Alphafixe Capital Inc

Item 5 – Fees and Compensation

The specific manner in which fees are charged by AlphaFixe is established in a written
agreement between AlphaFixe and the client. Our basic scaled fee schedule is as followed:

Annual Management fees for the Bank Loan Product
 Assets                                                           Annual Fees
 Between 0 and $ 50 000 000                                          0.65 %
 Between $ 50 000 001 and $ 100 000 000                               0.55%
 Between $100 000 001 and $ 200 000 000                               0.30%
 Above $ 200 000 000                                                 0.10 %

{S0933192.2}                                    {S0933192.2}                               5

Fees Generally

The fees set forth above are invoiced to and paid directly by the client. The calculation of
the management fees is performed by multiplying the annual fee rate by the average daily
market value of the portfolio. The management fees are invoice on a quarterly basis
representing one quarter of the annual management fees. The clients are not permitted to
pay fees in advance. Fees are generally negotiable for mandates greater than $100 million.

AlphaFixe does not accept compensation for the sale of securities or other investment
products, including asset-based sales charges or service fees from the sale of mutual funds.

Item 7 - Types of Clients

AlphaFixe provides discretionary investment services to pension and profit sharing plans
(other than plan participants), state or municipal government entities, charitable
organizations, foundations and endowments, private investment funds, other pooled
investment vehicles, other financial institutions and high net worth individuals.