PERAC Approval Date: 11/17/10
Investment/Supplemental Regulation
Regulation Number 16.08: The Braintree Retirement Board is authorized to invest in Lexington Capital Partners VII. The Manager will comply with 16.03(2), with the exception of the terms listed in this supplemental regulation. The provision pertaining to indemnification in 16.02(5) will not apply to this investment. To the extent that it provides annual client reviews and key person notification under the terms of its operating agreement, the Manager is exempted from 840 CMR 16.07(2) and (4). To the extent it follows the fiduciary standards set forth in the operating agreement, the Manager is exempted from any provision of 17.02, 17.03, and 17.04 that may be deemed to conflict with this. The Manager will not engage in any of the Prohibited Transactions set forth in 21.01 and the provisions of this section are not applicable to any of the fund’s underlying investments.
PERAC Approval Date: 04/10/2003
Investment/Supplemental Regulation
Regulation Number 17.04 (6): The Braintree Retirement Board may enter into a contract with Eubel Brady & Suttman Asset Management and the trading activities of that firm shall not be construed as violating Investment Regulation 17.04 (6). While there may be some instances where some trades executed on behalf of the Board do not have priority over those executed for the firm’s interests, there will be no instances where the firm’s interests have priority over those of the Board. The requirement that the Board be given adequate opportunity to act on a recommendation by the manager before the firm acts on its own behalf is of limited practicality since the Board will be giving the manager discretionary authority to execute trades based on their professional judgment. In summary, the Board sees no substantial basis to question whether EBS will be in violation of the fundamental requirement that “personal transactions do not operate adversely to the board’s interest.”