shall (i) disclose to the Dealer Manager any potentially suspicious or unusual activity detected as part of the CIP being performed in connection with the offering or sale of Shares pursuant to this Agreement in order to enable the Dealer Manager to file a suspicious activity report (“SAR”), as appropriate based on the Dealer Manager’s judgment, and (ii) provide its books and records relating to its performance of CIP to the SEC, FINRA or authorized law enforcement agencies at their request. In addition, the Selected RIA represents that each of its custodian and the Broker of Record/Custodian (if different legal entities) have an AML Program and OFAC Program which complies with the requirements set forth in this Section X and that Selected RIA’s clients are subject to the requirements contained in such programs.
The Selected RIA shall, upon request by the Dealer Manager, provide an annual certification to the Dealer Manager that, as of the date of such certification, (1) it has implemented and is continuing to implement its AML Program and its OFAC Program, (2) its AML Program and its OFAC Program are consistent with the AML Rules and OFAC requirements, (3) it is currently in compliance with all AML Rules and OFAC requirements, and (4) that the Selected RIA shall perform all of the specified requirements for Customer Identification Programs as required by 31 C.F.R. § 1023.220.
| XI. | Certificate of Compliance |
(a) Selected RIA acknowledges that the submission of an order for Shares or a request for the Company or the Dealer Manager to provide any Offering Materials shall constitute an agreement by Selected RIA that each of the representations and warranties of Selected RIA under Sections V, VI, IX and X of this Agreement continue to be true and accurate in all respects.
(b) Selected RIA shall, during the course of the Offering, on an annual basis, provide to the Company and/or the Dealer Manager a written certificate, in substantially the form of Exhibit B (the “Compliance Certificate”), confirming that, to the best of its knowledge, each of the representations and warranties of Adviser under Sections V, VI, IX and X hereof continue to be true and accurate in all respects. The Dealer Manager or the Company shall be entitled to conduct such additional supplemental due diligence inquiries with respect to Selected RIA’s compliance with the subject matter of the representations and warranties contained in the Compliance Certificate as the Dealer Manager or the Company may deem necessary or desirable.
| XII. | Disclosure Review; Confidentiality of Information |
Selected RIA agrees that it shall have reasonable grounds to believe, based on the information made available to it through the Prospectus or other materials, that all material facts are adequately and accurately disclosed in the Prospectus and provide a basis for evaluating the Shares. In making this determination, Selected RIA shall evaluate, at a minimum, items of compensation, physical properties, tax aspects, financial stability and experience of the sponsor, conflicts of interest and risk factors, and appraisals and other pertinent reports. If Selected RIA relies upon the results of any inquiry conducted by a member or members of FINRA, Selected RIA shall have reasonable grounds to believe that such inquiry was conducted with due care, that the member or members conducting or directing the inquiry consented to the disclosure of the results of the inquiry and that the person who participated in or conducted the inquiry is not the Dealer Manager or a sponsor or an affiliate of the sponsor of the Company.
It is anticipated that (i) Selected RIA and Selected RIA’s officers, directors, managers, employees, owners, members, partners, home office diligence personnel or other agents of Selected RIA that are conducting a due diligence inquiry on behalf of Selected RIA and (ii) persons or committees, as the case may be, responsible for determining whether Selected RIA will participate in the Offering ((i) and (ii) are collectively, the “Diligence Representatives”) either have previously or will in the future have access to certain Confidential Information (defined below) pertaining to the Company, the Dealer Manager, the Advisor, or their respective affiliates. For purposes hereof, “Confidential Information” shall mean and include: (i) trade secrets concerning the business and affairs of the Company, the Dealer Manager, the Advisor, or their respective affiliates; (ii) confidential data,know-how, current and planned research and development, current and planned methods and processes, marketing lists or strategies, slide presentations, business plans, however documented, belonging to the Company, the Dealer Manager, the Advisor, or their respective affiliates; (iii) information concerning the business and affairs of the Company, the Dealer Manager, the Advisor, or their respective affiliates (including, without limitation, historical financial statements, financial projections and budgets, investment-related information, models, budgets, plans, and market studies, however documented; (iv) any
10