Draft ISDA Schedule/Paragarph 13 for Hedge Funds

Attached is a draft template for the Schedule and Paragraph 13 of a ISDA
Master Agreement to be use by hedge funds. The document has been reviewed by
Cadwalader and contains a significantly enlarged range of representations and
covenants of both the hedge fund and the investment manager. I have not
included in this draft the concept of an investment manager letter which was
suggested by Cadwalader and which can be used when the investment manager
does not agree to be a party to the ISDA Master Agreement. I would
appreciate it if each of you would take a look at the document and provide me
with any comments you have. I am meeting with David Mitchell of Cadwalader
on Monday of next week. I also plan to walk through the base document with
Caroline Abramo and the others in New York on Sunday so that they can better
understand why the ISDA for hedge funds is more complex than normal ISDAs.
Finally, I am also attaching a list that I have prepared of the major changes
that have been made to the standard ISDA to create the hedge fund template.
Thanks.

Frank