request;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) No Default or Event of Default shall have occurred and be continuing on and as of the proposed date of such Facility Increase or would result from such Facility Increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) Each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party will be true and correct in all material respects on and as of the proposed date of such Facility Increase, with the same force and effect as if made on and as of such date, except those representations and warranties which are expressly specified to be made as of an earlier date, in which case such representations and warranties shall be true and correct in all material respects or all respects, as applicable, on such earlier date; <u>provided</u> that in any representation and warranty that is qualified as to "materiality", "Material Adverse Effect" or similar language, such representation and warranty shall be true and correct (after giving effect to any qualification therein) in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) On and as of the proposed date of such Facility Increase, there has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) On the proposed date of such Facility Increase and after giving effect to the Facility Increase, (A) the Aggregate Borrowing Percentage shall not exceed the Maximum Aggregate Borrowing Percentage and (B) the Borrowing Base Ratio shall not be less than the Minimum Borrowing Base Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Facility Increase shall not breach any indebtedness limitation set forth in the Borrower's constituent documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) The resolutions duly adopted by such Borrower or the general partner of such Borrower and previously delivered to the Lender authorize the Facility Increase, and such resolutions shall not have not been amended, modified, revoked or rescinded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) On or prior to the proposed date of such Facility Increase, the Borrower shall have paid to the Lender all invoiced fees and expenses to Lender incurred in accordance with this Agreement to the extent then due; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) The Lender shall have provided its written consent (in its sole and absolute discretion); <u>provided</u> that, the failure by the Lender to provide its written approval of such Facility Increase within ten (10) Business Days of delivery of the relevant Facility Increase Request shall be deemed to constitute a denial of such request for a Facility Increase.

Section 2.15 <u>Early Termination Option and Commitment Reduction</u>. Either party may terminate this Agreement as of any Business Day determined in accordance with the remainder of this Section 2.15 below (the "**Early Termination Date**") by delivering written notice of termination to the other party hereto. In the case of termination by the Borrower, the Borrower may deliver such notice of termination to the Lender not less than thirty (30) days (or such shorter period as the Lender may otherwise agree) prior to such Early Termination Date. In the case of termination by the Lender, the Lender may deliver such notice of termination to the Borrower not less than sixty (60) days prior to such Early Termination Date. On the Early Termination Date, the Commitment shall terminate and the Borrower will pay to the Lender the Principal Outstanding Amount together with any unpaid accrued interest thereon, all unpaid fees accrued to the Lender, the full unpaid amount of the Unused Commitment Fee accrued through the Early Termination Date and any other sum then due to the Lender under any provision of this Agreement or any other Transaction Document to which the Borrower is a party. The Borrower shall have the right at any time, upon three (3) Business Days prior written notice to the Lender (or such shorter period of time agreed to by the Lender), to terminate the Commitment in part, without premium or penalty, so long as such partial termination is in an amount not less than $1,000,000; <u>provided</u> that the Commitment may not be reduced to an amount less than aggregate Principal Outstanding Amount.

Section 2.16 <u>Effect of Benchmark Transition Event</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) *<u>Benchmark Replacement</u>*. Notwithstanding anything to the contrary herein or in any other Transaction Document, upon the occurrence of a Benchmark Transition Event, the Calculation Agent and the Borrower may amend this Agreement to replace the then-current Benchmark with a Benchmark Replacement. Any such amendment with respect to a Benchmark Transition Event will become effective at 5:00 p.m. (New York City time) on the fifth (5<sup>th</sup>) Business Day after the Calculation Agent has posted such proposed amendment to the Lender and the Borrower so long as the Calculation Agent has not received, by such time, written notice of objection to such amendment from the Lender. No replacement of a Benchmark with a Benchmark Replacement pursuant to this Section 2.16(a) will occur prior to the applicable Benchmark Transition Start Date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) *<u>Benchmark Replacement Conforming Changes</u>*. In connection with the implementation of a Benchmark Replacement, the Calculation Agent will have the right to make Conforming Changes from time to time and, notwithstanding anything to the contrary herein or in any other Transaction Document, any amendments implementing such Conforming Changes will become effective without any further action or consent of any other party to this Agreement or any other Transaction Document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) *<u>Notices; Standards for Decisions and Determinations</u>*. The Calculation Agent will promptly notify the Borrower and the Lender of (i) any occurrence of a Benchmark Transition Event and its related Benchmark Replacement Date, (ii) the implementation of any Benchmark Replacement, (iii) the effectiveness of any Conforming Changes, (iv) the removal or reinstatement of any tenor of a Benchmark pursuant to clause (d) below and (v) the commencement or conclusion of any Benchmark Unavailability Period. Any determination, decision or election that may be made by the Calculation Agent or, if applicable, any Lender (or group of Lenders) pursuant to this Section 2.16 including any determination with respect to a tenor, rate or adjustment or of the occurrence or non-occurrence of an event, circumstance or date and any decision to take or refrain from taking any action or any selection, will be conclusive and binding absent manifest error and may be made in its or their reasonable discretion and without consent from any other party to this Agreement or any other Transaction Document, except, in each case, as expressly required pursuant to this Section 2.16.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) *<u>Unavailability of Tenor of Benchmark</u>*. Notwithstanding anything to the contrary herein or in any other Transaction Document, at any time (including in connection with the implementation of a Benchmark Replacement), (i) if the then-current Benchmark is a term rate and either (A) any tenor for such Benchmark is not displayed on a screen or other information service that publishes such rate from time to time as selected by the Calculation Agent in its reasonable discretion or (B) the regulatory supervisor for the administrator of such Benchmark has provided a public statement or publication of information announcing that any tenor for such Benchmark is or will be no longer representative, then the Calculation Agent may modify the definition of "Interest Period" for any Benchmark settings at or after such time to remove such unavailable or non-representative tenor and (ii) if a tenor that was removed pursuant to clause (i) above either (A) is subsequently displayed on a screen or information service for a Benchmark (including a Benchmark Replacement) or (B) is not, or is no longer, subject to an announcement that it is or will no longer be representative for a Benchmark (including a Benchmark Replacement), then the Calculation Agent may modify the definition of "Interest Period" for all Benchmark settings at or after such time to reinstate such previously removed tenor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) <u>Benchmark Unavailability Period</u>. Upon the Borrower's receipt of notice of the commencement of a Benchmark Unavailability Period, the Borrower may revoke any pending request for a borrowing of Loans to be made during any Benchmark Unavailability Period and interest on each affected Loan shall accrue daily at a rate per annum equal to the sum of (i) the Base Rate plus (ii) the Applicable Margin.

**ARTICLE III**

**REPRESENTATIONS AND WARRANTIES OF THE BORROWER**

To induce the Lender to enter into this Agreement and to fund the Loans, the Borrower hereby represents and warrants to the Lender as of the date hereof, as of the Closing Date and as of each Disbursement Date (other than any such representations or warranties that, by their terms, refer to a specific date, in which case as of such specific date) that:

Section 3.1 <u>Financial Condition</u>. (a) The Borrower's most recently available statement of assets and liabilities and the Borrower's related portfolio of investments, statements of operations and changes in net assets for the fiscal year reported on by a nationally recognized auditor and set forth in the annual report for the fiscal year ended on such date, together with the notes and schedules thereto, and each financial statement delivered by the Borrower to the Lender in accordance with Section 6.1, present fairly, in conformity with GAAP, the financial position of the Borrower as of such date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The unaudited balance sheets of the Borrower as at the end of its most recently ended semi-annual fiscal period other than the period referred to in clause (a) above (or, if the date as of which such representation is made falls within the 75 day period following the end of its most recently ended semi-annual fiscal period and such balance sheets are not available, the immediately preceding semi-annual fiscal period), and the related unaudited statements of operations and changes in net assets, copies of which have been furnished to the Lender, presented fairly the financial condition of the Borrower as at the dates stated, and the results of its operations and its sources and applications of funds for the semi-annual fiscal period then ended (subject to normal year-end audit adjustments and the absence of footnotes).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) Each of the financial statements of the Borrower (whether audited or unaudited) delivered to the Lender under the terms of this Agreement fairly present all material contingent liabilities in accordance with GAAP. The Borrower has no material contingent liabilities or unusual forward or long-term commitments not disclosed therein that could reasonably be expected to have a Material Adverse Effect.

Section 3.2 <u>No Material Adverse Effect</u>. Since the end of the period covered by its most recently issued fiscal year-end financial statements, there has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect.

Section 3.3 <u>Existence and Power; Investment Company</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) The Borrower is a business trust under the laws of the Commonwealth of Massachusetts. The Borrower is duly organized, validly existing and in good standing under the laws of the Commonwealth of Massachusetts and has all trust powers and <u>all authorizations and approvals required to carry on its business as now conducted. Each Permitted Subsidiary is duly organized, validly existing and in good standing under the laws of its jurisdiction of formation or incorporation and has all necessary powers and</u> all authorizations and approvals required to carry on its business as now conducted. The Borrower is<u>and each Permitted Subsidiary are</u> duly qualified to do business and is in good standing in each jurisdiction in which the nature of its business, assets, and properties, including, without limitation, the performance of the Borrower's obligations under the Transaction Documents, requires such qualification except where failure to be so qualified or in good standing would not reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower is registered as a, closed-end management investment company under the Investment Company Act.

Section 3.4 <u>Organizational Power; Authorization; Enforceable Obligations</u>. (a) The execution and delivery by the Borrower of, and the performance by the Borrower of its obligations under this Agreement and each of the other Transaction Documents, and the other instruments, certificates and agreements contemplated hereby and thereby, are within its trust powers, and have been duly authorized by all requisite action by the Borrower.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) This Agreement and each of the other Transaction Documents, and the other instruments, certificates and agreements contemplated hereby and thereby, have been duly executed and delivered by the Borrower, and constitute the legal, valid and binding obligations of the Borrower enforceable against the Borrower in accordance with their respective terms, except as enforceability may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) No consent or authorization of, approval by, notice to, filing with or other act by or in respect of, any Person is required (except for (i) filings and registrations necessary to perfect the security interest in the Collateral for the benefit of the Lender pursuant to the Security Documents, and (ii) any consents, authorizations, approvals, resolutions, notices, filings, licenses, exemptions, notarizations, registrations or other acts obtained prior to the Closing Date) in connection with the borrowings hereunder or with the execution, delivery or performance by the Borrower, or the validity or enforceability of this Agreement or any of the other Transaction Documents to which it is a party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) No limitation on the powers of the Borrower to borrow, including, without limitation, under the Investment Company Act or the Borrower's governing documents or the Prospectus, will be exceeded as a result of borrowings under this Agreement.

Section 3.5 <u>No Legal Bar</u>. The execution, delivery and performance by the Borrower of this Agreement and each of the other Transaction Documents to which it is a party, the borrowings hereunder and the use of the proceeds thereof will not violate any Requirement of Law (including the Investment Company Act) or any Contractual Obligation of the Borrower and will not result in, or require, the creation or imposition of any Lien on any of its properties or revenues pursuant to any such Requirement of Law or Contractual Obligation (other than Permitted Liens).

Section 3.6 <u>No Material Litigation</u>. No litigation, investigation or proceeding of or before any arbitrator, self-regulatory organization or Governmental Authority is pending or, to the Borrower's knowledge, threatened in writing by or against the Borrower or against<u>any Permitted Subsidiary or</u> any of its<u>their respective</u> properties or revenues (1) with respect to this Agreement and each of the other Transaction Documents to which it is a party or the transaction contemplated hereby or thereby, or (2) which, individually or in the aggregate, could reasonably be expected to have a Material Adverse Effect.

Section 3.7 <u>Compliance</u>. The Borrower is<u>and each Permitted Subsidiary are</u> in compliance in all respects with all Requirements of Law (including<u>, as applicable,</u> the Investment Company Act) and the requirements of any Governmental Authority with respect thereto except where (i) noncompliance therewith could not reasonably be expected to have a Material Adverse Effect, or (ii) exemptive relief or no-action relief has been obtained therefrom and remains in effect.

Section 3.8 <u>Ownership of Property; Liens; Compliance</u>. The Borrower has<u>and each Permitted Subsidiary have</u> good title to all of its<u>their respective</u> property or<u>and</u> assets<u>, as applicable</u>, except for such failures as could not reasonably be expected to have a Material Adverse Effect, and none of such property or assets is subject to any Lien (other than Permitted Liens). All of the Borrower's <u>and each Permitted Subsidiary's</u> properties and assets are in compliance with all Requirements of Law applicable to it, except where noncompliance could not reasonably be expected to have, in the aggregate, a Material Adverse Effect.

Section 3.9 <u>Taxes</u>. The Borrower is a RIC. To the extent that failure to do so could reasonably be expected to have a Material Adverse Effect, the Borrower has timely filed or caused to be filed all U.S. federal income Tax returns and all other material Tax returns that are due and required by law to be filed by it and has timely paid all U.S. federal income and all other material Taxes that are due except for any Taxes which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been established in accordance with GAAP.

Section 3.10 <u>Regulations T, U and X</u>. The Borrower's use of the proceeds of any Loan will not violate any provision of Regulation T, Regulation U or Regulation X.

Section 3.11 <u>ERISA</u>. (a) Except as would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect, the Borrower has not, since its incorporation, maintained, contributed to or had an obligation to contribute to, or otherwise has any liability with respect to any Employee Plans or Multiemployer Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Assuming that the sources of the funds for the Loan do not constitute "plan assets" subject to ERISA, no Loan will constitute a "prohibited transaction" within the meaning of Section 406(a)(1)(B) of ERISA or Section 4975(c)(1)(B) of the Code for which an exemption is not available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower's underlying assets do not constitute "plan assets," within the meaning of the U.S. Department of Labor Regulation at 29 C.F.R. § 2510.3-101, as modified in application by Section 3(42) of ERISA (<u>"Plan Assets</u>").

Section 3.12 <u>Ownership of Assets</u>. The Borrower is the sole beneficial owner of all assets constituting the Collateral (subject to Permitted Liens). The Borrower has good and marketable title to all of its assets (subject to Permitted Liens), except where failure to have such title would not reasonably be expected to have a Material Adverse Effect.

Section 3.14 <u>Non-Affiliation with Lender</u>. To the Borrower's knowledge, the Lender is not an "affiliated person", or an affiliated person of an affiliated person, of the Borrower (within the meaning of Section 2(a)(3) of the Investment Company Act).

Section 3.15 <u>Subsidiaries</u>. The Borrower has no subsidiaries<u>Subsidiary other than the Permitted Subsidiaries</u>.

Section 3.16 <u>Disclosure</u>. Neither the Public Filings nor any of the other reports, financial statements, certificates or other written information furnished by or on behalf of the Borrower to the Lender in connection with this Agreement and the other Transaction Documents to which the Borrower is a party or delivered hereunder or thereunder (as modified or supplemented by other information so furnished), taken as a whole, contain any material misstatement of fact or omit to state any material fact necessary to make the statements therein, in the light of the circumstances under which they were made, not misleading; <u>provided</u>, <u>however</u>, that, with respect to projected financial information, the Borrower represents only that such information was prepared in good faith based upon assumptions believed to be reasonable at the time. As of the Closing Date, the Borrower has disclosed to the Lender in writing all facts which, to the best of the Borrower's knowledge after due inquiry (to the extent the Borrower can now reasonably foresee), may give rise to the reasonable possibility of a Material Adverse Effect.

Section 3.17 <u>Ranking</u>. The debt arising under this Agreement and the Notes ranks at least <u>pari passu</u> in all respects with all of the Borrower's other debt obligations (actual or contingent) other than those obligations which are entitled to priority under any Requirement of Law.

Section 3.18 <u>No Immunity</u>. None of the Borrower or any of its properties has any right of immunity on the grounds of sovereignty or otherwise from the jurisdiction of any court or from set-off or any legal process (whether through service or notice, attachment prior to judgment, attachment in aid of execution, or otherwise) under the laws of any jurisdiction.

Section 3.19 <u>Indebtedness</u>. (a) The<u>Neither the</u> Borrower does not have<u>nor any Permitted Subsidiary has</u> any Indebtedness other than Permitted Indebtedness. As of the Closing Date, the Borrower does not have outstanding any Preferred Stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower is not subject to any Requirement of Law (other than the Investment Company Act and Regulation X) which limits its ability to incur Indebtedness hereunder. The Borrower has not entered into any agreement with any Governmental Authority limiting its ability to incur Indebtedness hereunder.

Section 3.20 <u>Name</u>. Except as disclosed to the Secured Party pursuant to Section 7.11 (Change of Name, Corporate Structure, Chief Executive Office or Registered Office), the name set forth in the Preamble to this Agreement is the Borrower's full legal name. The Borrower's name prior to May 13, 2021 was Voya Prime Rate Trust, and the Borrower did not have any other name during and has not been changed within the past five (5) years.

Section 3.21 <u>Anti-Money Laundering and Anti-Corruption</u>. The Borrower has not knowingly received any assets in violation of the Anti-Money Laundering Laws and Anti-Corruption Laws.

Section 3.22 <u>Sanctions</u>. Neither the Borrower, the Investment Adviser nor any Person directly or indirectly controlled by the Borrower, (a) is a Sanctioned Entity; (b) is controlled by or is acting on behalf of a Sanctioned Entity; (c) to the Borrower's knowledge is under investigation for an alleged breach of Sanction(s) by a Governmental Authority that enforces Sanctions; or (d) will fund any repayment of the obligations with proceeds derived from any transaction that would be prohibited by Sanctions or would otherwise cause the Lender or any other party to this Agreement to be in breach of any Sanctions.

Section 3.23 <u>Investment Adviser</u>. The Investment Adviser is currently registered under the U.S. Investment Advisers Act of 1940 (as amended from time to time). The Investment Adviser is in compliance in all material respects with the terms of its investment advisory agreement with the Borrower.

Section 3.24 <u>Solvency</u>. The Borrower is Solvent as of the date of the making of this representation and will be Solvent immediately after the making of any Loans to it.

**ARTICLE IV**

**CONDITIONS PRECEDENT TO COMMITMENT**

The Commitment of the Lender hereunder is subject to the satisfaction of the following conditions precedent (unless otherwise waived in writing by the Lender):

Section 4.1 <u>Transaction Documents</u>. The Lender shall have received this Agreement, the Control Agreement, the Blocked Account Agreement, the Security Agreement and the Custody Agreement, each executed and delivered by a Responsible Officer of the Borrower.

Section 4.2 <u>Financing Statements; Lien Searches</u>. The Lender shall have received the results of a recent Uniform Commercial Code, tax and judgment lien search with respect to Borrower in Massachusetts, and such search shall reveal no Liens on any of the Collateral except for Permitted Liens or Liens to be discharged on or prior to the Closing Date pursuant to documentation satisfactory to the Lender; and the Lender shall have filed a Uniform Commercial Code financing statement naming the Borrower as debtor and the Lender as Secured Party and otherwise reasonably acceptable to the Lender in the office of the Secretary of the Commonwealth of Massachusetts and received evidence satisfactory to it of such filing.

Section 4.3 <u>Representations and Warranties</u>. Each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party shall be true and correct on and as of the Closing Date or, as to any such representations or warranties that, by their terms, refer to a specific date other than the Closing Date, as of such specific date.

Section 4.4 <u>No Default or Event of Default</u>. No Default or Event of Default shall have occurred and be continuing (i) on the Closing Date or (ii) immediately after giving effect to the consummation of the transactions contemplated hereby.

Section 4.5 <u>Officer's Certificate</u>. The Lender shall have received a signed certificate from the Secretary or Assistant Secretary of the Borrower in form and substance satisfactory to the Lender and dated the Closing Date as to the incumbency of, and bearing specimen signatures of, the Responsible Officers who are authorized to execute and take actions under the Transaction Documents for and on behalf of the Borrower, and certifying and attaching copies of (i) the resolutions of the Borrower's board of trustees authorizing the transactions contemplated hereby, (ii) the current governing documents as then in effect, (iii) the investment advisory agreement between the Borrower and the Investment Adviser as then in effect, along with any other investment management or sub-advisory agreements related to the management of the Borrower to which the Borrower or Investment Adviser is a party as then in effect and (iv) the Custody Agreement;

Section 4.6 <u>Constituent Documents</u>. The Lender shall have received a true and complete copy of the declaration of trust and bylaws of the Borrower, with all amendments, certified as of a recent date by the Secretary or Assistant Secretary of the Borrower.

Section 4.7 <u>Certificate of Good Standing</u>. The Lender shall have received a legal existence and good standing certificate for the Borrower from the Secretary of the Commonwealth of Massachusetts, dated as of a recent date.

Section 4.8 <u>Certificate of Responsible Officer</u>. The Lender shall have received a certificate from a Responsible Officer of the Borrower confirming compliance with the conditions precedent set out in Sections 4.3 (in all material respects) and 4.4 hereof and stating that the Borrower is Solvent.

Section 4.9 <u>Legal Opinions</u>. The Lender shall have received the executed legal opinions of Purrington Moody Weil LLP, New York counsel to the Borrower, Foley Hoag LLP, Massachusetts counsel to the Borrower and Schulte Roth & Zabel LLP, special counsel to the Borrower, each in form and substance reasonably satisfactory to the Lender and dated the Closing Date.

**ARTICLE V**

**CONDITIONS PRECEDENT TO LOANS**

The Lender's obligation to make any Loan (other than a Converted Benchmark Loan) to the Borrower on a Disbursement Date is subject to the satisfaction of the following conditions precedent (unless otherwise waived in writing by the Lender):

Section 5.1 <u>Representations and Warranties</u>. Each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party shall be true and correct in all material respects on and as of such Disbursement Date, other than any such representations or warranties that, by their terms, refer to a specific date other than such Disbursement Date, in which case as of such specific date.

Section 5.2 <u>No Default or Event of Default</u>. No Default or Event of Default shall have occurred and be continuing (i) on such Disbursement Date or (ii) immediately after giving effect to the relevant Loan.

Section 5.3 <u>Compliance</u>. After giving effect to the relevant Loan:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Principal Outstanding Amount shall not exceed the Commitment Amount;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) (i) the Aggregate Borrowing Percentage shall not exceed the Maximum Aggregate Borrowing Percentage and (ii) the Borrowing Base Ratio shall not be less than the Minimum Borrowing Base Ratio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower shall be in compliance with all applicable limitations on its Indebtedness under its Prospectus, its governing documents or the Investment Company Act (including, without limitation, Section 18(a)(1)(a) under the Investment Company Act, as amended by any rules adopted thereunder and after giving effect to any exemptive relief with respect thereto issued by the SEC that is applicable to the Borrower).

Section 5.4 <u>No Material Adverse Effect</u>. There has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect.

Section 5.5 <u>Loan Notice</u>. The Lender shall have received a Loan Notice as set forth in Section 2.2(b) above.

Each Loan (other than a Converted Benchmark Loan) shall be deemed to constitute a representation and warranty by the Borrower on the date thereof as to the matters specified in Sections 5.1 and 5.2.

**ARTICLE VI**

**AFFIRMATIVE COVENANTS**

The Borrower hereby agrees that, so long as the Commitment is outstanding hereunder or any Loan or other obligation hereunder or under the other Transaction Documents shall remain unpaid or unsatisfied, unless the Lender shall otherwise have given its prior written consent:

Section 6.1 <u>Financial Statements and Reports</u>. The Borrower will deliver, or cause to be delivered to the Lender:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) as soon as available and in any event within 120 days after the end of each fiscal year of the Borrower, financial statements and a statement of assets and liabilities of the Borrower, including the Borrower's portfolio of investments, as of the end of such fiscal year, and the related statements of operations and changes in net assets of the Borrower for such fiscal year, prepared in accordance with GAAP, consistently applied, accompanied by an audit report thereon issued by any independent public accountants of nationally recognized standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) as soon as available and in any event within seventy-five (75) days after the end of the first semi-annual period of each fiscal year of the Borrower, financial statements and a statement of assets and liabilities of the Borrower, including the Borrower's portfolio of investments, as of the end of such period, and the related statements of operations and changes in net assets of the Borrower of such period, prepared in accordance with GAAP, consistently applied, and certified (subject to the absence of footnotes and normal year-end adjustments) as fairly presenting the financial condition, and results of operations of the Borrower in accordance with GAAP consistently applied by a Responsible Officer of the Borrower or accompanied by an audit report thereon issued by any independent public accountants of nationally recognized standing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) (i) no later than five (5) Business Days after the end of each calendar month, a report of the net asset value of the Borrower as at the end of the immediately preceding calendar month, (ii) a report detailing characteristics of the Eligible Loans owned by the Borrower in substantially the form attached hereto as Exhibit H and (iii) no later than five (5) Business Days after the end of each calendar quarter, a certificate of the Borrower certifying as to compliance with requirements of the terms of this Agreement (including the financial covenants and limitations on Permitted Indebtedness set forth herein) in substantially the form attached hereto as Exhibit I;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) promptly upon the filing thereof with the SEC, the mailing thereof to shareholders of the Borrower or (solely with respect to press releases) publication thereof, copies of all reports to shareholders, amendments and supplements to the Borrower's registration statement (other than the exhibits thereto), press releases that make material modifications to the Borrower's investment objectives, strategies or restrictions, non-routine proxy statements, financial statements and other materials of a financial or otherwise material nature (unless previously delivered pursuant to clause (a) or (b) above), in each case as they relate to the Borrower <u>or any Permitted Subsidiary, as applicable</u>;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) promptly upon availability thereof, copies of any reports provided to the SEC regarding the Borrower's non-compliance with the Borrower's derivatives or VaR policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) daily reports detailing (i) the assets in the Collateral Accounts and any cash balances and debit balances (including pending transactions), including transaction reports in respect thereof (ii) the principal amount of any outstanding advances made by the Custodian to the Borrower and (iii) such other information necessary to allow the Lender to monitor the assets in the Collateral Accounts and determine compliance with the financial covenants described in Section 6.4, Eligibility Criteria, Investment Guidelines and Portfolio Requirements, which, in each case, may be provided by granting the Lender read-only online access to such reporting provided by the Custodian;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) promptly upon request, such additional financial and other information regarding the business of the Borrower<u>, a Permitted Subsidiary</u> or the Collateral as the Lender from time to time may reasonably request and which is reasonably accessible to the Borrower;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) [Reserved];

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) promptly upon request by the Lender at any time, the Borrower will furnish to the Lender a statement in conformity with the requirements of Form FR U-1 referred to in Regulation U;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) promptly following any request therefore, information and documentation reasonably requested by the Lender for purposes of compliance with applicable "know your customer" requirements under the Patriot Act or other applicable Anti-Money Laundering Laws and Anti-Corruption Laws; <u>provided</u> that to the extent the information required by clauses (a), (b), (c)(i), and (d) of this Section 6.1, (except, with respect to clause (d) of this Section 6.1, such information relating to material modifications of the Borrower's investment objectives, policies or restrictions), is then readily available (in printable format) under the Borrower's name on EDGAR (i.e., the Electronic Data Gathering, Analysis and Retrieval System of the SEC) or at the Borrower's website, Sabacef.com (or any successor website the address of which the Borrower shall have provided written notice thereof to the Lender), the Borrower shall be deemed to have delivered such information to the Lender.

Section 6.2 <u>[Reserved]</u>.

Section 6.3 <u>Maintenance of Insurance</u>. The Borrower will maintain with financially sound and reputable insurance companies, policies with respect to its assets and property and business of the Borrower against at least such risks and contingencies (and with no greater risk retentions) and in at least such amounts as are required by the Investment Company Act.

Section 6.4 <u>Financial Covenants</u>. The Borrower will observe and comply with each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) If at any time the Principal Outstanding Amount exceeds the Commitment Amount the Borrower, within three (3) Business Days of the earlier of becoming aware of or receipt of notice of such breach, shall prepay the Loans such that the Principal Outstanding Amount is equal to or less than the Commitment Amount; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) If at any time (i) the Aggregate Borrowing Percentage shall exceed the Maximum Aggregate Borrowing Percentage or (ii) the Borrowing Base Ratio shall be less than the Minimum Borrowing Base Ratio, the Borrower shall, within one (1) Business Day of the earlier of an officer of Borrower having actual knowledge of or receipt of notice of such breach, take such action as to cure such breach within three (3) Business Days.

Section 6.5 <u>Conduct of Business and Maintenance of Existence; Compliance with Laws</u>. (a) The Borrower will continue to engage in substantially the same business as conducted by the Borrower at the Closing Date, taken as a whole.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Borrower will preserve, renew and keep in full force and effect its existence and good standing as a Massachusetts business trust and its rights, privileges and franchises necessary for the normal conduct of its business. The Borrower will maintain in full force and effect its registration as a, closed-end, management investment company under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower will<u>, and will cause each Permitted Subsidiary to,</u> comply in all respects with all Requirements of Law (including<u>, as applicable,</u> the Investment Company Act) and the requirements of any Governmental Authority with respect thereto except where (i) non-compliance therewith would not reasonably be expected to have a Material Adverse Effect, or (ii) exemptive relief or no-action relief has been obtained therefrom and remains in effect.

Section 6.6 <u>Security Documents</u>. The Borrower will observe and perform every covenant and obligation imposed upon the Borrower when required, after giving effect to any applicable notice requirements or grace periods, in accordance with the Security Documents.

Section 6.7 <u>Inspection of Assets; Books and Records; Discussions</u>. The Borrower will, or will cause the Custodian (on the Borrower's behalf) to, keep proper books of record and account in which full, true and correct entries shall be made of all dealings and transactions in relation to Borrower's business and activities in accordance with applicable Requirements of Law, including the Investment Company Act, and will, during normal business hours, with reasonable advance notice, permit representatives of the Lender to examine and make abstracts from any of its books and records and to discuss its affairs, finances and accounts with its officers, employees and independent public accountants no more than once every calendar year, <u>provided</u> that, during the continuance of a Default or an Event of Default, the Borrower will permit representatives of the Lender to conduct such examinations at any time during normal business hours, with reasonable advance notice and as often as may be desired. The right of inspection described in this Section 6.7 shall not apply to any information regarding shareholders of the Borrower to the extent the Borrower is prohibited from providing such information by Regulation S-P, 17 CFR Part 248.

Section 6.8 <u>Custody and Control</u>. The Borrower will at all times cause all Eligible Assets of the Borrower that constitute Collateral to be (i) custodied with the Custodian and (ii) subject to the Custodian's control and custody in accordance with a Custody Agreement, and the Control Agreement or the Blocked Account Agreement (as applicable); <u>provided</u>, that if such Eligible Asset is an Eligible Loan then concurrently with any request to register such Eligible Loan in the name of the Borrower, the Borrower shall (i) deliver instructions to all financial institutions, trustees, or any obligors related to such Eligible Loan requiring that any instrument evidencing such Eligible Loan be delivered to the Custodian and (ii) at all times cause all loan documents related to such Eligible Loan to be held at the Custodian.

Section 6.9 <u>Taxes and Other Claims</u>. The Borrower will continue to be treated as a RIC and will make sufficient distributions to qualify to be treated as a RIC. The Borrower will timely file or cause to be filed all U.S. federal income and all other material Tax returns that are due and required by law to be filed by it and will timely pay all U.S. federal income and all other material Taxes that are due and required by law to be paid by it except for any Taxes (i) which are being contested in good faith by appropriate proceedings and with respect to which adequate reserves have been established in accordance with GAAP or (ii) where the failure to pay or discharge such Taxes would not reasonably be expected to have a Material Adverse Effect.

Section 6.10 <u>Further Acts</u>. The Borrower will promptly execute and deliver, or cause to be executed and delivered, such additional instruments, certificates or documents, and take all such actions, as the Lender may reasonably request, for the purposes of implementing or effectuating the provisions of this Agreement and each of the other Transaction Documents (including, without limitation, for the purposes of creating, maintaining, defending, perfecting or renewing the rights of the Lender with respect to the Collateral or any additions thereto or replacements or proceeds thereof or with respect to any other Collateral hereafter acquired) pursuant hereto or thereto, and enabling the Lender to exercise and enforce its rights under this Agreement or the other Transaction Documents to which the Borrower is a party, and giving effect to the provisions of this Agreement and the other Transaction Documents to which the Borrower is a party.

Section 6.11 <u>Notices</u>. The Borrower will promptly give notice to the Lender of:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) any officer of the Borrower obtaining knowledge of the occurrence of any Default (including, without limitation, a breach of the Maximum Aggregate Borrowing Percentage or the Minimum Borrowing Base Ratio) or Event of Default; <u>provided</u> that, in any event, the Borrower shall provide such notice within three (3) Business Days of any officer of the Borrower obtaining knowledge of the occurrence of such Default or Event of Default; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any officer of the Borrower obtaining knowledge of the Borrower's non-compliance with its ERISA representations made in Section 3.11; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the commencement of, or any material adverse development in, any litigation, investigation or proceeding against the Borrower <u>or any Permitted Subsidiary</u> that could reasonably be expected to have a Material Adverse Effect; <u>provided</u> that, in any event, the Borrower shall provide within five (5) Business Days of any officer of the Borrower obtaining knowledge of the occurrence of such commencement or development, notice thereof with a description thereof in reasonable detail; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) any officer of the Borrower obtaining knowledge that an asset held in the Collateral Accounts or otherwise pledged as Collateral no longer meets the requirements to be an Eligible Asset; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) any officer of the Borrower obtaining knowledge that the Lender is an "affiliated person", or an affiliated person of an affiliated person, of the Borrower (within the meaning of Section 2(a)(3) of the Investment Company Act); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) any officer of the Borrower obtaining knowledge of any Lien or claim made or asserted against any of the Collateral (other than Permitted Liens); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) any amendment, modification or other alteration of its governing documents, registration statement or its investment advisory agreement to the same extent and at such time (or promptly thereafter) as it would be required to provide notice thereof to its investors; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) any material amendment, modification or waiver to the Custody Agreement; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any officer of the Borrower obtaining knowledge of any assertion (whether written or oral) by a Governmental Authority that the Borrower is not or may not qualify as a RIC, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) any officer of the Borrower obtaining knowledge of the occurrence of any event having a Material Adverse Effect; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the implementation by the Borrower pursuant to its policies and procedures of the requirements of Rule 18f-4 of the Investment Company Act.

Except as otherwise provided herein, each notice pursuant to this Section 6.11 shall be accompanied by a statement of a Responsible Officer of the Borrower setting forth details of the occurrence referred to therein and stating what action the Borrower, directly or indirectly, proposes to take with respect thereto, as applicable.

Section 6.12 <u>Compliance with Investment Policies and Restrictions</u>. The Borrower will<u>, and will cause each Permitted Subsidiary to,</u> comply in all material respects with all of the terms and conditions of its<u>the Borrower's</u> investment policies and restrictions set forth therein in its governing documents and its Prospectus.

Section 6.13 <u>Use of Proceeds</u>. The proceeds of each Loan made under this Agreement will be used by the Borrower in a manner that complies with all Requirements of Law, including for the refinancing of existing Indebtedness <u>of the Borrower</u>, making new portfolio investments, leverage and for general corporate purposes. The Borrower agrees to respond promptly to any reasonable requests for information related to its use of Loan proceeds to the extent required by the Lender in connection with the Lender's determination of its compliance with the Board of Governor's Regulation W (12 C.F.R. Part 223). The Borrower shall not to its actual knowledge use the proceeds of any Loan hereunder to purchase any asset or securities from the Lender's non-bank "affiliates" (as such term is defined in 12 C.F.R. Part 223). In connection with each Loan Notice hereunder, the Borrower shall be deemed to have represented and warranted to the Lender on such Disbursement Date that, to its actual knowledge, as of the date of the requested Loan, the proceeds of such Loan will not be used by the Borrower to, directly or indirectly, either (x) purchase any asset or securities from the Lender's "affiliate" (as such term is defined in 12 C.F.R. Part 223) or (y) invest in any fund sponsored by the Lender or Affiliate thereof.

Section 6.14 <u>Internet Passwords</u>. The Borrower will provide or cause the Custodian to provide to the Lender, as soon as practicable, the relevant passwords for the purposes of enabling Lender to have "read-only" internet access to the Collateral Accounts through any online service provided by the Custodian.

Section 6.15 <u>Status of Borrower</u>. The Borrower shall at all times qualify as a RIC.

Section 6.16 <u>Compliance with Anti-Money Laundering Laws and Anti-Corruption Laws</u>. The Borrower, the Investment Adviser and each Person directly or indirectly controlled by the Borrower shall, (a) comply with all applicable Anti-Money Laundering Laws and Anti-Corruption Laws; (b) directly or indirectly, maintain policies and procedures reasonably designed to ensure compliance with all applicable laws regarding Sanctions and export controls administered and enforced by OFAC, Anti-Money Laundering Laws and Anti-Corruption Laws (including, without limitation, those promulgated by or under the Patriot Act and the U.S. Bank Secrecy Act of 1970) in all material respects; and (c) ensure it does not use any of the Loans in violation of any Anti-Corruption Laws or Anti-Money Laundering Laws.

Section 6.17 <u>Compliance with Sanctions</u>. Neither the Borrower, the Investment Adviser and nor any Person directly or indirectly controlled by the Borrower, shall use the proceeds of any Loan hereunder, or lend, contribute, or otherwise make available such proceeds to any subsidiary<u>Subsidiary</u>, joint venture partner, or other Person (a) to fund any activities or business of or with a Sanctioned Entity, or (b) in any manner that would be prohibited by Sanctions or would otherwise cause a Lender to be in breach of any Sanctions. The Borrower shall comply with all applicable Sanctions in all material respects, and shall, directly or indirectly, maintain policies and procedures reasonably designed to ensure compliance with Sanctions.

**ARTICLE VII**

**NEGATIVE COVENANTS**

The Borrower hereby agrees that, so long as the Commitment is outstanding hereunder or any Loan or other obligation hereunder or under the other Transaction Documents shall remain unpaid or unsatisfied, without the prior written consent of the Lender:

Section 7.1 <u>Indebtedness</u>. The Borrower will not<u>, and will procure that each Permitted Subsidiary will not, directly or indirectly,</u> create, incur, assume, or otherwise become liable with respect to any Indebtedness, except for <u>(a) with respect to the Borrower,</u> (i) Indebtedness under this Agreement and the other Transaction Documents, (ii) obligations of the Borrower with respect to management, shareholder servicing and any fees owing to the Investment Adviser, (iii) Indebtedness incurred by the Borrower in the ordinary course of business in favor of the Custodian in connection of the settlement of purchases or sales of portfolio investments within the Collateral Accounts and (iv) Permitted Derivative Transactions <u>and (b) with respect to each Permitted Subsidiary, Indebtedness incurred in connection with Permitted Subsidiary Transactions</u> (collectively, "**Permitted Indebtedness**").

Section 7.2 <u>Investment Policies; Fiscal Year</u>. The Borrower will not (i) amend, modify or otherwise alter its investment policies or otherwise amend its governing documents or Prospectus after the Closing Date in each case in a manner that would require shareholder approval or that could reasonably be expected to have a Material Adverse Effect, in each case without the Lender's prior written consent (such consent not to be unreasonably withheld or delayed); or (ii) change the fiscal year of the Borrower without having provided thirty (30) days' prior written notice of such changes to the Lender.

Section 7.3 <u>Accounting Changes</u>. The Borrower will not change any of its accounting policies or principles in any material respect without the Lender's prior written consent (such consent not to be unreasonably withheld or delayed).

Section 7.4 <u>Non-Affiliation with Lender</u>. The Borrower will not at any time knowingly become an Affiliate of the Lender or any Affiliate of the Lender known to the Borrower.

Section 7.5 <u>No Subsidiary</u>. The Borrower will not at any time have any subsidiary.<u>Subsidiary other than a Permitted Subsidiary</u>

Section 7.6 <u>Burdensome Agreements</u>. The Borrower will not directly or indirectly, enter into any Contractual Obligations (other than this Agreement and other Transaction Documents) that limit the ability of the Borrower to create, incur, assume or suffer to exist Liens on the Collateral in favor of the Lender as required under the Transaction Documents.

Section 7.7 <u>Merger, Consolidation, or Sale of Assets</u>. The Borrower will not consolidate or merge with or into any other Person, nor will the Borrower sell, lease or otherwise transfer, directly or indirectly, all or any substantial part of its assets to any other Person (in each case, whether in one transaction or a series of related transactions) with the Lender's prior written consent, except that the Borrower may sell its assets in the ordinary course of business as described in its Public Filings.

Section 7.8 <u>Security Interest</u>. From and after the Closing Date, except with respect to actions taken at the direction of the Lender, the Borrower will not: (a) permit (to the extent within the Borrower's control) or take any action that would permit the validity or effectiveness of the Security Agreement or the grant of Liens in favor of the Secured Party thereunder to be impaired, or permit the Liens created thereunder to be amended, subordinated, impaired, terminated or discharged, except as may be permitted hereby or thereby; (b) take any action that would permit any Lien (other than Permitted Liens) to be created on the Collateral; or (c) take any action that would permit the Lien created under the Security Agreement not to constitute a valid and (except with respect to Permitted Liens) first priority security interest in the Collateral.

Section 7.9 <u>Custodian Changes</u>. The Borrower will not change the Custodian, unless (i) the replacement Custodian shall have executed and delivered counterparts of a control agreement reasonably acceptable in form and substance to the Lender and (ii) either (A) the replacement Custodian (i) as part of its recognized business, custodies the assets of funds registered under the Investment Company Act, (ii) has a rating for its long-term senior unsecured debt equal to or higher than A- by S&P or A3 by Moody's, and (iii) is on the Lender's list of approved custodians at the time of the replacement of the Custodian (which list shall be provided to the Borrower upon written request and which may be updated at the Lender's sole discretion from time to time) or (B) the Lender shall have provided, at its sole discretion, its prior consent.

Section 7.10 <u>ERISA</u>. The Borrower will not have any liability in respect of any Employee Plan or Multiemployer Plan which could reasonably be expected to result in a Material Adverse Effect. The Borrower's underlying assets will not constitute Plan Assets.

Section 7.11 <u>Change of Name, Corporate Structure or Chief Executive or Registered Office</u>. The Borrower will not change its name or its jurisdiction of formation unless (x) the Borrower shall have given the Lender not less than thirty (30) days' prior notice thereof and (y) promptly in connection therewith, all filings have been made under the Uniform Commercial Code, changes to the titling and descriptions of the Collateral Accounts in the Transaction Documents and on the Custodian's books and records or otherwise that are required in order for the Lender to continue at all times following such change to have a valid, legal and perfected security interest in all the Collateral.

Section 7.12 <u>Custody Agreement</u>. The Borrower will not (i) amend or waive any term of the Custody Agreement which could reasonably be expected to have a material adverse effect on the Collateral or on the Lender's rights in respect thereof or (ii) terminate, or allow the termination of, the Custody Agreement.

Section 7.13 <u>Regulations T, U and X</u>. The Borrower shall not use the proceeds of any Loan for purposes which would violate any provision of Regulation T, Regulation U or Regulation X.

Section 7.14 <u>Accounts.</u> The Borrower will not deposit or credit any Collateral to any bank, deposit or securities account or any other similar accounts other than the Collateral Accounts. In the event an obligor of any asset comprising the Collateral pays proceeds of such asset to an account other than the Collateral Accounts, the Borrower shall promptly cause such proceeds to be transferred to the Collateral Accounts and shall use commercially reasonable efforts to cause such obligor to pay any further proceeds in respect of such asset to the Collateral Accounts.

**ARTICLE VIII**

**EVENTS OF DEFAULT**

If any of the following events (each, an "**Event of Default**") shall occur and be continuing with respect to the Borrower:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) the Borrower fails to pay (i) any principal of any Loan when the same shall be due and payable in accordance with the terms hereof, unless the Borrower satisfies the Lender that non-payment is due solely to administrative error (whether by the Borrower or a bank involved in wiring the funds to the Lender) and the payment of such amount is made by the Borrower within one (1) Business Day of the earlier of (x) the Borrower's receipt of written notice of such failure or (y) a Responsible Officer of the Borrower having actual knowledge of such failure, or (ii) any interest on the principal amount of any Loan, or any fee or other amount payable under the Transaction Documents, in each case under this clause (ii) within three (3) Business Days after the earlier of (x) the Borrower's receipt of written notice of such failure or (y) a Responsible Officer of the Borrower having actual knowledge of such failure; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) any representation or warranty made or deemed made by the Borrower under this Agreement or any other Transaction Document to which it is a party or which is contained in any certificate, document or financial or other statement (other than financial statements, projections, forward-looking information, general economic data, industry information or information relating to third parties) furnished by or on behalf of the Borrower at any time under or in connection with this Agreement or any other Transaction Document proves to have been incorrect in any material respect when made; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) the Borrower shall fail to perform or observe in any respect any of the covenants set forth in Section 6.1, and such failure continues unremedied, in the case of a breach of the covenant set forth in Section 6.1(f), for one (1) Business Day after written notice thereof shall have been given to the Borrower by the Lender, and in the case of a breach of any other covenant set forth in Section 6.1, for two (2) Business Days after written notice thereof shall have been given to the Borrower by the Lender;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) the Borrower shall fail to perform or observe in any respect any of the covenants set forth in Article VI (Affirmative Covenants) (other than Sections 6.1, 6.7 and 6.10) or Article VII (Negative Covenants) herein or Section 6.1 of the Security Agreement, and such default continues unremedied beyond the applicable cure period, if any, specified in such covenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) the Collateral shall fail to satisfy any of the Portfolio Requirements and such default continues unremedied for a period of three (3) Business Days after written notice thereof shall have been given to the Borrower by the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) the Borrower defaults in the observance or performance of any of the Financial Covenants and such default is not cured within any cure period set forth in Section 6.4(b) for such Financial Covenant; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) the Borrower defaults in the observance or performance of any covenant or agreement set forth in any Transaction Document not specified elsewhere in this Article VIII and, if reasonably capable of being cured, such default continues unremedied for ten (10) Business Days after the earlier of the date on which (i) any Responsible Officer of the Borrower has actual knowledge of such failure or (ii) written notice thereof shall have been given to the Borrower by the Lender; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) this Agreement or any other Transaction Document ceases to be valid and binding on or enforceable in any material respect against the Borrower other than (i) as a result of any action taken or omitted to be taken by the Lender (ii) as expressly permitted hereunder or thereunder or (iii) after satisfaction in full of all of Borrower's obligations hereunder and thereunder, or the Borrower or Investment Adviser in writing disaffirms, disclaims, repudiates or rejects, in whole or in part, this Agreement, any other Transaction Document or any obligation thereunder; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) any default, event of default or other similar event or condition shall occur in respect of Borrower under any agreement governing any Indebtedness of Borrower which results in the acceleration of the maturity of any Indebtedness of the Borrower in an aggregate principal amount equal to or in excess of 3% of the Borrower's then-current net asset value before its stated maturity; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) there is entered against the Borrower (i) a final judgment or order for the payment of money in an aggregate amount (as to all such judgments and orders) exceeding an amount equal to or in excess of 3% of the Borrower's then-current net asset value (to the extent not covered by independent third-party insurance as to which the insurer has been notified of such judgment or order and has not denied or failed to acknowledge coverage), or (ii) a non-monetary final judgment or order that, either individually or in the aggregate, has or could reasonably be expected to have a Material Adverse Effect and, in either case, (A) enforcement proceedings are commenced by any creditor upon such judgment or order, or (B) there is a period of 30 consecutive days during which a stay of enforcement of such judgment, by reason of a pending appeal or otherwise, is not in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k) the Borrower, Investment Adviser (unless replaced in accordance with this Agreement), or Custodian (unless all obligations are repaid within three (3) Business Days) (1) is dissolved; (2) becomes insolvent or is unable to pay its debts or fails or admits in writing by a Responsible Officer its inability generally to pay its debts as they become due; (3) makes a general assignment, arrangement or composition with or for the benefit of its creditors; (4)(A) institutes or has instituted against it, by a regulator, supervisor or any similar official with primary insolvency, rehabilitative or regulatory jurisdiction over it in the jurisdiction of its incorporation or organization or the jurisdiction of its head or home office, a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation by it or such regulator, supervisor or similar official, or (B) has instituted against it a proceeding seeking a judgment of insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law or other similar law affecting creditors' rights, or a petition is presented for its winding-up or liquidation, and such proceeding or petition is instituted or presented by a person or entity not described in clause 4(A) above and either (I) results in a judgment of insolvency or bankruptcy or the entry of an order for relief or the making of an order for its winding-up or liquidation or (II) is not dismissed, discharged, stayed or restrained in each case within forty-five (45) days of the institution or presentation thereof; (5) has a resolution passed for its winding-up, official management or liquidation; (6) seeks or becomes subject to the appointment of an administrator, provisional liquidator, conservator, receiver, trustee, custodian or other similar official for it or for all or substantially all its assets; (7) has a secured party take possession of all or substantially all its assets or has a distress, execution, attachment, sequestration or other legal process levied, enforced or sued on or against all or substantially all its assets and such secured party maintains possession, or any such process is not dismissed, discharged, stayed or restrained, in each case within forty-five (45) days thereafter; (8) causes or is subject to any event with respect to it which, under the applicable laws of any jurisdiction, has an analogous effect to any of the events specified in clauses (1) to (7) above (inclusive); or (9) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the foregoing acts; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l) the investment advisory agreement with the Investment Adviser which is in effect on the date hereof relating to the Borrower terminates, unless replaced with an investment advisory agreement with a Control Affiliate of the Investment Adviser, or (ii) the Investment Adviser ceases to serve as the investment adviser with respect to the Borrower, unless the successor thereto is a Control Affiliate of the Investment Adviser; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m) the Custodian ceases to serve as the custodian for the Borrower's assets and is not immediately replaced with a successor custodian in accordance with Section 7.9; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n) the Lien created pursuant to the Security Agreement shall at any time fail or cease for any reason to constitute a valid, perfected and (subject to Permitted Liens) first priority Lien on any portion of the Collateral purported to be subject thereto, securing the obligations purported to be secured thereby, or the Borrower shall so assert in writing; in each case, absent the acts or omissions of the Lender.

then, and in any such event, (i) if such event is an Event of Default specified in clause (k) with respect to the Borrower, the Commitment shall automatically be terminated forthwith and the Principal Outstanding Amount (with accrued interest thereon), the full unpaid amount of the Unused Commitment Fee and all other amounts owing under this Agreement and the Notes (if any) shall become due and payable immediately and (ii) if such event is any other Event of Default, the Lender may, by notice to the Borrower, declare the Commitment terminated forthwith and the Principal Outstanding Amounts (with accrued interest thereon), the full accrued and unpaid amount of the Unused Commitment Fee and all other accrued fees and amounts owing by the Borrower under this Agreement and any other Transaction Document to be due and payable, whereupon the same shall immediately become due and payable. Except as expressly provided in this Article VIII, presentment, demand, protest and all other notices of any kind are hereby expressly waived by the Borrower.

**ARTICLE IX**

**MISCELLANEOUS**

Section 9.1 <u>Amendments and Waivers</u>. Neither this Agreement nor any Notes nor any terms hereof or thereof may be amended, supplemented, modified or waived except pursuant to an agreement or agreements in writing entered into by the Borrower and the Lender. In the case of any waiver, the Borrower and the Lender shall be restored to their former position and rights hereunder, and any Default or Event of Default waived shall be deemed to be cured and not continuing but no such waiver shall extend to any subsequent or other Default or Event of Default, or impair any right consequent thereon.

Section 9.2 <u>Notices</u>. All notices, requests and demands to or upon the respective parties hereto to be effective shall be in writing (including by fax transmission) and, unless otherwise expressly provided herein, shall be deemed to have been duly given or made (1) in the case of delivery by courier, when delivered or (2) in the case of delivery by fax, when sent and receipt has been confirmed, addressed as follows:

If to the Borrower, to it at:

Saba Capital Management, LP <br> 405 Lexington Avenue, 58<sup>th</sup> Floor <br> New York, NY 10174

Attention: Michael LaCorte

Email: <u>operations@sabacapital.com</u>; Michael.lacorte@sabacapital.com

with a copy of notices of default to:

Saba Capital Management, LP <br> 405 Lexington Avenue, 58<sup>th</sup> Floor <br> New York, NY 10174

Attention: Michael D'Angelo

Email: Michael.dangelo@sabacapital.com; <br> legal_compliance@sabacapital.com

If to the Lender, to it at:

The Toronto-Dominion Bank <br> c/o TD Securities (USA) LLC <br> 31 West 52nd Street, 20<sup>th</sup> Floor <br> New York, NY 10019

Attention of: Managing Director, Global Counterparty Credit <br> E-Mail Address: <u>TDUSA-FundFinancing@tdsecurities.com;</u>

<u>TDSINotices@tdsecurities.com</u>; <u>TDPS-FundFinancing@tdsecurities.com</u>; <br> CMRM-40ACT@tdsecurities.com

with a copy to:

The Toronto-Dominion Bank <br> c/o TD Securities (USA) LLC <br> Attention of: Mark Quaglia <br> 31 West 52nd Street, 9th Floor <br> New York, NY 10019

E-Mail Address: <u>Mark.Quaglia@tdsecurities.com</u>

<u>provided</u> that any notice, request or demand to or upon the Lender pursuant to Section 2.2 or Section 2.4 shall not be effective until received. Any party may from time to time change its address for notices by delivering notice to the other party hereto in the manner provided in this Section 9.2.

Section 9.3 <u>No Waiver; Cumulative Remedies</u>. (a) No failure to exercise and no delay in exercising any right, remedy, power or privilege hereunder shall operate as a waiver thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) No single or partial exercise of any right, remedy, power or privilege hereunder shall preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The rights, remedies, powers and privileges herein provided are cumulative and not exclusive of any rights, remedies, powers and privileges provided by law.

Section 9.4 <u>Survival of Representations and Warranties.</u> All representations and warranties made hereunder and in any document, certificate or statement delivered pursuant hereto or in connection herewith shall survive the execution and delivery of this Agreement and the funding of any Loans hereunder.

Section 9.5 <u>Payment of Expenses; Indemnity</u>. The Borrower agrees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) to pay or reimburse the Lender for all reasonable and documented costs and expenses (including reasonably and invoiced fees, charges and disbursements of external legal counsel) incurred in connection with (i) the preparation, negotiation and administration of this Agreement and any other Transaction Document and (ii) any amendments, modifications or waivers of the provisions hereof or thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) to pay or reimburse the Lender and its Affiliates and their respective officers, directors, employees, and agents (collectively, the "**Indemnitees**") for all reasonable and documented costs and expenses (including reasonable and invoiced fees, charges and disbursements of external legal counsel) incurred in connection with (i) the enforcement or preservation by the Lender (including, without limitation, voluntary or involuntary debt reschedulings, forbearances and waivers) of any of its rights under this Agreement and the other Transaction Documents and (ii) the exercise of its rights under the Security Agreement against the Borrower or in respect of the Collateral including, without limitation, all expenses of retaking, holding, redeeming, preparing for sale, selling or enforcing any Collateral; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) to pay, indemnify and hold the Indemnitees harmless from and against any and all other liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind or nature whatsoever with respect to the execution, delivery, enforcement, performance and administration of, or in any other way arising out of or relating to this Agreement and any other Transaction Document (subject to any applicable limitation in Section 9.5(a) above), any violation or noncompliance by the Borrower with or liability under any Requirement of Law or any orders, requirements or demands of any Governmental Authority related thereto or any action taken or omitted to be taken by the Lender with respect to any of the foregoing; in each case, arising out of or relating to this Agreement and any other Transaction Document (including any use of the proceeds of any Loan) (all the foregoing, collectively, the "**Indemnified Liabilities**"); <u>provided</u> that the Borrower shall have no obligation hereunder to the Indemnitees with respect to Indemnified Liabilities that a court of competent jurisdiction by final and non-appealable judgment determines to have resulted from the gross negligence or willful misconduct of any Indemnitee.

Any amount due under this Section 9.5 shall be payable within thirty (30) days after receipt by the Borrower of a reasonably detailed written demand therefor. This Section 9.5 shall not apply with respect to Taxes other than any Taxes that represent losses, claims, damages, etc. arising from any non-Tax claim. The agreements in this Section 9.5 shall survive the termination of this Agreement and the payment of the Loans and all other amounts payable hereunder.

Section 9.6 <u>Successors and Assigns</u>. (a) The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns permitted hereby, except that the Borrower and Lender may not assign or otherwise transfer any of its rights or obligations hereunder without the prior written consent of the other party (and any attempted assignment or transfer by the Borrower or Lender without such consent shall be null and void). Notwithstanding the foregoing, Lender may assign, pledge, transfer or participate its rights hereunder to any Federal Reserve Bank or assign or participate its rights hereunder to any other person or entity, <u>provided</u>, <u>however</u>, that (i) no assignment, pledge, transfer or participation to a Federal Reserve Bank shall release the Lender from its obligations hereunder, (ii) an assignment, pledge or transfer to another person or entity shall require the Borrower's prior written consent so long as no Event of Default has occurred and is continuing, (iii) no person or entity taking a participation interest in the Borrower's obligations hereunder, without the consent of the Borrower (not to be unreasonably withheld), shall have any rights with respect to such participation other than the right to vote on changes in interest, fees, Commitment Amount, principal payments and any advance rate described herein, and the rights specified in Section 9.6(c) and (iv) in connection with any participation, Borrower shall continue to deal solely and directly with Lender in connection with Lender's rights and obligations hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) The Toronto-Dominion Bank, New York Branch or its designee, acting solely for this purpose as an agent of the Borrower, shall maintain at one of its offices in the United States a register for the recordation of the names and addresses of the Lender, and the Commitments of, and principal amounts (and stated interest) of the Loans owing to, the Lender pursuant to the terms hereof from time to time (the "**Register**"). The entries in the Register shall be conclusive absent manifest error, and the Borrower and the Lender shall treat each Person whose name is recorded in the Register pursuant to the terms hereof as a Lender hereunder for all purposes of this Agreement. The Register shall be available for inspection by the Borrower and the Lender, at any reasonable time and from time to time upon reasonable prior notice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) The Borrower agrees that each participant of any rights hereunder shall be entitled to the benefits of Sections 2.12 and 2.13 (subject to the requirements and limitations therein, including the requirements under Section 2.13(f) (it being understood that the documentation required under Section 2.13(f) shall be delivered to the participating Lender)) to the same extent as if it were a Lender and had acquired its interest by assignment; <u>provided</u> that such participant shall not be entitled to receive any greater payment under Sections 2.12 and 2.13, with respect to any participation, than its participating Lender would have been entitled to receive, except to the extent such entitlement to receive a greater payment results from a change in applicable law that occurs after the participant acquired the applicable participation. To the extent permitted by law, each participant also shall be entitled to the benefits of Section 9.7 as though it were a Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) If the Lender sells a participation of any rights hereunder, the Lender shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated interest) of each participant's interest in the Loans or other obligations under the Transaction Documents (the "**Participant Register**"); <u>provided</u> that the Lender shall not have any obligation to disclose all or any portion of the Participant Register (including the identity of any participant or any information relating to a participant's interest in any obligations under any Transaction Document) to any Person except to the extent that such disclosure is necessary to establish that such obligation is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. The entries in the Participant Register shall be conclusive absent manifest error, and the Lender shall treat each Person whose name is recorded in the Participant Register as the owner of such participation for all purposes of this Agreement notwithstanding any notice to the contrary.

Section 9.7 <u>Set-Off; Authorization to Debit from Accounts</u>. (a) In addition to any rights and remedies of the Lender provided by law, during the continuance of an Event of Default in accordance with the terms hereof, the Lender shall have the right, without prior notice to the Borrower, any such notice being expressly waived by the Borrower to the extent permitted by applicable law, to set-off and appropriate and apply any amount due and payable by the Borrower hereunder or under the Notes (if any) (whether at the stated maturity, by acceleration or otherwise) against any and all deposits (general or special, time or demand, provisional or final), in any currency, and any other credits, Indebtedness or claims, in any currency, in each case whether direct or indirect, absolute or contingent, matured or unmatured, at any time held or owing by the Lender or any branch or agency thereof to or for the credit or the account of the Borrower. The Lender agrees promptly to notify the Borrower after any such set-off and application made by the Lender; <u>provided</u> that failure to give such notice shall not affect the validity of such set-off and application.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) In addition to any rights and remedies of the Lender provided by law, during the continuance of an Event of Default, the Lender shall have the right, without prior notice to the Borrower, any such notice hereby being expressly waived by the Borrower, to debit at any time (regardless of the availability of funds) all amounts due and payable by the Borrower under this Agreement from any account (in any currency) the Borrower maintains with the Lender or any branch or agency thereof; <u>provided</u> that any such debit (or, as the case may be, overdrawing) of any such account shall not constitute a novation or amendment of the obligations of the Borrower under this Agreement nor prejudice any other rights or remedies of the Lender.

Section 9.8 <u>Counterparts</u>. This Agreement may be executed by one or more of the parties hereto on any number of separate counterparts, and all of said counterparts taken together shall be deemed to constitute one and the same instrument. Delivery of an executed signature page of this Agreement by email or facsimile transmission shall be effective as delivery of a manually executed counterpart hereof. A set of the copies of this Agreement signed by all the parties shall be lodged with the Borrower and the Lender.

Section 9.9 <u>Severability</u>. Any provision of this Agreement which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

Section 9.10 <u>Integration</u>. This Agreement represents the agreement of the parties hereto with respect to the subject matter hereof, and there are no promises, undertakings, representations or warranties by the Borrower or the Lender relative to the subject matter hereof not expressly set forth or referred to herein.

Section 9.11 <u>Governing Law</u>. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

Section 9.12 <u>Submission to Jurisdiction; Waivers</u>. Each of the Borrower and the Lender hereby irrevocably and unconditionally:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) submits for itself and its property in any legal action or proceeding relating to or arising out of this Agreement, or the conduct of any party with respect thereto, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of the State of New York, the courts of the United States of America for the Southern District of New York, and appellate courts from any thereof;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) consents that any such action or proceeding may be brought in such courts and waives to the fullest extent permitted by law any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) agrees that nothing herein shall affect the right to effect service of process in any manner permitted by law or shall limit the right to sue in any other jurisdiction;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) agrees that, to the fullest extent permitted by applicable law, a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) waives, to the maximum extent not prohibited by applicable law, any right it may have to claim or recover in any legal action or proceeding referred to in this Section 9.12 any special, exemplary, punitive or consequential damages; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) to the extent that it has or hereafter may acquire any immunity (sovereign or otherwise) from any legal action, suit or proceeding, from the jurisdiction of any court or from set-off or any legal process (whether service or notice, attachment prior to judgment, attachment in aid of execution of judgment, execution of judgment or otherwise) with respect to itself or any of its property, waives and agrees not to plead or claim such immunity in respect of its obligations under this Agreement and the other Transaction Documents to which it is a party.

Section 9.13 <u>Judgment Currency</u>. The obligations of the Borrower hereunder and in respect of the Notes due to the Lender, if any, shall, notwithstanding any judgment in a currency (the "**Judgment Currency**") other than Dollars, be discharged only to the extent that on the Business Day following receipt by such party or such holder (as the case may be) of any sum adjudged to be so due in the Judgment Currency, such party or such holder (as the case may be) may in a commercially reasonable manner purchase Dollars with the Judgment Currency. If the amount of Dollars so purchased is less than the sum originally due to such party or such holder (as the case may be) in Dollars, the Borrower agrees, as a separate obligation and notwithstanding any such judgment, to indemnify such party or such holder (as the case may be) against such loss promptly upon receipt of a reasonably detailed written demand therefore, <u>provided</u> that the Borrower shall have no obligation hereunder with respect to the gross negligence or willful misconduct of such party or holder (as the case may be). If the amount of Dollars so purchased exceeds the sum originally due to such party or such holder (as the case may be), such party or such holder (as the case may be), agrees to remit such excess to the Borrower.

Section 9.14 <u>Acknowledgements</u>. The Borrower hereby acknowledges that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) it has been advised by counsel in the negotiation, execution and delivery of this Agreement and the other Transaction Documents to which it is a party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) the Lender has no fiduciary relationship to the Borrower, and the relationship established pursuant to the Transaction Documents between the Lender, on the one hand, and the Borrower, on the other hand, is solely that of debtor and creditor; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) no joint venture or joint transaction exists between the Borrower and the Lender.

Section 9.15 <u>Waivers of Jury Trial</u>. THE BORROWER AND THE LENDER HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVE TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING TO THIS AGREEMENT AND FOR ANY COUNTERCLAIM THEREIN.

Section 9.16 <u>Confidentiality</u>. Each party hereto expects to disclose (whether directly or through its agents) to each other party Confidential Information in connection with the transaction contemplated by the Transaction Documents. Each party hereto agrees to prevent disclosure and maintain the confidentiality of all such Confidential Information; <u>provided</u> that, disclosure of Confidential Information (a) on a confidential basis to its affiliates in connection with the performance of the transaction contemplated by the Transaction Documents, (b) on a confidential basis to a party's or its affiliate's professional representatives and/or advisors, (c) that is otherwise legally required to be disclosed (provided that such party shall, where reasonably practicable and legally permissible, give prior written notice of such disclosure to the extent lawfully permitted to do so) or (d) that is requested by a regulatory, self-regulatory or supervisory authority, shall be permitted. Each party hereto agrees to appropriately instruct employees and others who may be accorded access to such information by it and shall not use the same for any purpose other than in connection with the transaction contemplated by the Transaction Documents.

Confidential Information shall not include any information that (a) is or becomes publicly available through no act or omission of the recipient, (b) is publicly disclosed by its proprietor, (c) is otherwise lawfully obtained from third parties (who are not acting as agents of the recipient) and who are not known after reasonable inquiry to lack authority to possess and disclose the same, (d) is independently developed by the recipient in a manner that can be shown not to have used the information received, (e) is known by the recipient on the Closing Date other than by reason of discussions with or disclosures by the parties to this Agreement in negotiating this Agreement, subject to the proviso in subclause (f) below, or (f) is or becomes known as a result of another transaction between the parties hereto, but information referred to in this subclause (f) shall be subject to any limitations imposed on its use and disclosure by that transaction.

Section 9.17 <u>Conflicts Disclosure</u>. The Borrower acknowledges and agrees that the Lender and its Affiliates may accept deposits from, lend money to and generally engage in any kind of business with the Borrower or an Affiliate thereof as if it were not a Lender hereunder. The Borrower further acknowledges and agrees that the Lender and its affiliates may have interests with respect to, provide services to and/or enter into transactions with the obligors of the assets constituting Collateral and that in performing their obligations or exercising their rights with respect to such assets and obligors, and in taking actions or making any decisions as an investor, service provider, creditor, trading counterparty or similar role to such an obligor, the Lender and its Affiliates may have interests that conflict with those of the Borrower and may take actions that could adversely affect the Borrower's interests in the Collateral. For the avoidance of doubt, the Borrower acknowledges and agrees that the Lender and its Affiliates shall be under no obligation to take into account the Borrower's interests as an investor in such assets or as a borrower or pledgor under the Transaction Documents.

Section 9.18 <u>Anti-Money Laundering</u>. The Borrower hereby acknowledges and agrees that: (i) to help the government fight the funding of terrorism and money laundering activities, federal law requires The Toronto-Dominion Bank, New York Branch to obtain, verify and record information that identifies the Borrower. The Borrower shall promptly provide its name, address, tax identification number, date of birth (as applicable) and other information, including certain identifying documents, requested by the Lender which will allow the Lender to identify the Borrower and (ii) the Borrower will promptly provide any authorizations necessary for the Lender to obtain or verify certain information about the Borrower, in connection with clause (i) of this Section 9.18, from third parties. Any failure to fully comply with, or consent to, such requirements may lead to failure to establish, or the termination of this Agreement.

Section 9.19 <u>Limitation on Liability</u>. The Borrower's declaration of trust is on file with the Secretary of the Commonwealth of Massachusetts. This Agreement and the other Transaction Documents to which the Borrower is a party are executed on behalf of the Borrower by the Borrower's officers as officers and not individually and the obligations imposed upon the Borrower by this Agreement or by any other Transaction Document to which the Borrower is a party or other statements delivered in connection therewith are not binding upon any of the Borrower's trustees, officers, directors, shareholders, beneficiaries or other equity holders individually but are binding only upon the assets and property of the Borrower.

Section 9.20 <u>Acknowledgement Regarding Any Supported QFCs.</u>

To the extent any of the Transaction Documents are a QFC (such Transaction Documents, the "**QFC Transaction Documents**"), or provide support, through a guarantee or otherwise, for any agreement or instrument that is a QFC (such support, "**QFC Credit Support**" and, each such QFC, a "**Supported QFC**"), the parties acknowledge and agree as follows with respect to the resolution power of the Federal Deposit Insurance Corporation under the Federal Deposit Insurance Act and Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act (together with the regulations promulgated thereunder, the "**U.S. Special Resolution Regimes**") in respect of such QFC Transaction Documents, Supported QFC and QFC Credit Support (with the provisions below applicable notwithstanding that the Transaction Documents and any Supported QFC may in fact be stated to be governed by the laws of the State of New York and/or of the United States or any other state of the United States):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Recognition of U.S. Special Resolution Regimes. In the event that a Covered Entity that is party to a QFC Transaction Document or a Supported QFC (as applicable) (each, a "**Covered Party**") becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer of such QFC Transaction Document and/or Supported QFC and the benefit of such QFC Credit Support (as applicable) (and any interest and obligation in or under such QFC Transaction Documents or Supported QFC and such QFC Credit Support (as applicable), and any rights in property securing such QFC Transaction Document, Supported QFC or such QFC Credit Support) from such Covered Party will be effective to the same extent as the transfer would be effective under the U.S. Special Resolution Regime if the QFC Transaction Document and/or Supported QFC and such QFC Credit Support (and any such interest, obligation and rights in property) were governed by the laws of the United States or a state of the United States. In the event a Covered Party or a BHC Act Affiliate of a Covered Party becomes subject to a proceeding under a U.S. Special Resolution Regime, Default Rights under the Transaction Documents that might otherwise apply to such QFC Transaction Document, Supported QFC or any QFC Credit Support that may be exercised against such Covered Party are permitted to be exercised to no greater extent than such Default Rights could be exercised under the U.S. Special Resolution Regime if the Supported QFC and the QFC Transaction Documents were governed by the laws of the United States or a state of the United States. Without limitation of the foregoing, it is understood and agreed that rights and remedies of the parties with respect to the Lender, to the extent that it defaulted on its obligations hereunder, shall in no event affect the rights of any Covered Party with respect to a QFC Transaction Document, Supported QFC or any QFC Credit Support (as applicable).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Definitions. As used in this Section 9.20, the following terms have the following meanings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) "**BHC Act Affiliate**" of a party means an "affiliate" (as such term is defined under, and interpreted in accordance with, 12 U.S.C. 1841(k)) of such party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) "**Covered Entity**" means any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) a "covered entity" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 252.82(b);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) a "covered bank" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) a "covered FSI" as that term is defined in, and interpreted in accordance with, 12 C.F.R. § 382.2(b).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) "**Default Right**" has the meaning assigned to that term in, and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1, as applicable.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) "**QFC**" has the meaning assigned to the term "qualified financial contract" in, and shall be interpreted in accordance with, 12 U.S.C. 5390(c)(8)(D).

---

| | |
|:---|:---|
| Borrower: | Borrower: |
| **SABA CAPITAL INCOME & OPPORTUNITIES FUND** | **SABA CAPITAL INCOME & OPPORTUNITIES FUND** |
| By: |  |
|  | Name: |
|  | Title: |

---

---

| | |
|:---|:---|
| Lender: | Lender: |
| **THE TORONTO-DOMINION BANK, NEW YORK BRANCH** | **THE TORONTO-DOMINION BANK, NEW YORK BRANCH** |
| By: |  |
|  | Name: |
|  | Title: |

---

**EXHIBIT A**

**FORM OF LOAN NOTICE**

**[Borrower Letterhead]**

[DATE]

The Toronto-Dominion Bank, New York Branch <br> c/o TD Securities (USA) LLC

31 West 52nd Street, 20<sup>th</sup> Floor <br> New York, NY 10019

Attention of: Managing Director, Global Counterparty Credit

E-Mail Address: <u>TDUSA-FundFinancing@tdsecurities.com; TDSINotices@tdsecurities.com</u>; <u>TDPS-FundFinancing@tdsecurities.com</u>; CMRM-40ACT@tdsecurities.com

with a copy to:

The Toronto-Dominion Bank <br> c/o TD Securities (USA) LLC <br> Attention of: Mark Quaglia <br> 31 West 52nd Street, 9th Floor <br> New York, NY 10019

E-Mail Address: <u>Mark.Quaglia@tdsecurities.com</u>

**LOAN NOTICE**

Ladies and Gentlemen:

Reference is made to the Credit Agreement dated as of July 20, 2021 (as amended, the "**Credit Agreement**"), between **SABA CAPITAL INCOME & OPPORTUNITIES FUND** (the "**Borrower**") and The Toronto-Dominion Bank, New York Branch (the "**Lender**"). Capitalized terms used but not defined herein shall have the respective meanings given thereto in the Credit Agreement.

Pursuant to Section 2.2 of the Credit Agreement, the Borrower hereby requests a Loan as follows:

(i) The Available Commitment as of the date hereof is USD [●].

(ii) The Borrowing Base Ratio as of the date hereof is [●].

(iii) The Aggregate Borrowing Percentage as of the date hereof is [●].

(iv) The Loan Principal Amount requested hereby is USD [●].

Exh. A-1-1

(v) The Disbursement Date for the Loan requested hereby is [●], which is a Business Day.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) The Loan is a [Benchmark Loan] [Same Day Loan].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) If the Loan is a Same Day Loan the Loan Conversion
Date (on which the Same Day Loan will automatically convert to a Benchmark Loan) of the Loan is three (3) Business Days following
the Disbursement Date on which the Same Day Loan was initially made.

(viii) The Principal Outstanding Amount before giving effect to the Loan requested hereby is USD [●], and the Principal Outstanding Amount after giving effect to the Loan requested hereby would be USD [●].

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) After giving effect to the Loan requested hereby, the Aggregate Borrowing
Percentage will not exceed the Maximum Aggregate Borrowing Percentage and (ii) the Borrowing Base Ratio will not be less than the
Minimum Borrowing Base Ratio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) The undersigned hereby certifies to the Lender
that (a) each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party
will be true and correct in all material respects on the Disbursement Date, other than any such representations or warranties that,
by their terms, refer to a specific date other than such Disbursement Date, in which case as of such specific date, (b) no Default
or Event of Default will occur and be continuing (x) on such Disbursement Date or (y) immediately after giving effect to the Loan
and (c)
there has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) Wiring
instructions in respect of the Loan requested hereby are as follows:

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| | |
|:---|:---|
| &nbsp;&nbsp;The Bank of New York Mellon | &nbsp;&nbsp;The Bank of New York Mellon |
| &nbsp;&nbsp;ABA # | &nbsp;&nbsp;021000018 |
| &nbsp;&nbsp;DDA# | &nbsp;&nbsp;8900487623 |
| &nbsp;&nbsp;Fund Name: | &nbsp;&nbsp;Saba Capital Inc and Opp Fd |
| &nbsp;&nbsp;Ref | &nbsp;&nbsp;9923288400 |

---

Exh. A-1-2

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| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: |  |
|  | Name: |
|  | Title: |
|  | Tel: |

---

Exh. A-1-3

**EXHIBIT B**

**FORM OF PROMISSORY NOTE**

Maximum Principal Outstanding Amount: USD 125,000,000, as may be reduced pursuant to the Credit Agreement (as defined below)

New York, New York, [DATE]

FOR VALUE RECEIVED, Saba Capital Income & Opportunities Fund, a Massachusetts business trust, (the "**Borrower**"), promises to pay to The Toronto-Dominion Bank, New York Branch (the "**Lender**") (i) the Principal Outstanding Amount plus (ii) accrued interest thereon at the rates provided in the Credit Agreement, in immediately available funds at the designated office of the Lender, in the amounts and on the dates set forth in the Credit Agreement (as defined below). The accrued interest on the Note shall be payable together with the principal on the Note at such times and on such terms as provided in this Note and the Credit Agreement.

The Lender shall, and is hereby authorized to, record the date and amount of each Loan and the date and amount of each principal repayment hereunder on the Schedule of Loans and Principal Repayments annexed hereto and any such recordation shall constitute prima facie evidence of the accuracy of the amount so recorded; <u>provided</u> that the failure of the Lender to make such recordation (or any error in such recordation) shall not affect the obligations of the Borrower hereunder or under the Credit Agreement.

This Note is a promissory note (a "**Note**") issued pursuant to, and is entitled to the benefits of, the Credit Agreement, dated as of July 20, 2021 (as amended, modified or otherwise supplemented from time to time, the "**Credit Agreement**"; capitalized terms used but not defined herein shall have the respective meanings given thereto in the Credit Agreement) by and among the Borrower and the Lender, to which reference is hereby made for a statement of the terms and conditions governing this Note, including the terms and conditions under which this Note may be prepaid or its maturity date accelerated.

The Borrower hereby waives presentment, demand, protest or notice of any kind in connection with this Note.

This Note is executed on behalf of the Borrower by the Borrower's officers as officers and not individually and the obligations imposed upon the Borrower by this Note is not binding upon any of the Borrower's trustees, officers, directors, shareholders, beneficiaries or other equity holders individually but are binding only upon the assets and property of the Borrower.

**THIS NOTE AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES UNDER THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.**

Exh. B-1

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| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: |  |
|  | Name: |
|  | Title: |

---

Exh. B-2

ANNEX

Schedule of Loans and Principal Repayments

---

| | |
|:---|:---|
| **Date of Loan or Repayment** | **Amount** |
|  | USD_________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |
|  | USD _________________ |

---

Exh. B-3

**EXHIBIT C-1**

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is made to the Credit Agreement dated as of July 20, 2021 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") between Saba Capital Income & Opportunities Fund, a Massachusetts business trust, (the "Borrower"); and The Toronto-Dominion Bank, New York Branch (the "Lender"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Credit Agreement.

Pursuant to the provisions of Section 2.13 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Borrower with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and (2) the undersigned shall have at all times furnished the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

---

| | |
|:---|:---|
| SABA CAPITAL INCOME & OPPORTUNITIES FUND | SABA CAPITAL INCOME & OPPORTUNITIES FUND |
| By: |  |
|  | Name: |
|  | Title: |
|  | Date: ________ __, 20[ ] |

---

Exh. C-1-1

**EXHIBIT C-2**

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Not Partnerships For U.S. Federal Income Tax Purposes)

Reference is made to the Credit Agreement dated as of July 20, 2021 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") between Saba Capital Income & Opportunities Fund, a Massachusetts business trust, (the "Borrower"); and The Toronto-Dominion Bank, New York Branch (the "Lender"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Credit Agreement.

Pursuant to the provisions of Section 2.13 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record and beneficial owner of the participation in respect of which it is providing this certificate, (ii) it is not a bank within the meaning of Section 881(c)(3)(A) of the Code, (iii) it is not a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (iv) it is not a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with a certificate of its non-U.S. Person status on IRS Form W-8BEN or W-8BEN-E, as applicable. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender in writing and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

---

| | |
|:---|:---|
| [NAME OF PARTICIPANT] | [NAME OF PARTICIPANT] |
| By: |  |
|  | Name: |
|  | Title: |
|  | Date: ________ __, 20[ ] |

---

Exh. C-2-1

**EXHIBIT C-3**

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Participants That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is made to the Credit Agreement dated as of July 20, 2021 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") between Saba Capital Income & Opportunities Fund, a Massachusetts business trust, (the "Borrower"); and The Toronto-Dominion Bank, New York Branch (the "Lender"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Credit Agreement.

Pursuant to the provisions of Section 2.13 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the participation in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such participation, (iii) with respect such participation, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished its participating Lender with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W -8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by an IRS Form W -8BEN or W-8BEN-E, as applicable, from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform such Lender and (2) the undersigned shall have at all times furnished such Lender with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

---

| | |
|:---|:---|
| [NAME OF PARTICIPANT] | [NAME OF PARTICIPANT] |
| By: |  |
|  | Name: |
|  | Title: |
|  | Date: ________ __, 20[ ] |

---

Exh. C-3-1

**EXHIBIT C-4**

FORM OF

U.S. TAX COMPLIANCE CERTIFICATE

(For Foreign Lenders That Are Partnerships For U.S. Federal Income Tax Purposes)

Reference is made to the Credit Agreement dated as of July 20, 2021 (as amended, supplemented or otherwise modified from time to time, the "Credit Agreement") between Saba Capital Income & Opportunities Fund, a Massachusetts business trust, (the "Borrower"); and The Toronto-Dominion Bank, New York Branch (the "Lender"). Capitalized terms used but not defined herein have the meanings ascribed to them in the Credit Agreement.

Pursuant to the provisions of Section 2.13 of the Credit Agreement, the undersigned hereby certifies that (i) it is the sole record owner of the Loan(s) (as well as any Note(s) evidencing such Loan(s)) in respect of which it is providing this certificate, (ii) its direct or indirect partners/members are the sole beneficial owners of such Loan(s) (as well as any Note(s) evidencing such Loan(s)), (iii) with respect to the extension of credit pursuant to this Credit Agreement or any other Transaction Document, neither the undersigned nor any of its direct or indirect partners/members is a bank extending credit pursuant to a loan agreement entered into in the ordinary course of its trade or business within the meaning of Section 881(c)(3)(A) of the Code, (iv) none of its direct or indirect partners/members is a ten percent shareholder of the Borrower within the meaning of Section 881(c)(3)(B) of the Code and (v) none of its direct or indirect partners/members is a controlled foreign corporation related to the Borrower as described in Section 881(c)(3)(C) of the Code.

The undersigned has furnished the Borrower with IRS Form W-8IMY accompanied by one of the following forms from each of its partners/members that is claiming the portfolio interest exemption: (i) an IRS Form W-8BEN or W -8BEN-E, as applicable, or (ii) an IRS Form W-8IMY accompanied by an IRS Form W -8BEN or W-8BEN-E, as applicable, from each of such partner's/member's beneficial owners that is claiming the portfolio interest exemption. By executing this certificate, the undersigned agrees that (1) if the information provided on this certificate changes, the undersigned shall promptly so inform the Borrower and (2) the undersigned shall have at all times furnished the Borrower with a properly completed and currently effective certificate in either the calendar year in which each payment is to be made to the undersigned, or in either of the two (2) calendar years preceding such payments.

---

| | |
|:---|:---|
| THE TORONTO-DOMINION BANK, NEW YORK BRANCH | THE TORONTO-DOMINION BANK, NEW YORK BRANCH |
| By: |  |
|  | Name: |
|  | Title: |
|  | Date: ________ __, 20[ ] |

---

Exh. C-4-1

**EXHIBIT D**

**(FORM OF CONTROL AGREEMENT)**

**EXHIBIT E**

**(FORM OF BLOCKED ACCOUNT AGREEMENT)**

**EXHIBIT F**

**(FORM OF SECURITY AGREEMENT)**

**EXHIBIT G**

**INVESTMENT GUIDELINES & PORTFOLIO REQUIREMENTS**

---

| | |
|:---|:---|
| **1** | **<u>Investment Guidelines</u>** |

---

As of any day of determination, the Lender shall first determine which assets fail to qualify as Eligible Assets hereunder. Following the determination of the pool of Eligible Assets on such day, the Lender shall use the aggregate Value of all Eligible Assets (as adjusted for any haircuts) on such day to measure compliance with each investment guideline below. The resulting haircuts for each test below shall be aggregated and subtracted from each asset that failed to comply with the relevant guideline to determine the Adjusted Eligible Asset Value. For the avoidance of doubt, the Lender shall start with the Value of the Eligible Assets when determining compliance with the investment guidelines, and after the application of the first haircut, the Lender shall use the Adjusted Eligible Asset Value when determining compliance with the subsequent investment guidelines. The Adjusted Eligible Asset Value will be used to determine the Asset Advance Amount.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) **Single Issuer Concentration Limit.** No more than 9% of the aggregate Value of the Eligible Assets shall consist of obligations of a single obligor; <u>provided</u> that Cash and Cash Equivalents shall not be subject to such limit. Any amount in excess of such limit shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) **Maximum Issuance Concentration Limit.** The Borrower's investment in any series of any bond or loan issuance shall not consist of more than 10% of the lesser of (i) the notional amount of such bond or loan issuance and (ii) the outstanding amount of such bond or loan issuance. Any amount in excess of such limit shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii) **BICs Industry Group Concentration Limit.** No more than 20% of the aggregate Value of the Eligible Assets (excluding any Eligible Asset that is a Closed-End Fund) shall consist of obligations of or interests in obligors from the same industry group, as determined by the Lender by reference to the Bloomberg industry group classifications set forth on Bloomberg page "Bloomberg Industry Group Classification Systems" ("BICs Industry Group"). Any amounts in excess of such limits shall be assigned a Value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) **Geographic Concentration Limit.** Up to 100% of the aggregate Value of the Eligible Assets may consist of obligations of United States, Canada, and United Kingdom domiciled obligors. No more than 10% of the aggregate Value of the Eligible Assets shall consist of obligations of or interests in obligors domiciled in any individual G10 Country other than the United States, Canada or United Kingdom, and no more than 50% of the aggregate Value of the Eligible Assets shall consist of obligations of or interests in obligors domiciled in G10 Countries other than the United States, Canada or United Kingdom. Notwithstanding the foregoing, up to 5% of the aggregate Value of the Eligible Assets shall be permitted to consist of obligations of or interests in obligors domiciled Luxembourg. The country of domicile shall be based on the Country of Risk classification for each Eligible Asset as defined and published by Bloomberg; provided that, with respect to any Eligible Asset that is a Closed-End Fund, if the Country of Risk classification is not available, the country of domicile for such Closed-End Fund shall be based on the Country of Domicile as defined and published by Bloomberg to determine compliance with the foregoing country requirement. Any amount in excess of such limits shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets. Any obligations of obligors that are domiciled in countries that are not listed in this paragraph (iv) shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets, unless otherwise agreed by the Lender.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) **Minimum Bond and Loan Price.** Any bond that has a price of 65% of par or less shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets. Any loan that has a price of 65% of par or less shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi) **Liquidation Period.** The Liquidation Period of equity securities (excluding SPACs) of a single issuer comprising the Collateral does not equal or exceed five (5) trading days. If, on any day, the Liquidation Period of equity securities (excluding SPACs) of a single issuer comprising the Collateral equals or exceeds five (5) trading days, the current market value thereof will be reduced by the Haircut Percentage specified below for purposes of determining the aggregate Value of the Eligible Assets:

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| | |
|:---|:---|
| **Liquidation Period** | **Haircut Percentage** |
| Less than 5 trading days | 0% |
| 5 – 9.9999 trading days | 20% |
| 10 trading days or more | 100% |

---

where, "<u>Liquidation Period</u>" means, with respect to equity securities comprising the Collateral, an amount equal to the quotient of (i) the number of shares of such equity securities and (ii)100% of the average daily trading volume of such units during the prior 90 trading days on their primary national securities exchange as determined by the Calculation Agent using data published by Bloomberg Professional Service, or another generally recognized source as agreed by the Calculation Agent and the Borrower (rounded to the nearest ten-thousandth). Notwithstanding the preceding sentence, to the extent that the prior 90-day average daily trading volume for such equity securities is unavailable on any day on such source, such average daily trading volume shall be determined by the Calculation Agent in a commercially reasonable manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii) **Reserved**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii) **SPAC Maximum Market Capitalization Limit**. The Borrower's investment in any single SPAC shall not consist of more than 10% of the outstanding market capitalization of such SPAC. Any amount in excess of such limit shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix) **SPAC Premium Cap.** If the price per share of any SPAC is greater than 125% of the initial public offering price, the price in excess of 125% shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x) **Cash and Cash Equivalents**. Cash and Cash Equivalents shall not receive a 0% haircut for the purposes of determining the Adjusted Eligible Asset Value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi) **Advance Rates.** The table below sets forth the "**Advance Rate**" that will be applied to bonds, loans, and securities with specified ratings and unrated assets (after application of the haircuts described above); <u>provided</u> that for purposes of determining the applicable rating, the Lender shall use the lower of the Moody's or S&P rating.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Collateral Type<sup>1</sup>** | &nbsp;&nbsp;**Rating** <br> **(Moody's/S&P)** | &nbsp;&nbsp;**Percentage of** <br> **aggregate Value of** <br> **all Eligible Assets** | &nbsp;&nbsp;**Advance Rate** |
| &nbsp;&nbsp;Closed-End Funds trading at a price per share greater than $0.00 and less than $2.00 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Closed-End Funds trading at a price per share greater than $0.00 and less than $2.00 | &nbsp;&nbsp;N/A | &nbsp;&nbsp;Above 15% | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;Equity Securities trading at a price per share greater than or equal to $2.00. | &nbsp;&nbsp;N/A | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Corporate Bonds | &nbsp;&nbsp;BBB-/Baa3 and above | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;Corporate Bonds | &nbsp;&nbsp;BB-/Ba3 to BB+/Ba1 | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;75% |
| &nbsp;&nbsp;Corporate Bonds | &nbsp;&nbsp;B-/B3 to B+/B1 | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;65% |

---

**<sup>1</sup>** Bonds/Loans that do not have a rating from either S&P or Moody's shall be assigned a value of zero in determining the aggregate Value of the Eligible Assets.

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| | | | |
|:---|:---|:---|:---|
| &nbsp;&nbsp;**Collateral Type<sup>1</sup>** | &nbsp;&nbsp;**Rating** <br> **(Moody's/S&P)** | &nbsp;&nbsp;**Percentage of** <br> **aggregate Value of** <br> **all Eligible Assets** | &nbsp;&nbsp;**Advance Rate** |
|  | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;CB limit 1<sup>2</sup> or below | &nbsp;&nbsp;50% |
|  | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;Above CB limit 1 and equal to or below CB limit 2<sup>3</sup> | &nbsp;&nbsp;50% |
|  | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;Above CB limit 2 | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;First Lien Senior Secured Loans | &nbsp;&nbsp;BBB-/Baa3 and above | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;80% |
| &nbsp;&nbsp;First Lien Senior Secured Loans | &nbsp;&nbsp;BB-/Ba3 to BB+/Ba1 | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;75% |
| &nbsp;&nbsp;First Lien Senior Secured Loans | &nbsp;&nbsp;B-/B3 to B+/B1 | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;65% |
| &nbsp;&nbsp;First Lien Senior Secured Loans | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Second Lien Senior Secured Loans | &nbsp;&nbsp;BBB-/Baa3 and above | &nbsp;&nbsp;Above 0% and less than or equal to 5% | &nbsp;&nbsp;50% |
| &nbsp;&nbsp;Second Lien Senior Secured Loans | &nbsp;&nbsp;B-/B3 and above | &nbsp;&nbsp;Above 5% | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;Second Lien Senior Secured Loans | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;Above 0% | &nbsp;&nbsp;0% |
| &nbsp;&nbsp;All Corporate Bonds and Loans | &nbsp;&nbsp;CCC+/Caa1 or below | &nbsp;&nbsp;Above 15%**<sup>4</sup>** | &nbsp;&nbsp;0% |

---

<sup>2</sup> CB limit 1 equals greater of (i) zero or (ii) 10% minus the percentage of the aggregate Value of the Eligible Assets comprised of first lien senior secured loans rated CCC+/Caa1 or below.

<sup>3</sup> CB limit 2 equals greater of (i) zero or (ii) 15% minus the percentage of the aggregate Value of the Eligible Assets comprised of first lien senior secured loans rated CCC+/Caa1 or below.

**<sup>4</sup>** For purposes of this determination, first lien senior secured loans will be counted first.

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| | |
|:---|:---|
| **2** | **<u>Portfolio Requirements</u>** |

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The Collateral shall at all times satisfy the following requirements (the "**Portfolio Requirements**"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) The portfolio of Eligible Assets shall consist of Eligible Assets that have been issued or entered into by, no fewer than seventy-five (75) unaffiliated obligors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) The portfolio of Eligible Assets shall consist of obligations of obligors from at least four (4) BICs Industry Groups, as determined by the Lender.

**EXHIBIT H**

**BORROWER'S ELIGIBLE LOANS REPORT**

(To be provided in a form mutually acceptable to Borrower and Lender)

**EXHIBIT I**

**BORROWER'S COMPLIANCE CERTIFICATE**

[Insert Date]

The Toronto-Dominion Bank <br> c/o TD Securities (USA) LLC

One Vanderbilt Avenue, 11th Floor <br> New York, NY 10017

Attention of: Managing Director, Global Counterparty Credit

Ladies and Gentlemen:

Reference is hereby made to the Credit Agreement, dated as of July 20, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the *"Credit Agreement"*), between Saba Capital Income & Opportunities Fund, a Massachusetts business trust (the *"Borrower"*) and The Toronto-Dominion Bank, New York Branch. Each term that is defined in the Credit Agreement and not herein defined has the meaning ascribed thereto by the Credit Agreement when used herein.

This Certificate is delivered to you pursuant to Section 6.1(c) of the Credit Agreement.

The undersigned hereby certifies to you as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. I have reviewed the terms of the Credit Agreement and I have made, or have caused to be made under my supervision, a review of the transactions and conditions of the Borrower as of the close of business on **[●], 202[●]** (the *"Notice Time"*);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. As of the Notice Time, the Borrower is in compliance with the Investment Company Act and no event has occurred and is continuing that constitutes a Default or an Event of Default;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. As of the Notice Time, (i) the Aggregate Borrowing Percentage does not exceed the Maximum Aggregate Borrowing Percentage and (ii) the Borrowing Base Ratio is not less than the Minimum Borrowing Base Ratio; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. As of the Notice Time, the Borrower was<u>and each Permitted Subsidiary were</u> in compliance with the limitations on Permitted Indebtedness.

---

| |
|:---|
| **SABA CAPITAL INCOME & OPPORTUNITIES FUND** |
| By: |
| Name: |
| Title: |

---

[Monthly]

**EXHIBIT J**

**FORM OF FACILITY INCREASE REQUEST**

[Insert Date]

The Toronto-Dominion Bank <br> c/o TD Securities (USA) LLC

One Vanderbilt Avenue, 11th Floor <br> New York, NY 10017

Attention of: Managing Director, Global Counterparty Credit

Ladies and Gentlemen:

Reference is hereby made to the Credit Agreement, dated as of July 20, 2021 (as amended, restated, supplemented or otherwise modified from time to time, the *"Credit Agreement"*), between Saba Capital Income & Opportunities Fund, a Massachusetts business trust (the *"Borrower"*) and The Toronto-Dominion Bank, New York Branch. Each term that is defined in the Credit Agreement and not herein defined has the meaning ascribed thereto by the Credit Agreement when used herein.

Borrower hereby requests an increase in the Commitment pursuant to Section 2.14 of the Credit Agreement to $__________ (the "***Facility Increase***"), and that the Facility Increase be effective on or after __________, 20__.

In connection with the Facility Increase requested hereby, Borrower hereby represents, warrants, and certifies to Lender that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) This request is being delivered not less than ten (10) Business Days (or such
lesser number of days agreed by the Lender in its sole and absolute discretion) prior to the date of such Facility Increase;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) On and as of the date hereof and both before and after giving effect to the
Facility Increase, no Default or Event of Default has occurred and is continuing;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) On and as of the date hereof and both before and after giving effect to the Facility Increase,
each of the representations and warranties of the Borrower set forth in the Transaction Documents to which it is a party are true
and correct in all material respects, except those representations and warranties which are expressly specified to be made as of
an earlier date, in which case such representations and warranties are true and correct in all material respects or all respects,
as applicable, on such earlier date; <u>provided</u> that in any representation and warranty that is qualified as to "materiality",
"Material Adverse Effect" or similar language, such representation and warranty is true and correct (after giving effect
to any qualification therein) in all respects;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) On and as of the date hereof and both before and after giving effect to the Facility Increase,
there has been no development or event which has had or could reasonably be expected to have a Material Adverse Effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e) After giving effect to the Facility Increase, (i) the Aggregate Borrowing Percentage will not exceed
the Maximum Aggregate Borrowing Percentage and (ii) the Borrowing Base Ratio will not be less than the Minimum Borrowing Base Ratio;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) The Facility Increase requested herein, at the time of and immediately after giving effect to such
Facility Increase, does not breach any indebtedness limitation set forth in the Borrower's constituent documents or equivalent
governing agreement;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) The resolutions duly adopted by such Borrower's board of trustees and previously delivered
to the Lender authorize the Facility Increase, and such resolutions have not been amended, modified, revoked or rescinded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) Each of the additional conditions precedent specified in Section 2.14 of the Credit Agreement have
been satisfied; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) In the event that between the date hereof and the date of the Facility Increase, (i) any event
should occur which could reasonably be expected to be an Default or Event of Default or have a Material Adverse Effect; or (ii)
any representation, warranty or certification set forth above is inaccurate if made on the proposed date of the Facility Increase,
Borrower shall notify Lender.

---

| |
|:---|
| **SABA CAPITAL INCOME & OPPORTUNITIES FUND** |
| By: |
| Name: |
| Title: |

---

## Ex-99.(L)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (l)**

![](ex99l001.jpg)

90 Park Avenue

New York, NY 10016-1387

212-210-9400 \| Fax: 212-210-9444

---

| | | |
|:---|:---|:---|
| **George Silfen** | **Direct Dial: 212-905-9106** | **Email: George.Silfen@alston.com** |

---

September 18, 2025

Saba Capital Income & Opportunities Fund

405 Lexington Avenue, 58<sup>th</sup> Floor

New York, NY 10174

Re: Opinion of Counsel regarding Saba Capital Income & Opportunities Fund's Registration Statement Filed on Form N-2 under the Securities Act of 1933 (File Nos. <u>333-288532</u>; <u>811-05410</u>)

We have acted as counsel to Saba Capital Income & Opportunities Fund, a Massachusetts business trust (the "Fund"), in connection with the filing of the Fund's Registration Statement, and an amendment thereto (together, the "Registration Statement") with the U.S. Securities and Exchange Commission ("SEC") pursuant to Rule 485(b) under the Securities Act of 1933, as amended (the "1933 Act"), registering 15,000,000 common shares of beneficial interest ("Shares").

You have requested our opinion as to the matters set forth below in connection with the filing of the Registration Statement. In connection with rendering that opinion, we have examined the Registration Statement, the Declaration of Trust, dated December 4, 1987, as amended on August 7, 1989, March 27, 1996, November 11, 1998, October 24, 2000, October 30, 2000, February 9, 2001, February 28, 2002, June 28, 2010, July 11, 2012, April 15, 2014 and May 21, 2021 (the "Declaration of Trust") on file in the office of the Secretary of the Commonwealth of Massachusetts, the Fund's Bylaws, the actions of the Trustees of the Fund that authorize the approval of the foregoing documents, securities matters and the issuance of the Shares, and such other documents as we, in our professional opinion, have deemed necessary or appropriate as a basis for the opinion set forth below. In examining the documents referred to above, we have assumed the following: the genuineness of all signatures, the legal capacity of all natural persons, the authenticity of documents purporting to be originals and the conformity to authentic originals of all documents submitted to us as copies, the truth, accuracy and completeness of all statements regarding matters of fact set forth in all documents submitted to us, and the valid existence of the Fund in good standing under the laws of its jurisdiction of formation. As to questions of fact material to our opinion, we have relied (without investigation or independent confirmation) upon the representations contained in the above-described documents.

For purposes of this opinion letter, we have assumed that all Shares will be offered and sold on the terms, and that the Fund will receive for the sale of such Shares the consideration, set forth in the Registration Statement as in effect at the time of such sale, and that such consideration will be in each case at least equal to the applicable net asset value per Share. In addition, we have assumed that any and all conditions established by resolution of the Trustees of the Fund to the authorization or issuance of the Shares will have been satisfied in full prior to, and in respect of, such issuance. We also assume that appropriate action has been taken to register or qualify the sale of the Shares under any applicable state and federal laws regulating offerings and sales of securities.

Alston & Bird LLP www.alston.com

Atlanta \| Brussels \| Century City \| Charlotte \| Chicago \| Dallas \| London \| Los Angeles \| New York \| Raleigh \| San Francisco \| Silicon Valley \| Washington, D.C.

Saba Capital Income & Opportunities Fund

September 18, 2025

Our opinion, as set forth herein, is based on the facts in existence and the laws in effect on the date hereof and is limited to the federal laws of the United States of America and the Commonwealth of Massachusetts. We express no opinion with respect to any other laws.

Based upon and subject to the foregoing and the qualifications set forth below, we are of the opinion that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. The Shares of the Fund to be issued pursuant to the Registration Statement have been duly authorized for issuance by the Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. When issued and paid for upon the terms provided in the Registration Statement, subject to compliance with the 1933 Act, the Investment Company Act of 1940, as amended, and all other laws relating to the sale of securities, the Shares of the Funds to be issued pursuant to the Registration Statement will be validly issued, fully paid and non-assessable.

The Trust is an entity of the type commonly known as a "Massachusetts business trust." Under Massachusetts law, shareholders could, under certain circumstances, be held personally liable for the obligations of the Fund. However, the Declaration of Trust provides that shareholders shall not be subject to any personal liability for the acts or obligations of the Fund, and also requires that every note, bond, contract, instrument, certificate or undertaking made or issued on behalf of the Fund by the trustees or any trustee, by any officer or officers or otherwise shall give notice to the effect that the obligations of such instrument are not binding on shareholders. The Declaration of Trust provides that in case any shareholder or former shareholder shall be held to be personally liable solely by reason of his or her being or having been a shareholder of the Fund or of a particular series and not because of his or her acts or omissions or for some other reason, the shareholder or former shareholder (or his or her heirs, executors, administrators or other legal representatives or, in the case of a corporation or other entity, its corporate or other general successor) shall be entitled out of the assets of the series of which he or she is a shareholder or former shareholder to be held harmless from and indemnified against all loss and expense arising from such liability. Thus, the risk of a shareholder of a series of the Fund incurring financial loss on account of such shareholder liability should be limited to circumstances in which the series itself would be unable to meet its obligations.

Saba Capital Income & Opportunities Fund

September 18, 2025

This opinion letter is rendered solely for your use in connection with the filing of the Registration Statement. We hereby consent to the filing of this opinion letter with the SEC in connection with the Registration Statement.

---

| | |
|:---|:---|
| Sincerely, | Sincerely, |
| ALSTON & BIRD LLP | ALSTON & BIRD LLP |
| By: | /s/ George Silfen |
|  | George Silfen, A Partner |

---

## Ex-99.(N)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (n)**

---

| | | |
|:---|:---|:---|
| &nbsp;&nbsp;![](sabab2a002.jpg) |  |  |
| &nbsp;&nbsp;![](sabab2a002.jpg) | &nbsp;&nbsp; Ernst & Young LLP<br> One Manhattan West<br> New York, NY 10001 | &nbsp;&nbsp; Tel: +1 212 773 3000<br> ey.com |

---

Consent of Independent Registered Public Accounting Firm

We consent to the references to our firm under the caption "Financial Highlights" and "Independent Registered Public Accounting Firm" in the Prospectus and "Independent Registered Public Accounting Firm" and "Financial Statements" in the Statement of Additional Information, each dated September 18, 2025, and each included in this Pre-Effective Amendment No. 1 to the Registration Statement (Form N-2, File No. 333-288532) of Saba Capital Income and Opportunities Fund (the "Registration Statement").

We also consent to the incorporation by reference of our report dated December 20, 2024, with respect to the consolidated financial statements and financial highlights of Saba Capital Income and Opportunities Fund included in the Annual Report (Form N-CSR) for the year ended October 31, 2024, into this Registration Statement, filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

New York, NY

September 18, 2025

## Ex-99.(R)(1)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (r)(1)**

**Code of Ethics**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.** **Introduction** 

The Firm serves as a registered investment adviser and as a result stands in a position of trust and confidence with respect to Clients. Accordingly, the Firm has a duty to act in the best interests of its Clients.

Each Employee (as defined below) of the Firm is required to conduct his/her business consistent with the highest legal and ethical standards and in accordance with all applicable laws, rules and regulations. In order to comply with these requirements and protect the Firm's reputation for integrity, the Firm has adopted this Code. The Code supplements and should be read in conjunction with the rest of the Firm's Manual, the Employee handbook and any other applicable Firm policies or procedures, each as may be amended, restated or supplemented from time to time.

As a registered investment adviser, the Firm is a fiduciary to its advisory Clients and as such owes its Clients a duty of care and a duty of loyalty. The fiduciary duties follow the contours of the relationship between the Firm and its Clients, and the Firm and its Clients may shape this relationship by agreement, provided that there is full and fair disclosure and informed consent. Employees are required to act in accordance with the Firm's fiduciary duties at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm's duty of care requires (i) that it has a fundamental obligation to provide advice that is in the best interests of its Clients at all times, (ii) that it seeks best execution of a Client's transactions where it has the responsibility to select broker-dealers to execute Client trades, and (iii) that it provides advice and monitoring over the course of the relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm owes its Clients a duty of undivided loyalty and the utmost good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm must employ reasonable care to avoid misleading Clients and provide full and fair disclosure of all material facts to Clients and prospective Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm must eliminate, or at a minimum, disclose fully and frankly all conflicts of interest that might incline it, consciously or unconsciously, to render advice that is not disinterested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm cannot use Client assets for its benefits or for the benefit of other Clients without Client consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; ● The Firm cannot place its own interests ahead of the interests of its Clients.

The Firm believes that these general principles not only help fulfill its fiduciary obligations, but also protect the Firm's reputation and instills in its employees the Firm's commitment to honesty, integrity and professionalism. All Employees should understand that these general principles apply to all conduct, whether or not the conduct is also covered by more specific standards or procedures set forth below.

Any violation of the Code by any Employee or members of an Employee's Family (as defined below) may result in dismissal, suspension with or without pay, or other disciplinary sanctions against the Employee, regardless of whether or not the violation of the Code also constitutes a violation of law. In situations where a violation of the Code might also constitute a violation of applicable law – such as trading while in possession of, or tipping on the basis of, material non-public information – penalties might include civil or criminal liability, including fines, imprisonment, disgorgement of profits realized or losses avoided, and other sanctions. All Employees should be aware that the Firm may initiate or cooperate in proceedings resulting in such liability.

Finally, the Code does not attempt to identify all possible conflicts of interests and literal compliance with each of the specific procedures will not shield an Employee from liability for conduct that violates the Firm's duty to act in the best interest of the Clients. Accordingly, the policies and procedures contained in the Code will be interpreted broadly to prevent any situation which could impugn on the Firm's reputation for professionalism and integrity. It is the duty of all Employees to follow both the specific requirements and the spirit of the Code. If an Employee believes that a conflict of interest has not been identified or appropriately addressed, that Employee should promptly bring the issue to Compliance's attention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.** **Coverage of the Code** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Employees** 

The Code applies to all of the Firm's employees, which for purposes of the Code includes all of the Firm's directors, officers, partners, employees, temporary employees and any other affiliated persons designated by Compliance (which may include, if designated by the CCO, consultants, independent contractors and certain other persons) (each an "<u>Access Person</u>," "<u>Employee</u>" or "<u>you</u>" and collectively the "<u>Access Persons</u>," "<u>Employees</u>" or "<u>we</u>"). All Employees are treated as Access Persons, irrespective of whether he or she has access to nonpublic information regarding Clients' purchase or sale of securities, is involved in making securities recommendations to clients or has access to such recommendations that are nonpublic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Personal Accounts and Managed Accounts** 

The requirements and restrictions on personal investing contained in the Code apply to all Personal Accounts (as defined below). All Employees are required to promptly notify Compliance in writing of any update to information previously provided to Compliance regarding any Personal Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Personal
 Accounts

The term "<u>Personal Account</u>" means any (a) securities account in which an Employee has any direct or indirect beneficial ownership<sup>1</sup>, which includes the following types of accounts (including brokerage accounts, margin accounts, IRAs and 401(k)s, investment partnerships and hedge funds) through which Covered Securities may be traded (including those opened prior to employment with the Firm) and (b) account on a prediction market platform including Kalshi:

● Accounts in the Employee's name;

● Accounts in the name of the Employee's spouse (a "Spouse");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Accounts in the name of the Employee's domestic partner, minor children and anyone else to whom the Employee provides significant financial support, and any immediate family sharing the Employee's household, including the Employee's domestic partner, child, stepchild, parent, stepparent, grandchild, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, other 'in laws' and adoptive relationships (each, together with a Spouse, a "Family Member"). The defined term, Employee, will also capture the defined term, Family Member, when appropriate in the sections covering Personal Account Reporting and Personal Transactions);

<sup>1</sup> An Employee is deemed to have "beneficial ownership" if the Employee, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares a direct or indirect opportunity to profit or share in any profit derived from the relevant Personal Account. For a full definition of *beneficial ownership*, refer to Rule 16a-1(a)(2) under the Exchange Act.

● Accounts in which the Employee or a Family Member has a beneficial interest (including those held in the name of a nominee or custodian, other than Managed Accounts (as defined below));

● Accounts with respect to which the Employee or a Family Member directly or indirectly controls or participates in, or has the right to control or to participate in, investment decisions (such as any trust or custodial accounts for which an Employee or Family Member acts as trustee or otherwise exercises influence or control or is a beneficiary);

● Accounts in which any partnership, corporation or other entity to which the Employee or a Family Member is a director, officer or partner or in which the Employee or a Family Member has a 10% or greater beneficial interest, or owns a controlling interest or exercises control; and

● Accounts in which the Employee or a Family Member exercises investment discretion, regardless of beneficial ownership.

Compliance reserves the right to limit the brokerage firms in which any Employee or a Family Member can maintain a Personal Account. Additionally, Compliance may require the disclosure of certain digital wallets holding cryptocurrencies and other digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Managed
 Accounts

A Managed Account ("<u>Managed Account</u>") is an account (a) in which the Employee or a Family Member has contractually delegated all direct investment discretion over the account to a third-party manager or trustee (the "<u>Managed Account Manager</u>") and (b) neither the Employee nor a Family has exercised "indirect discretion" over the account.

Subject to the qualifications set forth below, exercising "indirect discretion" includes, but is not limited to, the following actions: (a) providing recommendations, opinions, or advice to the Managed Account Manager with respect to any Covered Security (defined below); (b) consulting with or providing pre-approval to the Managed Account Manager prior to any transaction of a Covered Security (defined below) and (c) consulting with or providing instructions to the Managed Account Manager as to the particular allocation of a specific Covered Security (defined below) to be held in the account.

Conversely, the following actions do not constitute the exercise of "indirect discretion": (a) providing instructions to the Managed Account Manager for particular allocations for asset-classes (e.g. 10% cash, 60% equity, 30% bonds); (b) selecting broad investment strategies or risk tolerances (e.g. aggressive vs moderate vs conservative or requesting that the Managed Account Manager be mindful of liquidity); (c) reviewing or discussing the Managed Account Manager's views of portfolio positions provided that the Employee or a Family Member does not subsequently provide trade instructions to the Managed Account Manager with respect to any Covered Security; (d) reviewing or discussing a specific transaction after the settlement of such transaction; and (e) providing instructions to the Managed Account Manager to transact in an Exempt Security (defined below).

An Employee wishing to qualify an account as a Managed Account, must provide a "Managed Account letter," from a broker, investment adviser or account manager, as applicable, stating that the applicable Employee and Family Member, as applicable, has no direct or indirect influence or control with respect to which securities are purchased in the account. The Employee may also be required to provide periodic certifications thereafter (such timing of certifications to be determined at the sole discretion of Compliance). If an account is so established as a Managed Account, the account would not be subject to the reporting requirements herein. On an ad hoc sample basis, Compliance may request reports on holdings and/or transactions made in the Managed Account to identify transactions that would have been prohibited pursuant to the Code, absent reliance on the reporting exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Covered
 Securities

The term <u>Covered Security</u> includes the following:

● equity securities (publicly or privately offered), and options, warrants, or other derivatives related to such securities;

● debt securities (publicly or privately offered), and options, warrants, or other derivatives related to such securities;

● all forms of limited partnership and limited liability company interests, including interests in Private Funds (such as hedge funds or private equity funds), and interests in investment clubs;

● shares of exchange-traded funds;

● shares of closed-end funds; and

● all other "securities" as defined in section 202(a)(18) of the Advisers Act<sup>2</sup>.

A Covered Security does <u>not</u> include (such exempt securities and instruments described below are defined as an "<u>Exempt Security</u>"):

● direct obligations of the Governments of the United States and United Kingdom;

● bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements;

● shares issued by money market funds;

● shares issued by U.S.-based open-end funds other than reportable funds<sup>3</sup>;

● shares issued by unit investment trusts that are invested exclusively in one or more open-end funds, none of which are reportable funds;

● approved CFTC futures contracts which may include, but are not limited to, metals, agricultures, energy, currencies, and indices. Cryptocurrency derivatives (i.e., CME futures), however, are not deemed to be Exempt Securities; and

<sup>2</sup> "Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guaranty of, or warrant or right to subscribe to or purchase any of the foregoing.

<sup>3</sup> A "reportable fund" is any fund for which the Firm serves as an investment adviser as defined in Section 2(a)(20) of the Investment Company Act of 1940; or any fund whose investment adviser or principal underwriter controls the Firm, is controlled by the Firm, or is under common control with the Firm. For purposes of this Section, control has the same meaning as it does in Section 2(a)(9) of the Investment Company Act of 1940.

● spot cryptocurrency coins such as Bitcoin, Ethereum, and Litecoin and other digital assets unless obtained as part of an initial coin offering; however, related derivatives such as options and futures of such spot cryptocurrency coins and digital assets are not deemed to be Exempt Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.** **Personal Account Reporting** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Initial Holdings Disclosure** 

Each Employee must complete an initial holdings disclosure by registering (i) all Personal Accounts (including accounts that hold securities excluded from the definition of "covered security" and accounts on prediction market platforms) and (ii) all holdings in those Accounts (including event contracts on prediction market platforms) and a complete report of each Access Person's securities holdings no later than ten (10) days after the person joins the Firm, in the Firm's *ComplianceAlpha* system excluding those accounts that do not hold Covered Securities). The Initial Holdings Reports must be current as of a date not more than 45 days prior to the individual joining the Firm.

If you have any problems completing the initial holdings disclosure please contact Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Periodic Account Statements/Transaction Reports** 

After completion of the Initial Holdings Disclosure, Employees must satisfy the need for periodic account statements by ensuring that Personal Account information remains <u>at all times current</u> in *ComplianceAlpha*. For example, if an Employee beneficially owns investments in Personal Accounts and those investments do not appear in *ComplianceAlpha*, it is the responsibility of the Employee to correct the information and inform Compliance of any such situations, or may submit paper statements with proof of such investments. If you have any problems keeping Personal Account information current in *ComplianceAlpha*, please contact Compliance.

Employees must submit in *ComplianceAlpha* or by paper if necessary, a Quarterly Transaction Report no later than 30 days after the end of each calendar quarter, which report must cover, at a minimum, all transactions during the quarter (including transactions in event contracts on prediction market platforms) executed by the employee and Family Members. If an employee did not have any transactions or account openings to report, this should be indicated on *ComplianceAlpha* no later than 30 days of the end of each calendar quarter.

Annually, Employees must submit in *ComplianceAlpha*, an annual report of all securities holdings, no later than 45 days after the previous year. The holdings reports must be current as of a date not more than 45 days prior to the date the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** **Personal Transactions** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **General Parameters and Limitations** 

As a general mater, Employees are discouraged from investing in Covered Securities in their Personal Accounts. For any Employee that seeks to engage in such investing, the following parameters will apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. *Pre-Approval* <sup>4</sup>.
 Unless made through a Managed Account or with respect to an ETF on the Pre-Approved ETF
 List (see below), any transactions by you or Family Members in Covered Securities as
 well as event contracts on prediction market platforms require prior approval from Compliance
 either through the *ComplianceAlpha* system or via email. In instances where a member of Compliance (other than the CCO) seeks pre-approval, a different member
of Compliance will review and approve or deny the request. For instances where the CCO requires pre-approval, such approval will
be performed by the GC and CFO or another Partner of the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. *Pre-Approved ETF List*. All ETFs are Covered Securities and are required to be pre-approved under
 this Code; provided, however, that the ETFs included on the list of pre-approved ETFs
 (The " <u>Pre-Approved ETF List</u> ") are deemed to be pre-approved and therefore
 do not require a transaction specific pre-approval (subject
to the 30-day Holding Period set forth below). The Pre-Approved ETF List may be periodically updated by Compliance, and it is
the sole responsibility of the employee to ensure that transactions in ETFs by the employee or Family Members and which are not
pre-approved by Compliance are with respect to ETFs on the Pre-Approved ETF List then in effect at the time of the transactions.

<sup>4</sup> Pre-approval is not necessary if the transaction is non-volitional on the part of the Employee. "Non-volitional" transactions include (i) acquisitions of securities through dividend reinvestment plans, stock dividends, stock splits and reverse stock splits, and (ii) dispositions of securities through margin calls, mandatory tenders, options expirations and bond maturations. If any Employee has an automatic investment plan, it must be disclosed to and reviewed by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. *Possession of Confidential Information*. If an Employee is in possession of information relating
 to a company that could be considered confidential or non-public, they must refrain from
 seeking pre-approval and/or executing any transaction in both Client accounts and their
 Personal Accounts and they must immediately inform Compliance who will determine if the
 Firm's Restricted List or Grey List must be updated. Similarly, if an Employee
 comes into possession of such information *after* receiving pre-approval, but *before* executing a trade in their Personal Account, the pre-approval is deemed revoked,
 the Employee must refrain from executing the transaction and he/she must inform Compliance
 who will determine if the Firm's Restricted List or Grey List must be updated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. *No Investments in Individual Companies*. The Firm generally prohibits investing in single
 stock equities or corporate debt securities. Possible exceptions to this prohibition
 are limited to:

○ Sales of single name Covered Securities that an Employee already owned prior to joining the Firm; and

○ Other extraordinary circumstances as determined solely by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. *Speculative Investing*. Employees may engage in a purchase or sale of Covered Securities for long-term
 investment purposes only, and shall not engage in speculative or risk arbitrage-type
 investing. As a result, Employees and members of an Employee's Family generally
 may not engage in transactions involving what are general considered "deal"
 or "rumor" securities. "Deal" or "rumor" securities,
 as broadly determined by Compliance in its sole discretion, may include securities which
 are the subject of reports, rumors or speculation regarding significant market developments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. *30-day Holding Period*. The firm maintains a holding period of 30 calendar days for all Covered
 Securities in all Personal Accounts. Employees may not transact any buy followed by any
 sell (or any sell followed by any buy) in a security or related security until a period
 of 30 days has transpired between the two transactions. Any deviation from this holding
 period must be pre-approved by Compliance and will generally only be granted due to Employee
 hardship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. *Securities Held by the Private and Registered Funds*. Generally, unless Compliance determines
 there is a reason otherwise that does not conflict with the best interests of the Firm's
 clients (which may include a need for personal liquidity in a high volume, liquid security
 and such a sale does not conflict with the investment activities of the Firm), Employees
 will not approve transactions in Covered Securities involving a security that is owned
 by the Firm's clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. *Denials*.
 Compliance has the right to deny approval of any securities transaction with or without
 reason and/or explanation. The fact that a securities transaction is permitted or denied
 is confidential and should not be disclosed by the Employee seeking approval.<sup>5
</sup>Employees and Family Members should have no expectation of ready liquidity
 with respect to positions in Covered Securities. **Employees and Family Members may be required to hold such Covered Securities for an extended period of time and bear the risk of loss during the holding period, which may last for the duration of an Employee's employment with the Firm**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. *Approvals Only Applicable to Specific Request*. Any approval is valid only for the specific
 Covered Securities transaction for which approval was requested. For example, no mater
 how soon after an Employee has executed an approved transaction, if the Employee wishes
 to effect another transaction in the same security, the Employee must again seek
 approval from Compliance through *ComplianceAlpha* or via email.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. *Must be Ready to Trade*. Employees must seek approval for a Covered Securities transaction
 in a Personal Account only if they already have made a decision to engage in the transaction
 for which approval is sought. Any approval may be revoked at any time after it is granted
 and before the transaction is executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. *Expiration of Approvals*. Unless otherwise approved by Compliance in writing, approvals will
 expire at the close of the markets on the business day after approval is granted. If
 for any reason an Employee delays the execution beyond the expiration date/time, the
 Employee must again seek and receive approval for the transaction from Compliance prior
 to engaging in the transaction.

Compliance reserves complete discretion to limit the timing of (i) when pre-approval can be sought by Employees, (ii) when Compliance will review pending requests or (iii) when approval decisions are communicated to Employees. Compliance also maintains broad discretion to impose any additional requirements or restrictions or approve exceptions to the parameters set forth herein.

<sup>5</sup> Note, however, that Compliance may consult with other Employees, including but not limited to, supervisor(s), a portfolio manager or trader, with regards to any transaction request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Monitoring and Surveillance** 

Compliance will actively monitor employee personal trading for violations of the policy and reserves the right to direct an Employee to reverse, cancel, liquidate or freeze a transaction or position at its discretion. Compliance also reserves the right to restrict personal account trading due to violations of this policy and expects to take disciplinary action against violators, up to and including termination.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.** **Gifts and Entertainment** 

The Firm places high value on ethical business practices and addressing conflicts of interest. In order to address potential or perceived conflicts of interest that may arise when an Employee accepts or gives a gift or entertainment, the Firm requires Employees to disclose or cause to be disclosed within thirty (30) days after the current quarter-end certain gifts and entertainment they receive from any person or entity that does or seeks to do business with, or on behalf of, the Firm or the Clients (<u>e.g.</u>, investors, prospective investors, brokers, attorneys, advisers, consultants, borrowers, counterparties, or Clients (each, a "<u>Third Party</u>")). In some cases, the Firm requires pre-approval of gifts and entertainment, and may even prohibit them altogether. The following specific rules apply to all Employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Gifts** 

Employees must disclose or cause to be disclosed within thirty (30) days after the current quarter-end all gifts received or given with a fair value above $100 to Compliance.

Employees are required to seek pre-approval from Compliance via the Firm's *ComplianceAlpha* software program or via email prior to accepting or giving any gift above $250 from/to a Third Party. Compliance will keep a log of any such gifts and may require that any such gift be returned to the provider.

Notwithstanding the foregoing, no Employee may receive gifts having an aggregate value of $100 per year from any person associated with a broker-dealer unless approved by Compliance. Employees that are registered with FINRA may not accept or give gifts with an aggregate value of greater than $100 per entity annually and must report all gifts received and given. Rules applicable to persons associated with a broker-dealer prohibit this practice.

The Firm expects that it will bear the costs of Employee travel and lodging associated with conferences, research trips, and other business-related travel. If these costs are borne by a person or entity other than the Firm they should be treated as a gift to the Employee for purposes of this policy.

Gifts such as holiday baskets or lunches delivered to the Firm's offices, which are received on behalf of the Company, do not require reporting. Promotional items valued at less than $10 that clearly display the giver's company logo also need not be reported. Examples of promotional gifts include mugs, hats and umbrellas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Entertainment** 

Employees must disclose or cause to be disclosed within thirty (30) days after the current quarter-end all entertainment received or given to Compliance. Employees are required to report the giving or receiving of any entertainment that exceeds this $100 to Compliance via *ComplianceAlpha* or via email.

No Employee may accept or provide inappropriate, extravagant or excessive entertainment from/to a Third Party. If you receive an invitation for entertainment that you believe may exceed what is common in the industry for New York City (<u>e.g.</u>, an invite to a New York City dinner, concert or sporting event), you must seek pre-approval from Compliance via *ComplianceAlpha* or via email prior to accepting or providing the entertainment. Compliance will keep a log of any such entertainment and may require that any such invitation for entertainment be declined or, if accepted, repaid by the Employee.

Note that in order for an event to be considered "entertainment", the provider of the entertainment must also attend the event. Otherwise, the "entertainment" is actually a gift. For example, if an Employee receives tickets to an event, unless the provider attends the event with the Employee, the price of the tickets becomes relevant because acceptance of the tickets is conditioned on the aforementioned pre-approval rule on gifts above $250.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **Cash** 

No Employee may give or accept cash gifts, or cash equivalents, to or from an investor, prospective investor, borrower, Client or any entity that does or seeks to do business with, or on behalf of, the Firm or a Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Solicited Gifts** 

No Employee may use his or her position with the Firm to obtain anything of value from a Client, supplier, person to whom the Employee refers business, or any other entity with which the Firm, or a Client, does or seeks to do business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** **Charitable Donations** 

Giving of or the solicitation of any gifts or entertainment on behalf of a third party charitable organization shall be treated as giving or receiving a gift under the policy. The same (a) $100 and $250 reporting limits and (b) thirty (30) days after the current quarter-end reporting deadlines will apply.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.** **Government Officials** 

Employees may not give a gift or provide entertainment of any value to government officials or their families, including foreign officials, without the prior approval of Compliance (*see also* Political Contributions and Activities at Section VI).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g.** **Union Officials** 

The Department of Labor has established certain reporting requirements that apply to service providers to Taft-Hartley employee benefit funds. Those service providers, including investment advisors, must make annual reports detailing virtually all gifts and entertainment provided generally to unions, their officers, employees and agents, subject to a *de minimis* threshold. Accordingly, Employees must receive pre-approval for gifts and entertainment provided to such persons via *ComplianceAlpha*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**h.** **ERISA Plan Fiduciaries** 

The Firm must be mindful that myriad state and municipal regulations exist around the exchange of gifts and entertainment with such officials. Accordingly, Employees must consult with the CCO before providing any gifts or entertainment in connection with the solicitation of state and municipal pension, and similar plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.** **Referrals** 

Employees may not make referrals of Clients to third parties, such as accountants or attorneys, in return for any expected benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.** **Initial Public Offerings and Private Securities Transactions** 

Employees must seek pre-approval from Compliance prior to participating in any initial public offering or private security transaction. For the purpose of the policy, private security transactions will mean "any private transaction made for investment purposes outside of a covered brokerage account (<u>e.g.</u>, investing in a business, hedge fund or similar alternative investments, buying rental properties, flipping real estate, etc.)." Employees should seek pre-approval using *ComplianceAlpha* or by directly contacting Compliance. In general, such transactions will be approved if they fall outside the scope of the Firm's business. Compliance reserves the right to deny certain transactions that may fall under the scope of the Firm's business, or contribute to potential conflicts of interest or potential receipt of material non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.** **Cryptocurrencies** 

Investments and trading in spot cryptocurrency coins such as Bitcoin, Ethereum, and Litecoin are permissible without obtaining pre-approval from Compliance. Cryptocurrencies and other digital assets, however, may carry "security"-like features (<u>e.g.</u>, initial coin offerings, dividends, interest payments, or grant voting and/or ownership rights in an enterprise, entity, or product) and may be considered securities under federal securities law and are subject to the Initial Public Offerings (with respect to initial coin offerings) and Private Securities Transactions (with respect to initial coin offerings) policy outlined above. In the event that (a) U.S. federal law or (b) the SEC, the CFTC, a prudential regulator, or any other regulatory or administrative body with regulatory or supervisory authority over the Firm and/or the Clients deems certain cryptocurrency coins or digital assets to be "securities," then such cryptocurrency coins or digital assets may no longer be deemed to be Exempt Securities and may become subject to the overall restrictions contained in this Code relating to investments and transactions in Covered Securities, including but not limited to certain reporting and pre-approval requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.** **Family Connections to Public and Private Companies** 

In aiming to identify and address potential and perceived conflicts of interest, Employees of the Firm are required to disclose to Compliance, to the extent known, any family member that: (i) works for a competitor that could reasonably be expected to benefit from information to which the Employee has access; (ii) serves as a senior officer, director, or partner of a public company; (iii) serves as a senior officer<sup>6</sup>, director, or partner of a private company with which the Firm does or is likely to do business; (iv) owns five percent or more of the outstanding shares of a public company; or (v) owns five percent or more of the capital of a private company with which the Firm does or is likely to do business.

<sup>6</sup> "Senior officer", for the purpose of this policy shall mean President, Chief Executive Officer, Chief Financial Officer, Chief Operating Officer, Chief Technology Officer, Chief Compliance Officer, Chief Risk Officer, or any other comparable position.

If any of the above family connections exist, Employees shall refrain from the following (unless specifically approved by the CCO): (i) arranging or negotiating the terms of any business relationship between the subject company and the Firm (<u>e.g.</u>, service contracts, subscription agreements, and side letters); or (ii) engaging in any transactions with the subject company on behalf of the Firm.

For the purpose of this section, "family member" shall generally mean spouses, domestic partners, siblings, parents, children, and roommates. Disclosures should be made via the Employee Disclosure Questionnaire through *ComplianceAlpha* within 10 days of the start of employment or via email, and updated as necessary, but at least annually thereafter. Any questions regarding family connections that must be disclosed should be directed to Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I.** **Political Contributions and Activities** 

Rule 206(4)-5 under the Advisers Act is designed to address "pay-to-play" practices of registered investment advisers. The rule prohibits the following activities:

● An investment adviser may not receive compensation from a " <u>Government Entity</u> "<sup>7</sup>for two years after the adviser or a " <u>Covered Associate</u> "<sup>8</sup>has directly or indirectly made a " <u>Contribution</u> "<sup>9</sup>to a Government Official. Similarly, an investment adviser may not receive compensation from a RIC that is an investment option of a plan or program of a Government Entity (" <u>Covered Investment Pool</u> ") for two years after the adviser or a Covered Associate has directly or indirectly made a Contribution to a Government Official. This provision is referred to as the "time out."

<sup>7</sup> "<u>Government Entity</u>" means any state or political subdivision of a state, including (i) any agency, authority or instrumentality of the state or political subdivision; (ii) a pool of assets sponsored or established by the state or political subdivision or any agency, authority or instrumentality thereof, including, but not limited to a "defined benefit plan" or a state general fund; (iii) a plan or program of a Government Entity (<u>i.e.</u>, any participant-directed investment program or plan sponsored or established by a state or political subdivision thereof, including, but not limited to, a "qualified tuition plan" authorized under Section 529 of the Internal Revenue Code ("<u>IRC</u>"), a retirement plan authorized by Section 403(b) or 457 of the IRC, or any similar plan or program); and officers, agents, or employees of the state or political subdivision or any agency, authority or instrumentality thereof, acting in their official capacity. An official of a Government Entity ("<u>Government Official</u>") means any person (or election committee for such person) who was, at the time of a contribution, an incumbent, candidate or successful candidate for elective office of a Government Entity, if the office: (a) is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a Government Entity, or (b) has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser by a Government Entity.

<sup>8</sup> A "<u>Covered Associate</u>" of an investment adviser is defined as: (i) any general partner, managing member or executive officer, or other individual with a similar status or function; (ii) any employee who solicits a government entity for the investment adviser and any person who supervises, directly or indirectly, such employee; and (iii) any political action committee controlled by the investment adviser or by any of its Covered Associates.

<sup>9</sup> "<u>Contribution</u>" means any gift, subscription, loan, advance, or deposit of money or anything of value made for (i) the purpose of influencing any election for federal, state or local office, (ii) payment of debt incurred in connection with any such election, or (iii) transition or inaugural expenses of the successful candidate for state or local office.

● An adviser and its Covered Associates may not directly or indirectly coordinate or solicit a Contribution to a Government Official or to a political party of a state or locality where the adviser provides, or seeks to provide, advisory services to a government plan (" <u>Political Party</u> ").

● An adviser and its Covered Associates may not directly or indirectly pay a third party placement agent or other solicitor to solicit a Government Official to invest with an adviser, unless the third party is an SEC registered and FINRA member broker-dealer or SEC-registered municipal advisor that is subject to comparable "pay-to-play" restrictions (" <u>Regulated Person</u> ") with respect to the relevant Government Entity.

The rule includes a "look-back" provision. The "look back" provision attributes to an adviser the activities of a Covered Associate for the two years prior to the time the person became a Covered Associate, but shortens the "look-back" period to six months when the Covered Associate is a natural person who does not solicit investors for the adviser after becoming a Covered Associate. Pursuant to a "look back," an adviser may be subject to the "time out" provided by the rule.

The rule includes a carve out for the following de minimis Contributions by Covered Associates to Government Officials and Political Parties: up to $350 per election to a Political Party or Government Official for whom a Covered Associate is entitled to vote and up to $150 per election to a Political Party or Government Official for whom a Covered Associate is not entitled to vote.

<sup>10</sup> The recordkeeping requirements are provided under Rule 204-2(a)(18)(i)(B) of the Advisers Act.

Under the recordkeeping provisions related to the rule<sup>10</sup> advisers must maintain certain records of the activities of the adviser and its Covered Associates, including a listing of all Government Entities that have invested in a Covered Investment Pool through either a 529 plan or participant-directed 403(b) or 457 plans. In September 2011, recognizing that advisers of Covered Investment Pools may not know whether a Government Entity invests in a Covered Investment Pool due to the investment being through an omnibus account or the like, the SEC issued no-action relief that permits advisers to satisfy these recordkeeping requirements if the adviser maintains a record of:

1) Each Government Entity that invests in a Covered Investment Pool whose account can reasonably be identified as being held in the name of or for the benefit of such Government Entity on the records of the Covered Investment Pool or its transfer agent<sup>11</sup>;

2) Each Government Entity whose account was identified as that of a Government Entity – at or around the time of the initial investment – to the adviser or one of its client servicing employees or Covered Associates;

3) Each Government Entity that sponsors or establishes a 529 Plan and has selected a specific Covered Investment Pool as an option to be offered by such 529 Plan; and

4) Each Government Entity that has been solicited to invest in a Covered Investment Pool either (i) by a Covered Associate or Regulated Person of the adviser; or (ii) by an intermediary or affiliate of the Covered Investment Pool if a Covered Associate, Regulated Person, or client servicing employee of the adviser participated in or was involved in such solicitation, regardless of whether such Government Entity invested in the Covered Investment Pool.

**POLICY**

It is the policy of the Firm that it and its Covered Associates comply with the rule. Compliance is responsible for administering this policy and for maintaining a list of the Firm's Covered Associates. Although not all Employees are Covered Associates under Rule 206(4)-5 of the Advisers Act, the Firm deems all Employees to be Covered Associates for the purposes of this policy. The Firm and its Covered Associates may not directly or indirectly coordinate or solicit a Contribution to a Government Official or to a Political Party.

Neither the Firm nor any Covered Associate may engage in any of the activities covered by this policy without pre-approval, except:

● Covered Associates may contribute up to $150 per election to a Government Official or Political Party per election cycle when the Covered Associate is *not* entitled to vote for the candidate;

● Covered Associates may contribute up to $350 per election to a Government Official or Political Party per election cycle when the Covered Associate is entitled to vote for the candidate.

<sup>11</sup> Under the alternative recordkeeping requirements, Advisers are not required to seek information from omnibus account holders or the like in order to comply with the Rule.

**PROCEDURES**

Each Employee must obtain pre-clearance from Compliance via *ComplianceAlpha* or via email before making a Contribution, except any contributions by the CCO himself must be pre-cleared with the GC and CFO. The pre-clearance request must disclose the date, amount and recipient of such contribution.

Compliance will maintain the following records under this policy:

● The names, titles and business and residence addresses of all Covered Associates;

● A log of all direct or indirect contributions made by the Firm or any Covered Associate (i) to a Government Official or (ii) a Political Party or (iii) PAC (each, a " <u>Recipient</u> ") that includes:

○ The name and title of the contributor;

○ The name and title of the Recipient (including any city/county/State or other political subdivision); and

○ The amount and date of the Contribution.

● The names and business addresses of each Regulated Person of the Firm.

● A listing of all Government Entities identified on the direct records of the Firm. Compliance will review and update such records as needed.

● A listing of all Government Entities identified on the direct records of the Firm. Compliance will review and update such records as needed.

● A listing of all Government Entities whose accounts were identified as that of Government Entities – at or around the time of the initial investment – to the Firm or one of its Regulated Persons or Covered Associates.

● A listing of all Government Entities that sponsors or establishes a 529 Plan and has selected an account managed by the Firm as an option to be offered by the 529 Plan.

● A listing of all Government Entities that have been solicited to invest in any Client account either (i) by a Covered Associate or Regulated Person of the Firm; or (ii) by an intermediary or affiliate of the Firm if a Covered Associate or Regulated Person of the Firm participated in or was involved in such solicitation, regardless of whether such Government Entity invested in an account managed by the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Charitable Donations** 

Donations by the Firm or Employees to charities with the intention of influencing such charities to become investors are strictly prohibited. Employees should notify Compliance about any actual or apparent conflict of interest in connection with any charitable contribution, or about any contribution that could give an appearance of impropriety. Any charitable donations are required to be disclosed to Compliance pursuant to <u>Appendix I.E</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Public Office** 

Employees must obtain written pre-approval from Compliance prior to running for any public office. Employees may not hold a public office if it presents any actual or apparent conflict of interest with the Firm's business activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.** **Directorships and Outside Business Activities** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Directorships** 

No Employee shall serve as a director of any entity without first obtaining the approval of Compliance. Any such approval shall be based on a determination by Compliance (and, in some cases, the Employee's supervisor or the Firm's senior management) that such service will be consistent with the interests of the Client and that it can be conducted in accordance with the Firm's Policy on Insider Trading. At the direction of Compliance, in its sole discretion, such person may be required to resign from such directorship. Upon the commencement of employment, each Employee must notify Compliance if he or she currently serves as a director of any entity, or served in such capacity over the course of the preceding 12 months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Outside Business Activities** 

No Employee shall be employed by, or receive compensation from, any person or entity pursuant to a business activity outside the scope of his or her relationship with the Firm without first obtaining the approval of Compliance. Such approval, if granted, may be subject to restrictions or qualifications and is revocable at any time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**K.** **Social Media** 

The use of social media sites like Facebook, LinkedIn, Twitter and YouTube have become an increasingly legitimate and prevalent form of communication in people's personal and business lives. Accordingly, regulatory agencies have begun to focus on the regulation of social media by investment professionals.

The Firm has adopted the following policies and procedures to address Employees' potential usage of social media. It is the responsibility of each employee to adhere to these policies and procedures and report any known or suspected violations of this policy. Given the quickly evolving nature of social media and the changing regulatory landscape, these policies and procedures are subject to modification as Compliance sees fit. The CCO may, in his discretion, provide exceptions to this policy for certain personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Restrictions** 

Employees are <u>prohibited</u> from engaging in business communications and business activities on social media sites unless approved by Compliance. Employees are also prohibited from mentioning the Firm or its investment advisory services in their communications and activities on social media sites (with the general exception of LinkedIn mentioned below) unless approved by Compliance. Employee Facebook pages, Instagram profiles and Twitter profiles, amongst others, should not include any mention of the Firm without an exception granted from the CCO. On a case-by-case basis, exceptions may be granted to certain personnel. Limited exceptions have been made for the CIO, as spokesman for Saba, pursuant to detailed social media procedures documented outside of this Manual. Any business conversations must be conducted through Firm email, Bloomberg, or other approved communications.

Additionally, Employees are encouraged but not required to implement enhanced privacy settings for their personal social media sites including making their social media profiles and feeds only available to known personal contacts. It is the responsibility of each Employee to ensure that their respective profiles remain personal.

The one general exception to the above restriction, notwithstanding exceptions granted by the CCO, is for Employees who wish to make use of the professional-oriented networking site, LinkedIn. Employees may mention the Firm, but must adhere to the following guidelines: (i) profiles must only identify the Firm as "Saba Capital Management, L.P."; (ii) there should be no description of the Firm's business; (iii) job titles must either match the title included in the relevant Employee's employment contract, business card, or be approved by Compliance; (iv) Employees are responsible for ensuring their LinkedIn profile is properly linked to the Firm's official profile page; and (v) no Employee can initiate a Saba Capital business-related contact through any LinkedIn means of communication – such communications must be done through the Firm's email system. In addition, Employees should be particularly wary of making and receiving "recommendations" on LinkedIn. When posted by other users to your account, "recommendations" can be considered advertisements. Do not solicit "recommendations" from other users and notify Compliance before accepting any "recommendation".

Below is a summary of restrictions relating to certain social media sites:

● **Facebook** 

○ Cannot mention the Firm anywhere on site

○ Recommended Privacy Settings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ For
 each section, set to "Friends only"

● **Twitter/Instagram** 

○ Cannot mention the Firm anywhere on site (unless granted an exception by the CCO)

○ Recommended Privacy Settings:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Go
 to privacy section, protect tweets/posts so they can only be viewed by friends or people
 whom you approve

● **LinkedIn** 

○ Limited mention of Firm allowed – name, title, dates served

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Any
 other description of duties at the Firm must be pre-approved by Compliance

○ Recommended Privacy Settings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Only
 connections should be able to view activity

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;▪ Profile
 – Edit Public profile and uncheck "show all details"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.** **Personal email accounts** 

Saba Capital permits incidental use of personal e-mail while in the office. Similar to use of social media, Employees are prohibited from engaging in business communications or activities through personal email accounts, as these cannot be archived by Global Relay.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **Personal instant messaging accounts** 

Any use of personal instant messaging accounts for business purposes must be pre-approved by Compliance. Compliance will only approve certain instant messaging or chat services such as Bloomberg Instant Messenger which can be configured to save all communications to Global Relay. For the avoidance of doubt, Employees are not permitted to use Google Chat, WhatsApp, WeChat, Telegram, Signal, Viber, Line, KakaoTalk or any other similar messaging platform for business communications under any circumstance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.** **Text Messaging** 

Employees are prohibited from using text messaging to transmit work-related messages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.** **Oversight** 

All Employees must adhere to the highest ethical standards with respect to all of their interactions through any social media outlet. The Firm's computer and e-mail systems are valuable assets. While the Firm permits incidental use of its systems for personal activities as set forth above, it must be infrequent and must not involve any prohibited activity, interfere with the productivity of the Employee or his/her co-workers or consume system resources. In the case that any conversation through personal e-mail or social media becomes business related, the Employee must immediately stop the communication, inform Compliance, and resume the discussion via the Firm's email system.

Employees must also understand that they should have no expectation of a personal privacy right with respect to any form of communication through, or mater created on or received on, or even accessed on, the Firm's computer and e-mail systems. The Firm can choose to access, review and preserve any such communication with or without notice. Each Employee understands and is in agreement with this fact and waives any right to personal privacy with respect to such communications. Employees are required to confirm this understanding by signing an initial and annual acknowledgement form provided by Compliance.

In addition, each Employee must disclose (i) all social media accounts or blogs (and the associated user names, if any) and (ii) the address for all personal email and instant messaging accounts upon employment via a disclosure form provided by Compliance. Employees are required to notify Compliance of any changes to these disclosures as they occur, and generally confirm them annually.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**L.** **Reporting Violations** 

Every Employee must immediately report any violation, or suspected violation, of the Code to Compliance. Such reports can be filed through *ComplianceAlpha* or the Employee can speak with Compliance directly. All reports will be treated confidentially and will be investigated promptly and appropriately. The Firm will not retaliate against any Employee who reports a violation of the Code in good faith. Compliance will keep records of any material violation of the Code, and of any action taken as a result of the violation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**M.** **Exceptions to the Code** 

Compliance may, under very limited circumstances, grant an exception from the requirements of the Code on a case-by-case basis, provided that:

● The Employee seeking the exception provides Compliance with a written statement (i) explaining why an exception would be appropriate and/or (ii) representing that compliance with the requirement would impose undue hardship on the Employee;

● Compliance believes that the exception would not harm the Clients or violate the general principles stated in the Code; and

● The Employee provides any supporting documentation that Compliance may request.

No exceptions may be made to the fundamental requirements contained in the Code that have been adopted to meet applicable rules under any applicable federal or state securities law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**N.** **Administration of the Code** 

Compliance will oversee the implementation of the Code, including, but not limited to, determining that personal trades by Employees and members of an Employee's Family are consistent with the requirements and restrictions set forth in the Code. Employees are required to fully cooperate with any inquiries into their conduct by Compliance and any monitoring or review procedures employed by the Firm. Compliance will maintain all applicable records associated with Employee compliance with the code including, but not limited to: (i) records of employee acknowledgement of the Code, (ii) covered personal trading records and reports, (iii) records of any exceptions granted, and (iv) violations of the Code and action undertaken in response.

The Firm may, upon request, allow investors to review the Code at the Firm's offices.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**O.** **Sanctions** 

All Employees are required to adhere to the principles and procedures set forth in the Code. Any violation of any provision of the Code may result in disciplinary action. Compliance will determine an appropriate sanction. Disciplinary action may include, among other sanctions, a letter of reprimand, disgorgement of any personal trading profits, suspension with or without pay, demotion or termination of employment – in all cases regardless of whether or not the violation of the Code also constitutes a violation of law.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**P.** **Acknowledgement of Receipt and Compliance** 

The Firm will provide each Employee with a copy of the Code and any amendments hereto. Any questions regarding any provision of the Code or its application should be directed to Compliance. Each Employee must provide Compliance with a written Acknowledgement Form evidencing the fact that such Employee has received, reviewed, and understands the Code (i) upon the date the Employee first receives the Code and (ii) as required by Compliance thereafter. The Acknowledgement Form is provided by Compliance upon employment, and at least annually thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Q.** **Reports to the Registered Fund's Board of Directors/Trustees** 

The Firm will report to the Registered Funds' board of directors/trustees any material violation of the Code by an Access Person and such Access Person may be called upon to explain the circumstances surrounding any non-clerical violation for evaluation by the board.

In addition, upon request and no less frequently than annually, the Firm will, upon written request, provide to the applicable board a written report that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (a) Describes any issues arising under the Code or procedures since the last report to the board, including, but not limited to, information about material violations of the Code or procedures and sanctions imposed in response to the material violations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (b) Certifies that the Firm has adopted procedures reasonably necessary to prevent Access Persons from violating the Code.

## Ex-99.(R)(2)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (r)(2)**

![](ex99r2001.jpg)

Code of Ethics<sup>1</sup>

*August 31, 2025*

<sup>1</sup> Reformatted for public filing purposes.

**Code of Ethics**

&nbsp;&nbsp;&nbsp;&nbsp;A. Introduction

Saba Capital Management, L.P. (the "Firm") serves as a registered investment adviser and as a result stands in a position of trust and confidence with respect to Clients. Accordingly, the Firm has a duty to act in the best interests of its advisory clients (the "Clients").

Each Employee (as defined below) of the Firm is required to conduct his/her business consistent with the highest legal and ethical standards and in accordance with all applicable laws, rules and regulations. In order to comply with these requirements and protect the Firm's reputation for integrity, the Firm has adopted this Code. The Code supplements and should be read in conjunction with the rest of the Firm's Compliance Manual (the "Manual"), the Employee handbook and any other applicable Firm policies or procedures, each as may be amended, restated or supplemented from time to time.

As a registered investment adviser, the Firm is a fiduciary to its advisory Clients and as such owes its Clients a duty of care and a duty of loyalty. The fiduciary duties follow the contours of the relationship between the Firm and its Clients, and the Firm and its Clients may shape this relationship by agreement, provided that there is full and fair disclosure and informed consent. Employees are required to act in accordance with the Firm's fiduciary duties at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm's duty of care requires (i) that it has a fundamental obligation to provide advice that is in the best interests of its Clients at all times, (ii) that it seeks best execution of a Client's transactions where it has the responsibility to select broker-dealers to execute Client trades, and (iii) that it provides advice and monitoring over the course of the relationship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm owes its Clients a duty of undivided loyalty and the utmost good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm must employ reasonable care to avoid misleading Clients and provide full and fair disclosure of all material facts to Clients and prospective Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm must eliminate, or at a minimum, disclose fully and frankly all conflicts of interest that might incline it, consciously or unconsciously, to render advice that is not disinterested.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm cannot use Client assets for its benefits or for the benefit of other Clients without Client consent.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● The Firm cannot place its own interests ahead of the interests of its Clients.

The Firm believes that these general principles not only help fulfill its fiduciary obligations, but also protect the Firm's reputation and instills in its employees the Firm's commitment to honesty, integrity and professionalism. All Employees should understand that these general principles apply to all conduct, whether or not the conduct is also covered by more specific standards or procedures set forth below.

Any violation of the Code by any Employee or members of an Employee's Family (as defined below) may result in dismissal, suspension with or without pay, or other disciplinary sanctions against the Employee, regardless of whether or not the violation of the Code also constitutes a violation of law. In situations where a violation of the Code might also constitute a violation of applicable law – such as trading while in possession of, or tipping on the basis of, material non-public information – penalties might include civil or criminal liability, including fines, imprisonment, disgorgement of profits realized or losses avoided, and other sanctions. All Employees should be aware that the Firm may initiate or cooperate in proceedings resulting in such liability.

Finally, the Code does not attempt to identify all possible conflicts of interests and literal compliance with each of the specific procedures will not shield an Employee from liability for conduct that violates the Firm's duty to act in the best interest of the Clients. Accordingly, the policies and procedures contained in the Code will be interpreted broadly to prevent any situation which could impugn on the Firm's reputation for professionalism and integrity. It is the duty of all Employees to follow both the specific requirements and the spirit of the Code. If an Employee believes that a conflict of interest has not been identified or appropriately addressed, that Employee should promptly bring the issue to the attention of the Firm's Legal & Compliance Department ("Compliance").

&nbsp;&nbsp;&nbsp;&nbsp;B. Coverage
of the Code

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Employees** 

The Code applies to all of the Firm's employees, which for purposes of the Code includes all of the Firm's directors, officers, partners, employees, temporary employees and any other affiliated persons designated by Compliance (which may include, if designated by the CCO, consultants, independent contractors and certain other persons) (each an "<u>Access Person</u>," "<u>Employee</u>" or "<u>you</u>" and collectively the "<u>Access Persons</u>," "<u>Employees</u>" or "<u>we</u>"). All Employees are treated as Access Persons, irrespective of whether he or she has access to nonpublic information regarding Clients' purchase or sale of securities, is involved in making securities recommendations to clients or has access to such recommendations that are nonpublic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Personal
Accounts and Managed Accounts

The requirements and restrictions on personal investing contained in the Code apply to all Personal Accounts (as defined below). All Employees are required to promptly notify Compliance in writing of any update to information previously provided to Compliance regarding any Personal Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. Personal
Accounts

The term "<u>Personal Account</u>" means any (a) securities account in which an Employee has any direct or indirect beneficial ownership<sup>2</sup>, which includes the following types of accounts (including brokerage accounts, margin accounts, IRAs and 401(k)s, investment partnerships and hedge funds) through which Covered Securities may be traded (including those opened prior to employment with the Firm) and (b) account on a prediction market platform including Kalshi:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Accounts in the Employee's name;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Accounts in the name of the Employee's spouse (a "Spouse");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;● Accounts in the name of the Employee's domestic partner, minor children and anyone else to whom the Employee provides significant financial support, and any immediate family sharing the Employee's household, including the Employee's domestic partner, child, stepchild, parent, stepparent, grandchild, grandparent, sibling, mother-in-law, father-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, other 'in laws' and adoptive relationships (each, together with a Spouse, a "Family Member"). The defined term, Employee, will also capture the defined term, Family Member, when appropriate in the sections covering Personal Account Reporting and Personal Transactions);

<sup>2</sup> An Employee is deemed to have "beneficial ownership" if the Employee, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, has or shares a direct or indirect opportunity to profit or share in any profit derived from the relevant Personal Account. For a full definition of *beneficial ownership*, refer to Rule 16a-1(a)(2) under the Exchange Act.

● Accounts in which the Employee or a Family Member has a beneficial interest (including those held in the name of a nominee or custodian, other than Managed Accounts (as defined below));

● Accounts with respect to which the Employee or a Family Member directly or indirectly controls or participates in, or has the right to control or to participate in, investment decisions (such as any trust or custodial accounts for which an Employee or Family Member acts as trustee or otherwise exercises influence or control or is a beneficiary);

● Accounts in which any partnership, corporation or other entity to which the Employee or a Family Member is a director, officer or partner or in which the Employee or a Family Member has a 10% or greater beneficial interest, or owns a controlling interest or exercises control; and

● Accounts in which the Employee or a Family Member exercises investment discretion, regardless of beneficial ownership.

Compliance reserves the right to limit the brokerage firms in which any Employee or a Family Member can maintain a Personal Account. Additionally, Compliance may require the disclosure of certain digital wallets holding cryptocurrencies and other digital assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. Managed
 Accounts

A Managed Account ("<u>Managed Account</u>") is an account (a) in which the Employee or a Family Member has contractually delegated all direct investment discretion over the account to a third-party manager or trustee (the "<u>Managed Account Manager</u>") and (b) neither the Employee nor a Family has exercised "indirect discretion" over the account.

Subject to the qualifications set forth below, exercising "indirect discretion" includes, but is not limited to, the following actions: (a) providing recommendations, opinions, or advice to the Managed Account Manager with respect to any Covered Security (defined below); (b) consulting with or providing pre-approval to the Managed Account Manager prior to any transaction of a Covered Security (defined below) and (c) consulting with or providing instructions to the Managed Account Manager as to the particular allocation of a specific Covered Security (defined below) to be held in the account.

Conversely, the following actions do not constitute the exercise of "indirect discretion": (a) providing instructions to the Managed Account Manager for particular allocations for asset-classes (e.g. 10% cash, 60% equity, 30% bonds); (b) selecting broad investment strategies or risk tolerances (e.g. aggressive vs moderate vs conservative or requesting that the Managed Account Manager be mindful of liquidity); (c) reviewing or discussing the Managed Account Manager's views of portfolio positions provided that the Employee or a Family Member does not subsequently provide trade instructions to the Managed Account Manager with respect to any Covered Security; (d) reviewing or discussing a specific transaction after the settlement of such transaction; and (e) providing instructions to the Managed Account Manager to transact in an Exempt Security (defined below).

An Employee wishing to qualify an account as a Managed Account, must provide a "Managed Account letter," from a broker, investment adviser or account manager, as applicable, stating that the applicable Employee and Family Member, as applicable, has no direct or indirect influence or control with respect to which securities are purchased in the account. The Employee may also be required to provide periodic certifications thereafter (such timing of certifications to be determined at the sole discretion of Compliance). If an account is so established as a Managed Account, the account would not be subject to the reporting requirements herein. On an ad hoc sample basis, Compliance may request reports on holdings and/or transactions made in the Managed Account to identify transactions that would have been prohibited pursuant to the Code, absent reliance on the reporting exception.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. Covered
 Securities

The term <u>Covered Security</u> includes the following:

● equity securities (publicly or privately offered), and options, warrants, or other derivatives related to such securities;

● debt securities (publicly or privately offered), and options, warrants, or other derivatives related to such securities;

● all forms of limited partnership and limited liability company interests, including interests in Private Funds (such as hedge funds or private equity funds), and interests in investment clubs;

● shares of exchange-traded funds;

● shares of closed-end funds; and

● all other "securities" as defined in section 202(a)(18) of the Advisers Act<sup>3</sup>.

A Covered Security does <u>not</u> include (such exempt securities and instruments described below are defined as an "<u>Exempt Security</u>"):

● direct obligations of the Governments of the United States and United Kingdom;

● bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements;

● shares issued by money market funds;

● shares issued by U.S.-based open-end funds other than reportable funds<sup>4</sup>;

<sup>3</sup> "Security" means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into on a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guaranty of, or warrant or right to subscribe to or purchase any of the foregoing.

<sup>4</sup> A "reportable fund" is any fund for which the Firm serves as an investment adviser as defined in Section 2(a)(20) of the Investment Company Act of 1940; or any fund whose investment adviser or principal underwriter controls the Firm, is controlled by the Firm, or is under common control with the Firm. For purposes of this Section, control has the same meaning as it does in Section 2(a)(9) of the Investment Company Act of 1940.

● shares issued by unit investment trusts that are invested exclusively in one or more open-end funds, none of which are reportable funds;

● approved CFTC futures contracts which may include, but are not limited to, metals, agricultures, energy, currencies, and indices. Cryptocurrency derivatives (i.e., CME futures), however, are not deemed to be Exempt Securities; and

● spot cryptocurrency coins such as Bitcoin, Ethereum, and Litecoin and other digital assets unless obtained as part of an initial coin offering; however, related derivatives such as options and futures of such spot cryptocurrency coins and digital assets are not deemed to be Exempt Securities.

&nbsp;&nbsp;&nbsp;&nbsp;C. Personal
Account Reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.** **Initial Holdings Disclosure** 

Each Employee must complete an initial holdings disclosure by registering (i) all Personal Accounts (including accounts that hold securities excluded from the definition of "covered security" and accounts on prediction market platforms) and (ii) all holdings in those Accounts (including event contracts on prediction market platforms) and a complete report of each Access Person's securities holdings no later than ten (10) days after the person joins the Firm, in the Firm's compliance system (the "Compliance System"), described in Appendix I to the Manual, excluding those accounts that do not hold Covered Securities). The Initial Holdings Reports must be current as of a date not more than 45 days prior to the individual joining the Firm.

If you have any problems completing the initial holdings disclosure please contact Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. Periodic
Account Statements/Transaction Reports

After completion of the Initial Holdings Disclosure, Employees must satisfy the need for periodic account statements by ensuring that Personal Account information remains <u>at all times current</u> in the Compliance System. For example, if an Employee beneficially owns investments in Personal Accounts and those investments do not appear in the Compliance System, it is the responsibility of the Employee to correct the information and inform Compliance of any such situations, or may submit paper statements with proof of such investments. If you have any problems keeping Personal Account information current in the Compliance System, please contact Compliance.

Employees must submit in the Compliance System or by paper if necessary, a Quarterly Transaction Report no later than 30 days after the end of each calendar quarter, which report must cover, at a minimum, all transactions during the quarter (including transactions in event contracts on prediction market platforms) executed by the employee and Family Members. If an employee did not have any transactions or account openings to report, this should be indicated on the Compliance System no later than 30 days of the end of each calendar quarter.

Annually, Employees must submit in the Compliance System, an annual report of all securities holdings, no later than 45 days after the previous year. The holdings reports must be current as of a date not more than 45 days prior to the date the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;D. Personal
Transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.** **General Parameters and Limitations** 

As a general matter, Employees are discouraged from investing in Covered Securities in their Personal Accounts. For any Employee that seeks to engage in such investing, the following parameters will apply:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i. *Pre-Approval* <sup>5</sup>.
Unless made through a Managed Account or with respect to an ETF on the Pre-Approved ETF List (see below), any transactions by
you or Family Members in Covered Securities as well as event contracts on prediction market platforms require prior approval from
Compliance either through the Compliance System or via email. In instances where a member of Compliance (other than the CCO) seeks
pre-approval, a different member of Compliance will review and approve or deny the request. For instances where the Chief Compliance
Officer requires pre-approval, such approval will be performed by the General Counsel and Chief Financial Officer or another Partner
of the Firm.

<sup>5</sup> Pre-approval is not necessary if the transaction is non-volitional on the part of the Employee. "Non-volitional" transactions include (i) acquisitions of securities through dividend reinvestment plans, stock dividends, stock splits and reverse stock splits, and (ii) dispositions of securities through margin calls, mandatory tenders, options expirations and bond maturations. If any Employee has an automatic investment plan, it must be disclosed to and reviewed by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii. *Pre-Approved ETF List*. All ETFs are Covered Securities and are required to be pre-approved under
 this Code; provided, however, that the ETFs included on the list of pre-approved ETFs
 (The " <u>Pre-Approved ETF List</u> ") are deemed to be pre-approved and therefore
 do not require a transaction specific pre-approval (subject to the 30-day Holding Period
 set forth below). The Pre-Approved ETF List may be periodically updated by Compliance,
 and it is the sole responsibility of the employee to ensure that transactions in ETFs
 by the employee or Family Members and which are not pre-approved by Compliance are with
 respect to ETFs on the Pre-Approved ETF List then in effect at the time of the transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii. *Possession of Confidential Information*. If an Employee is in possession of information relating
 to a company that could be considered confidential or non-public, they must refrain from
 seeking pre-approval and/or executing any transaction in both Client accounts and their
 Personal Accounts and they must immediately inform Compliance who will determine if the
 Firm's Restricted List or Grey List must be updated. Similarly, if an Employee
 comes into possession of such information *after* receiving pre-approval, but *before* executing a trade in their Personal Account, the pre-approval is deemed revoked,
 the Employee must refrain from executing the transaction and he/she must inform Compliance
 who will determine if the Firm's Restricted List or Grey List must be updated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv. *No Investments in Individual Companies*. The Firm generally prohibits investing in single
 stock equities or corporate debt securities. Possible exceptions to this prohibition
 are limited to:

○ Sales of single name Covered Securities that an Employee already owned prior to joining the Firm; and

○ Other extraordinary circumstances as determined solely by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v. *Speculative Investing*. Employees may engage in a purchase or sale of Covered Securities for long-term
 investment purposes only, and shall not engage in speculative or risk arbitrage-type
 investing. As a result, Employees and members of an Employee's Family generally
 may not engage in transactions involving what are general considered "deal"
 or "rumor" securities. "Deal" or "rumor" securities,
 as broadly determined by Compliance in its sole discretion, may include securities which
 are the subject of reports, rumors or speculation regarding significant market developments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi. *30-day Holding Period*. The firm maintains a holding period of 30 calendar days for all Covered
 Securities in all Personal Accounts. Employees may not transact any buy followed by any
 sell (or any sell followed by any buy) in a security or related security until a period
 of 30 days has transpired between the two transactions. Any deviation from this holding
 period must be pre- approved by Compliance and will generally only be granted due to
 Employee hardship.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii. *Securities Held by the Private and Registered Funds*. Generally, unless Compliance determines
 there is a reason otherwise that does not conflict with the best interests of the Firm's
 clients (which may include a need for personal liquidity in a high volume, liquid security
 and such a sale does not conflict with the investment activities of the Firm), Compliance
 will not approve transactions in Covered Securities involving a security that is owned
 by the Firm's clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii. *Denials*.
 Compliance has the right to deny approval of any securities transaction with or without
 reason and/or explanation. The fact that a securities transaction is permitted or denied
 is confidential and should not be disclosed by the Employee seeking approval.<sup>6</sup>
 Employees and Family Members should have no expectation of ready liquidity with respect
 to positions in Covered Securities. **Employees and Family Members may be required to hold such Covered Securities for an extended period of time and bear the risk of loss during the holding period, which may last for the duration of an Employee's employment with the Firm**.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ix. *Approvals Only Applicable to Specific Request*. Any approval is valid only for the specific
 Covered Securities transaction for which approval was requested. For example, no matter
 how soon after an Employee has executed an approved transaction, if the Employee wishes
 to effect another transaction in the same security, the Employee must again seek approval
 from Compliance through the Compliance System or via email.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;x. *Must be Ready to Trade*. Employees must seek approval for a Covered Securities transaction
 in a Personal Account only if they already have made a decision to engage in the transaction
 for which approval is sought. Any approval
may be revoked at any time after it is granted and before the transaction is executed.

<sup>6</sup> Note, however, that Compliance may consult with other Employees, including but not limited to, supervisor(s), a portfolio manager or trader, with regards to any transaction request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;xi. *Expiration of Approvals*. Unless otherwise approved by Compliance in writing, approvals will
 expire at the close of the markets on the business day after approval is granted. If
 for any reason an Employee delays the execution beyond the expiration date/time, the
 Employee must again seek and receive approval for the transaction from Compliance prior
 to engaging in the transaction.

Compliance reserves complete discretion to limit the timing of (i) when pre-approval can be sought by Employees, (ii) when Compliance will review pending requests or (iii) when approval decisions are communicated to Employees. Compliance also maintains broad discretion to impose any additional requirements or restrictions or approve exceptions to the parameters set forth herein.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. Monitoring
and Surveillance

Compliance will actively monitor employee personal trading for violations of the policy and reserves the right to direct an Employee to reverse, cancel, liquidate or freeze a transaction or position at its discretion. Compliance also reserves the right to restrict personal account trading due to violations of this policy and expects to take disciplinary action against violators, up to and including termination.

&nbsp;&nbsp;&nbsp;&nbsp;E. Gifts
and Entertainment

The Firm's policies and procedures with respect to Gifts and Entertainment can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;F. Initial
Public Offerings and Private Securities Transactions

Employees must seek pre-approval from Compliance prior to participating in any initial public offering or private security transaction. For the purpose of the policy, private security transactions will mean "any private transaction made for investment purposes outside of a covered brokerage account (<u>e.g.</u>, investing in a business, hedge fund or similar alternative investments, buying rental properties, flipping real estate, etc.)." Employees should seek pre-approval using the Compliance System or by directly contacting Compliance. In general, such transactions will be approved if they fall outside the scope of the Firm's business. Compliance reserves the right to deny certain transactions that may fall under the scope of the Firm's business, or contribute to potential conflicts of interest or potential receipt of material non-public information.

&nbsp;&nbsp;&nbsp;&nbsp;G. Cryptocurrencies

The Firm's policies and procedures with respect to cryptocurrencies can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;H. Family
Connections to Public and Private Companies

The Firm's policies and procedures with respect to Family Connections to Public and Private Companies can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;I. Political
Contributions and Activities

The Firm's policies and procedures with respect to Political Contributions and Activities as well as Charitable Donations and Employees seeking public office can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;J. Directorships
and Outside Business Activities

The Firm's policies and procedures with regards to Directorships and Outside Business Activities can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;K. Social
Media

The Firm's policies and procedures with respect to Social Media, Personal Email Accounts, Personal Instant Messaging Accounts, and Text Messaging can be found in Appendix I to the Manual.

&nbsp;&nbsp;&nbsp;&nbsp;L. Reporting
Violations

Every Employee must immediately report any violation, or suspected violation, of the Code to Compliance. Such reports can be filed through Compliance System or the Employee can speak with Compliance directly. All reports will be treated confidentially and will be investigated promptly and appropriately. The Firm will not retaliate against any Employee who reports a violation of the Code in good faith. Compliance will keep records of any material violation of the Code, and of any action taken as a result of the violation.

&nbsp;&nbsp;&nbsp;&nbsp;M. Exceptions
to the Code

Compliance may, under very limited circumstances, grant an exception from the requirements of the Code on a case-by-case basis, provided that:

● The Employee seeking the exception provides Compliance with a written statement (i) explaining why an exception would be appropriate and/or (ii) representing that compliance with the requirement would impose undue hardship on the Employee;

● Compliance believes that the exception would not harm the Clients or violate the general principles stated in the Code; and

● The Employee provides any supporting documentation that Compliance may request.

No exceptions may be made to the fundamental requirements contained in the Code that have been adopted to meet applicable rules under any applicable federal or state securities law.

&nbsp;&nbsp;&nbsp;&nbsp;N. Administration
of the Code

Compliance will oversee the implementation of the Code, including, but not limited to, determining that personal trades by Employees and members of an Employee's Family are consistent with the requirements and restrictions set forth in the Code. Employees are required to fully cooperate with any inquiries into their conduct by Compliance and any monitoring or review procedures employed by the Firm. Compliance will maintain all applicable records associated with Employee compliance with the code including, but not limited to: (i) records of employee acknowledgement of the Code, (ii) covered personal trading records and reports, (iii) records of any exceptions granted, and (iv) violations of the Code and action undertaken in response.

The Firm may, upon request, allow investors to review the Code at the Firm's offices.

&nbsp;&nbsp;&nbsp;&nbsp;O. Sanctions

All Employees are required to adhere to the principles and procedures set forth in the Code. Any violation of any provision of the Code may result in disciplinary action. Compliance will determine an appropriate sanction. Disciplinary action may include, among other sanctions, a letter of reprimand, disgorgement of any personal trading profits, suspension with or without pay, demotion or termination of employment – in all cases regardless of whether or not the violation of the Code also constitutes a violation of law.

&nbsp;&nbsp;&nbsp;&nbsp;P. Acknowledgement
of Receipt and Compliance

The Firm will provide each Employee with a copy of the Code and any amendments hereto. Any questions regarding any provision of the Code or its application should be directed to Compliance. Each Employee must provide Compliance with a written Acknowledgement Form evidencing the fact that such Employee has received, reviewed, and understands the Code (i) upon the date the Employee first receives the Code and (ii) as required by Compliance thereafter. The Acknowledgement Form is provided by Compliance upon employment, and at least annually thereafter.

&nbsp;&nbsp;&nbsp;&nbsp;Q. Reports
to the Registered Fund's Board of Directors/Trustees

With respect to the registered funds for which it serves as the investment adviser (the "Registered Funds"), the Firm will report to the Registered Funds' board of directors/trustees any material violation of the Code by an Access Person, and such Access Person may be called upon to explain the circumstances surrounding any non-clerical violation for evaluation by the board.

In addition, upon request and no less frequently than annually, the Firm will, upon written request, provide to the applicable board a written report that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) Describes any issues arising under the Code or procedures since the last report to the board, including, but not limited to, information about material violations of the Code or procedures and sanctions imposed in response to the material violations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) Certifies that the Firm has adopted procedures reasonably necessary to prevent Access Persons from violating the Code.

## Ex-Filing

?xml version='1.0' encoding='ASCII'? EX-FILING FEE Exhibit

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (s)**

**Calculation of Filing Fee Tables** 

**FORM N-2/A** 

(Form Type)

**SABA CAPITAL INCOME & OPPORTUNITIES FUND**

(Exact Name of Registrant as Specified in its Charter)

Table 1: Newly Registered and Carry Forward Securities

---

| | | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
|  | **Security Type** | **Security**<br> **Class**<br> **Title** | **Fee Calculation or**<br> **Carry Forward Rule** | **Amount Registered** | **Proposed Maximum Offering Price Per Unit** | **Maximum Aggregate Offering**<br> **Price** | **Fee**<br> **Rate** | **Amount of Registration Fee** | **Carry Forward Form Type** | **Carry Forward**<br> **File**<br> **Number** | **Carry Forward Initial effective**<br> **date** | **Filing**<br> **Fee Previously Paid In Connection with**<br> **Unsold Securities**<br> **to be Carried Forward** |
| &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities | &nbsp;&nbsp;&nbsp;Newly Registered Securities |
| &nbsp;&nbsp;&nbsp;Fees to Be Paid  | Equity | Common Stock | 457(a)(1) | 14875777 | $8.05 | $119750000 (1) | $153.10 | $18333.73(2) |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fees to Be Paid | Equity | Rights to<br> Purchase Shares of Common<br> Stock(3) |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Fees Previously Paid | Equity | Common Stock | 457(o) |  |  | $1000000 | $153.10 | $153.10(4) |  |  |  |  |
|  | Equity | Rights to<br> Purchase Shares of Common<br> Stock(3) |  |  |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities | &nbsp;&nbsp;&nbsp;Carry Forward Securities |
| &nbsp;&nbsp;&nbsp;Total Offering Amounts | &nbsp;&nbsp;&nbsp;Total Offering Amounts | &nbsp;&nbsp;&nbsp;Total Offering Amounts | &nbsp;&nbsp;&nbsp;Total Offering Amounts | 15000000 |  | $120750000 |  | $18486.83 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Fees Previously Paid | &nbsp;&nbsp;&nbsp;Total Fees Previously Paid | &nbsp;&nbsp;&nbsp;Total Fees Previously Paid | &nbsp;&nbsp;&nbsp;Total Fees Previously Paid | &nbsp;&nbsp;&nbsp;Total Fees Previously Paid |  |  |  | $153.10 |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Total Fee Offsets | &nbsp;&nbsp;&nbsp;Total Fee Offsets | &nbsp;&nbsp;&nbsp;Total Fee Offsets | &nbsp;&nbsp;&nbsp;Total Fee Offsets | &nbsp;&nbsp;&nbsp;Total Fee Offsets |  |  |  |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;Net Fee Due | &nbsp;&nbsp;&nbsp;Net Fee Due | &nbsp;&nbsp;&nbsp;Net Fee Due | &nbsp;&nbsp;&nbsp;Net Fee Due | &nbsp;&nbsp;&nbsp;Net Fee Due |  |  |  | $18333.73 |  |  |  |  |

---

(1) The Registrant is relying on Rule 457(c) under
 the Securities Act of 1933 to calculate the registration fee. The Maximum Aggregate Offering Price is estimated solely for
 the purpose of determining the registration fee in accordance with Rule 457(c) under the Securities Act of 1933 based on the
 average of the high and low sales prices of the shares of common stock on September 15, 2025, as reported on the New York
 Stock Exchange. The proposed maximum offering price per security will be determined, from time to time, by the Registrant
 in connection with the sale by the Registrant of the securities registered under this Registration Statement.

(2) Amount represents $153.10 previously paid to
 register $1,000,000 of Common Shares, plus $18,333.73 to register the additional $119,750,000 of Common Shares registered
 hereby.

(3) No separate consideration will be received by
 the Registrant. Any shares issued pursuant to an offering of rights to purchase shares of common stock, including any shares
 issued pursuant to an over-subscription privilege or a secondary over-subscription privilege, will be shares registered under
 this Registration Statement.

(4) The Registrant previously paid $153.10 in connection
 with the filing of the Registrant's Registration Statement on Form N-2 (File No. 333-288532) with the Securities
 and Exchange Commission on July 3, 2025.

N/A N/A —

## Ex-99.(T)

**[Saba Capital Income & Opportunities Fund N -2/A](saba-n2a_091825.htm)**

**Exhibit (t)**

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person' behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a003.jpg) | Trustee | July 14, 2025 |
| Anatoly Nakum |  |  |

---

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a004.jpg) | Trustee | July 14, 2025 |
| Andrew Kellerman |  |  |

---

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a005.jpg) | Trustee | July 14, 2025 |
| Frederic Gabriel |  |  |

---

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a006.jpg) | Trustee | July 14, 2025 |
| Garry Khasidy |  |  |

---

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a007.jpg) | Trustee | July 14, 2025 |
| Karen Caldwell |  |  |

---

**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

---

| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a008.jpg) | Trustee | July 14, 2025 |
| Ketu Desai |  |  |

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**POWER OF ATTORNEY**

The person whose signature appears below hereby appoints Michael D'Angelo and David Han and each of them, any of whom may act without the joinder of the others, as such person's attorney-in-fact to sign and file on such person's behalf individually and in the capacity stated below such registration statements, amendments, post-effective amendments, exhibits, applications and other documents with the Securities and Exchange Commission or any other regulatory authority as may be desirable or necessary in connection with the public offering of securities of Saba Capital Income & Opportunities Fund II.

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| | | |
|:---|:---|:---|
| Signature | Title | Date |
| ![](sabab2a10.jpg) | Trustee | July 14, 2025 |
| Mark Hammitt |  |  |

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