CAYMAN ISLANDS

GRAND COURT

COMPANIES – INVESTMENT FUNDS – CONSTITUTIONAL DOCUMENTS – SIDE LETTERS – PRIVITY OF CONTRACT

Fintan Master Fund (“Fintan”) invested in Medley Opportunity Fund (the “Fund”) through its nominee, Nautical Nominees (“Nautical”). Nautical was the registered shareholder. Fintan had, in its own right and name, entered into an agreement (the “Side Letter”) with the Fund. The Side Letter provided that all distributions to Fintan upon redemption, liquidation or otherwise shall be paid in cash and, if cash is not immediately available, through securities held in a separate liquidation account on Fintan’s behalf, the proceeds of which will be distributed to Fintan in cash as such securities are liquidated.

During the financial crisis the Fund faced a run on redemptions and presented its investors with two successive restructuring plans. In both cases, Nautical, on behalf of Fintan, elected to stay in its share class, rescind all previous redemption requests, and benefit from orderly payouts through quarterly distributions.

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