Filogix Inc.

ACQUISITION

(Amount Undisclosed)

Subordinated Debt

McKenna Gale provided subordinated debt to assist US private equity group Monitor Clipper Partners in its acquisition of Filogix Inc.

Based in Toronto, Ontario, Filogix markets residential software solutions that connect mortgage brokers, captive sales forces of Schedule I banks, mortgage lenders, and providers of ancillary mortgage services through a proprietary network.

McKenna Gale was chosen based on its ability to provide a flexible financing solution, additional debt or equity capital for future growth, and local market insights to Monitor Clipper.

On June 15, 2006, Davis + Henderson Income Fund acquired Filogix from Monitor Clipper Partners and Filogix management for approximately $212 million. As part of the transaction McKenna Gale's subordinated loan was repaid. Filogix was a successful investment and generated a substantial return for the investors.