BlackRock New Energy (Ordinary Share) BRNE

Objective:

Management Contract & Fees:

The management agreement is terminable on one years notice. Management fee at the annual rate of 1% of gross assets. An annual performance fee is also payable of 15% of net assets above a threshold of either 10% p.a. or the MSCI Developed Markets Index (capital return in Sterling), whichever of the two is higher. The performance related fee will be capped at 1.5% of net assets at the year end and will only be paid if net asset value at the year end is higher than the net asset value as at 28-Apr-06 and the NAV per share at the start of the year. The secretarial and administration agreement is subject to one months notice by the Company. A fee of GBP 75,000 p.a. is payable should the Companys gross assets not exceed GBP 50m at the beginning of the financial year, or GBP 100,000 p.a. if the gross assets exceed that level. The administration fee is increased annually in line with the Retail Price Index. The Custodian will receive a fee payable at rates dependent on the number of trades affected and location of securities held.