Merger Details:

Effective June 29, 2007, Fairway Investment Grade Income Fund merged with Fairway Diversified Income and Growth Trust. Fairway Diversified Income and Growth Trust is the surviving fund. Fairway Investment Grade Income Fund holders received in exchange, 0.678498 units of Fairway Diversified Income and Growth Trust for each unit of Fairway Investment Grade Income Fund previously held. This was not a tax-deferred rollover, therefore, units of Fairway Diversified Income and Growth Trust received by former holders of Fairway Investment Grade Income Fund should be entered as a purchase using a value equal to the settlement amount of the disposition of the Fairway Investment Grade Income Fund units previously held, and using a purchase settlement date of June 29, 2007. The fund manager has advised that the net asset value of Fairway Diversified Income and Growth Trust on June 29, 2007 was $12.0340 per unit.