E-Delivery

3. Trust funds: Trust liabilities amounting to $179,590 (February 28, 2013 - $nil) have not been included in these financial statements. Cash held in trust on behalf of third parties are for subscriptions to preferred shares in the Fund that have yet to be accepted. e Fund holds third party assets in a separate bank account to prevent commingling with its own assets. ese liabilities are matched by an equal amount of funds on deposit in trust at a financial institution. 4. Shareholders' equity: e Fund is authorized to issue an unlimited number of Class A voting common shares, an unlimited number of Class B non-voting common shares, an unlimited number of Class A preferred shares and an unlimited number of Class B preferred shares. All the classes of preferred shares and preferred shares within a class rank equally with respect to dividends, rank senior to the common shares of the Fund and are redeemable at the option of the Fund's board of directors. e preferred shares are redeemable by the Fund for the net asset value of each particular preferred share plus any declared and unpaid dividends. e common shares have a nominal value and are owned by certain shareholders and officers of the Fund Manager. Class A and Class B preferred shares are privately held and there is no market through which these shares may be sold. e Fund may issue Class A and Class B preferred shares in the future in accordance with securities legislation. Preferred and common shares issued and outstanding changed as follows: 2014 Class A preferred shares Class B preferred shares Common shares Shares outstanding, March 1, 2013 1,193,725 127,172 400 Issued 1,337,310 1,141,143 - Issued under share based compensation plan 500 - - Redeemed (69,413) (900) - Issued under dividend reinvestment plan 74,263 17,377 - Shares outstanding, February 28, 2014 2,536,385 1,284,792 400 2013 Class A preferred shares Class B preferred shares Common shares Shares outstanding, March 1, 2012 815,674 - 400 Issued 565,509 127,124 - Issued under share based compensation plan 500 - - Redeemed (224,674) - - Issued under dividend reinvestment plan 36,716 48 - Shares outstanding, February 28, 2013 1,193,725 127,172 400 (a) Redemptions: Subject to certain restrictions, Class A preferred shareholders may on a monthly basis request redemption of any or all of their outstanding shares by providing 30 days advance notice to the Fund. Redemptions of Class A preferred shares are completed without any fees. Class B preferred shares are redeemable monthly on the same terms and conditions as the Class A preferred shares and in the first five years from the date of subscription are subject to early redemption fees payable to the Fund Manager. Redemption of Class B preferred shares requested after five years from the date of subscription are completed without any early redemption fees. 45

• Cover