What does ‘useLegacyV2RuntimeActivationPolicy’ do in the .NET 4 config?

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While converting a project that used SlimDX, and therefore has unmanaged code, to .NET 4.0 I ran into the following error:

Mixed mode assembly is built against version ‘v2.0.50727’ of the runtime and cannot be loaded in the 4.0 runtime without additional configuration information.

Googling around gave me the solution, which is to add this to the applications config:

<configuration>
  <startup useLegacyV2RuntimeActivationPolicy="true">
    <supportedRuntime version="v4.0"/>
  </startup>
</configuration>

My question is, what is the useLegacyV2RuntimeActivationPolicy doing? I can’t find any documentation about it.

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