Gresham Capital CLO IV B.V. - Irish Stock Exchange

managed by a collateral manager of an existing CLO Security in the Portfolio at the time of
acquisition by the Issuer;
(xii) it is not a PIK Security for which interest payable thereon is then currently being deferred or
capitalised;
(c) with respect of the acquisition of any Collateral Debt Security after the Target Date, each of the
following requirements must be satisfied:
(i) no Mezzanine Loans, Second Lien Loans, CLO Securities or Special Debt Securities may be
purchased if, following such purchase, more than 12.5 per cent. of the Maximum Investment
Amount will consist of Mezzanine Loans, Second Lien Loans, CLO Securities and Special Debt
Securities;
(ii) no CLO Securities may be purchased if, following such purchase, more than 5 per cent. of the
Maximum Investment Amount will consist of CLO Securities;
(iii) no Special Debt Securities may be purchased if, following such purchase, more than 5 per cent. of
the Maximum Investment Amount will consist of Special Debt Securities;
(iv) no Synthetic Security or Participations may be purchased if, following such purchase, the
aggregate Principal Balance of Synthetic Securities, Participations and Collateral Debt Securities
the subject of a Securities Lending Agreement would be more than 20 per cent. of the Maximum
Investment Amount;
(v) no Collateral Debt Security may be acquired which consists of an obligation in respect of which
the obligor is incorporated or established under the laws of the United States of America or any
state of the United States of America if, following such purchase, more than 20 per cent. of the
Maximum Investment Amount will consist of obligations in respect of which the obligors are
incorporated or established under the laws of the United States of America or any state of the
United States of America;
(vi) unless Rating Agency Confirmation from S&P has been received, no Collateral Debt Security
which is a Participation or Synthetic Security with a counterparty rated less than “A-1+” by S&P,
or issued by an obligor incorporated or established under the laws of a country rated less than
“AA” by S&P may be purchased if, following such purchase, more than 20 per cent. of the
Maximum Investment Amount will consist of bivariate risk exposures to:
(A) Participations with Selling Institutions rated less than “A-1+” by S&P;
(B) Synthetic Securities with Synthetic Securities Obligors rated less than “A-1+” by S&P;
(C) Collateral Debt Securities which are loaned pursuant to any Securities Lending Agreement
with Securities Lending Counterparties rated less than “A-1+” by S&P; and
(D) Collateral Debt Securities in respect of which the obligors are incorporated or established
under the laws of any countries rated less than “AA” by S&P;
(vii) no Sterling Collateral Debt Security may be purchased if, following such purchase, more than 25
per cent. of the Maximum Investment Amount (the “Sterling Limit”) will consist of Sterling
Collateral Debt Securities, provided that (1) a Sterling Collateral Debt Security the subject of a
perfect asset swap pursuant to a Hedge Agreement swapping all Sterling amounts into Euro
amounts shall be treated as a Euro Collateral Debt Security instead of a Sterling Collateral Debt
Security for the purposes of this paragraph (c)(vii) and (2) the Sterling Limit will be reduced from
time to time by an amount equal to the Cumulative Sterling Realised Losses from time to time;
(viii) no Sterling Collateral Debt Security or Non-Euro Collateral Debt Security denominated in Sterling
may be purchased if, following such purchase, more than 35 per cent. of the Maximum Investment
Amount (the “Aggregate Sterling Limit”) will consist of Sterling Collateral Debt Securities and
Non-Euro Collateral Debt Securities denominated in Sterling, provided that the Aggregate Sterling
Limit will be reduced from time to time by an amount equal to the Cumulative Sterling Realised
Losses from time to time;
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