Company: OXLCZ
Filing Date: 2025-02-19
Form Type: 424B2
Source: 0001213900-25-015045
Chunk: 106

Company: Oxford Lane Capital Corp.
Filing Date: 2025-02-19
Form: 424B2
Chunk 106
---
 meant to provide Oxford Lane Management with 20% of our pre -incentivefee net investment income as if a hurdle did not apply if this net investment income exceeds 2.1875% in any calendar quarter; and •20% of the amount of our pre -incentivefee net investment income, if any, that exceeds 2.1875% in any calendar quarter (8.75% annualized) is payable to Oxford Lane Management (once the hurdle is reached and the catch -upis achieved, 20% of all pre -incentivefee investment income thereafter is allocated to Oxford Lane Management). The following is a graphical representation of the calculation of the income -relatedportion of the incentive fee: Quarterly Incentive Fee Based on Net Investment Income Pre-incentive fee net investment income
(expressed as a percentage of the value of net assets) Percentage of pre-incentive fee net investment income allocated to the Oxford Lane Management These calculations are appropriately pro -ratedfor any period of less than three months and adjusted for any share issuances or repurchases during the relevant quarter. You should be aware that a rise in the general level of interest rates can be expected to lead to higher interest rates applicable to our debt investments. Accordingly, an increase in interest rates would make it easier for us to meet or exceed the incentive fee hurdle rate and may result in a substantial increase of the amount of incentive fees payable to Oxford Lane Management with respect to pre -incentivefee net investment income. No incentive fee is payable to Oxford Lane Management on realized capital gains. In addition, the amount of the incentive fee is not affected by any realized or unrealized losses that we may suffer. Examples of Quarterly Incentive Fee Calculation (amounts expressed as a percentage of the value of net assets, and are not annualized) Alternative 1: Assumptions Investment income (including interest, dividends, fees, etc.) = 1.25% Hurdle rate (1)= 1.75% Management fee (2)= 0.5% Other expenses (legal, accounting, custodian, transfer agent, etc.) (3)= 0.20% Pre -incentivefee net investment income (investment income-(management fee + other expenses)) = 0.55% Pre -incentivenet investment income does not exceed hurdle rate, therefore there is no incentive fee. 33 Alternative 2: Assumptions Investment income (including interest, dividends, fees, etc.) =