<PAGE> PAGE 1
000 B000000 11/30/96
000 C000000 0000851169
000 D000000 N
000 E000000 NF
000 F000000 Y
000 G000000 N
000 H000000 N
000 I000000 3.0.a
000 J000000 A
001 A000000 THE HYPERION TOTAL RETURN FUND, INC.
001 B000000 811-5820
001 C000000 2129808400
002 A000000 520 MADISON AVENUE
002 B000000 NEW YORK
002 C000000 NY
002 D010000 10022
002 D020000 4213
003 000000 N
004 000000 N
005 000000 N
006 000000 N
007 A000000 N
007 B000000 0
007 C010100 1
007 C010200 2
007 C010300 3
007 C010400 4
007 C010500 5
007 C010600 6
007 C010700 7
007 C010800 8
007 C010900 9
007 C011000 10
008 A000001 HYPERION CAPITAL MANAGEMENT, INC.
008 B000001 A
008 C000001 801-34605
008 D010001 NEW YORK
008 D020001 NY
008 D030001 10022
008 D040001 4213
008 A000002 PACHOLDER ASSOCIATES INC.
008 B000002 S
008 C000002 801-20956
008 D010002 CINCINNATI
008 D020002 OH
008 D030002 45236
010 A000001 PRINCETON ADMINISTRATORS, L.P.
010 C010001 PRINCETON
010 C020001 NJ
010 C030001 08540
011 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
<PAGE> PAGE 2
011 B000001 8-7221
011 C010001 NEW YORK
011 C020001 NY
011 C030001 10281
011 A000002 PRUDENTIAL-BACHE SECURITIES INC.
011 B000002 8-0000
011 C010002 NEW YORK
011 C020002 NY
011 C030002 10292
011 A000003 THOMSON, MCKINNON SECURITIES INC.
011 B000003 8-14450
011 C010003 NEW YORK
011 C020003 NY
011 C030003 10005
011 A000004 PIPER, JAFFRAY & HOPWOOD INCORPORATED
011 B000004 8-15204
011 C010004 MINNEAPOLIS
011 C020004 MN
011 C030004 55440
012 A000001 BOSTON EQUISERVE L.P.
012 B000001 85-00
012 C010001 CANTON
012 C020001 MA
012 C030001 02021
013 A000001 DELOITTE & TOUCHE LLP
013 B010001 NEW YORK
013 B020001 NY
013 B030001 10281
014 A000001 HYPERION DISTRIBUTORS, INC.
014 B000001 8-46861
014 A000002 RANIERI & CO., INC.
014 B000002 8-39678
015 A000001 STATE STREET BANK & TRUST COMPANY
015 B000001 C
015 C010001 BOSTON
015 C020001 MA
015 C030001 02116
015 E010001 X
018 000000 Y
019 A000000 Y
019 B000000 10
019 C000000 HYPERIONXX
020 A000001 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
020 B000001 13-5674085
020 C000001 3
020 C000002 0
020 C000003 0
020 C000004 0
020 C000005 0
020 C000006 0
020 C000007 0
<PAGE> PAGE 3
020 C000008 0
020 C000009 0
020 C000010 0
021 000000 3
022 A000001 STATE STREET BANK AND TRUST COMPANY, N.A.
022 B000001 04-1867445
022 C000001 546053
022 D000001 0
022 A000002 GREENWICH CAPITAL MARKETS, INC.
022 B000002 13-2697091
022 C000002 208805
022 D000002 142445
022 A000003 UBS SECURITIES, INC.
022 B000003 13-2932996
022 C000003 242752
022 D000003 34424
022 A000004 DONALDSON, LUFKIN & JENRETTE SECURITIES CORP.
022 B000004 13-2741729
022 C000004 121243
022 D000004 119027
022 A000005 MERRILL LYNCH, PIERCE, FENNER & SMITH INC.
022 B000005 13-5674085
022 C000005 92534
022 D000005 46504
022 A000006 LEHMAN BROTHERS, INC.
022 B000006 13-2518466
022 C000006 58432
022 D000006 71203
022 A000007 SALOMON BROTHERS INC.
022 B000007 13-3082694
022 C000007 59116
022 D000007 63311
022 A000008 MORGAN STANLEY & CO. INCORPORATED
022 B000008 13-2655998
022 C000008 42810
022 D000008 37918
022 A000009 SMITH BARNEY, INC.
022 B000009 13-1912900
022 C000009 24983
022 D000009 44694
022 A000010 PAINEWEBBER INCORPORATED
022 B000010 13-2638166
022 C000010 31278
022 D000010 34579
023 C000000 1641753
023 D000000 809931
024 000000 N
025 D000001 0
025 D000002 0
025 D000003 0
025 D000004 0
<PAGE> PAGE 4
025 D000005 0
025 D000006 0
025 D000007 0
025 D000008 0
026 A000000 N
026 B000000 Y
026 C000000 Y
026 D000000 Y
026 E000000 N
026 F000000 N
026 G010000 N
026 G020000 N
026 H000000 N
027 000000 N
028 A010000 0
028 A020000 0
028 A030000 0
028 A040000 0
028 B010000 0
028 B020000 0
028 B030000 0
028 B040000 0
028 C010000 0
028 C020000 0
028 C030000 0
028 C040000 0
028 D010000 0
028 D020000 0
028 D030000 0
028 D040000 0
028 E010000 0
028 E020000 0
028 E030000 0
028 E040000 0
028 F010000 0
028 F020000 0
028 F030000 0
028 F040000 0
028 G010000 0
028 G020000 0
028 G030000 0
028 G040000 0
028 H000000 0
030 A000000 0
030 B000000 0.00
030 C000000 0.00
031 A000000 0
031 B000000 0
032 000000 0
033 000000 0
035 000000 0
<PAGE> PAGE 5
036 B000000 0
038 000000 0
042 A000000 0
042 B000000 0
042 C000000 0
042 D000000 0
042 E000000 0
042 F000000 0
042 G000000 0
042 H000000 0
043 000000 0
044 000000 0
045 000000 Y
046 000000 N
047 000000 Y
048 000000 0.650
048 A010000 0
048 A020000 0.000
048 B010000 0
048 B020000 0.000
048 C010000 0
048 C020000 0.000
048 D010000 0
048 D020000 0.000
048 E010000 0
048 E020000 0.000
048 F010000 0
048 F020000 0.000
048 G010000 0
048 G020000 0.000
048 H010000 0
048 H020000 0.000
048 I010000 0
048 I020000 0.000
048 J010000 0
048 J020000 0.000
048 K010000 0
048 K020000 0.000
049 000000 N
050 000000 N
051 000000 N
052 000000 N
053 A000000 N
054 A000000 Y
054 B000000 Y
054 C000000 Y
054 D000000 N
054 E000000 N
054 F000000 N
054 G000000 N
054 H000000 Y
<PAGE> PAGE 6
054 I000000 N
054 J000000 Y
054 K000000 N
054 L000000 N
054 M000000 Y
054 N000000 N
054 O000000 N
055 A000000 N
055 B000000 N
056 000000 Y
057 000000 N
058 A000000 N
059 000000 Y
060 A000000 Y
060 B000000 Y
061 000000 0
062 A000000 Y
062 B000000 0.0
062 C000000 0.0
062 D000000 0.1
062 E000000 0.0
062 F000000 0.0
062 G000000 0.0
062 H000000 0.0
062 I000000 0.0
062 J000000 0.0
062 K000000 0.0
062 L000000 0.0
062 M000000 39.5
062 N000000 22.9
062 O000000 0.0
062 P000000 5.8
062 Q000000 72.8
062 R000000 0.0
063 A000000 0
063 B000000 8.0
064 A000000 N
064 B000000 N
066 A000000 N
067 000000 N
068 A000000 N
068 B000000 N
069 000000 N
070 A010000 Y
070 A020000 Y
070 B010000 N
070 B020000 N
070 C010000 Y
070 C020000 N
070 D010000 N
070 D020000 N
<PAGE> PAGE 7
070 E010000 Y
070 E020000 Y
070 F010000 N
070 F020000 N
070 G010000 Y
070 G020000 N
070 H010000 N
070 H020000 N
070 I010000 N
070 I020000 N
070 J010000 Y
070 J020000 Y
070 K010000 Y
070 K020000 N
070 L010000 Y
070 L020000 Y
070 M010000 N
070 M020000 N
070 N010000 Y
070 N020000 N
070 O010000 Y
070 O020000 Y
070 P010000 Y
070 P020000 N
070 Q010000 N
070 Q020000 N
070 R010000 Y
070 R020000 N
071 A000000 829200
071 B000000 824313
071 C000000 363774
071 D000000 227
072 A000000 12
072 B000000 32288
072 C000000 0
072 D000000 0
072 E000000 0
072 F000000 1655
072 G000000 509
072 H000000 0
072 I000000 78
072 J000000 75
072 K000000 0
072 L000000 91
072 M000000 45
072 N000000 32
072 O000000 0
072 P000000 5968
072 Q000000 0
072 R000000 60
072 S000000 22
<PAGE> PAGE 8
072 T000000 0
072 U000000 0
072 V000000 0
072 W000000 177
072 X000000 8712
072 Y000000 0
072 Z000000 23576
072AA000000 11532
072BB000000 10517
072CC010000 0
072CC020000 4035
072DD010000 22292
072DD020000 0
072EE000000 0
073 A010000 0.9000
073 A020000 0.0000
073 B000000 0.0000
073 C000000 0.0000
074 A000000 0
074 B000000 261
074 C000000 0
074 D000000 368051
074 E000000 0
074 F000000 0
074 G000000 0
074 H000000 0
074 I000000 0
074 J000000 9013
074 K000000 0
074 L000000 4605
074 M000000 16
074 N000000 381946
074 O000000 11957
074 P000000 184
074 Q000000 0
074 R010000 108347
074 R020000 0
074 R030000 0
074 R040000 345
074 S000000 0
074 T000000 261113
074 U010000 24762
074 U020000 0
074 V010000 10.55
074 V020000 0.00
074 W000000 0.0000
074 X000000 19326
074 Y000000 125248
075 A000000 0
075 B000000 255447
076 000000 9.38
<PAGE> PAGE 9
077 A000000 Y
077 B000000 Y
077 Q010000 Y
077 Q020000 Y
077 Q030000 Y
078 000000 N
080 A000000 RELIANCE INSURANCE COMPANY
080 C000000 8000
081 A000000 Y
081 B000000 7
082 A000000 N
082 B000000 0
083 A000000 N
083 B000000 0
084 A000000 N
084 B000000 0
085 A000000 Y
085 B000000 N
086 A010000 0
086 A020000 0
086 B010000 20
086 B020000 173
086 C010000 0
086 C020000 0
086 D010000 0
086 D020000 0
086 E010000 0
086 E020000 0
086 F010000 0
086 F020000 0
087 A010000 COMMOM STOCK
087 A020000 449145101
087 A030000 HTR
088 A000000 N
088 B000000 N
088 C000000 N
088 D000000 N
SIGNATURE JOSEPH W. SULLIVAN
TITLE TREASURER
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000851169
<NAME> THE HYPERION TOTAL RETURN FUND INC.
<S> <C>
<PERIOD-TYPE> 12-MOS
<FISCAL-YEAR-END> NOV-30-1996
<PERIOD-END> NOV-30-1996
<INVESTMENTS-AT-COST> 363418871
<INVESTMENTS-AT-VALUE> 368311546
<RECEIVABLES> 13617729
<ASSETS-OTHER> 16381
<OTHER-ITEMS-ASSETS> 0
<TOTAL-ASSETS> 381945656
<PAYABLE-FOR-SECURITIES> 11957144
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 108875098
<TOTAL-LIABILITIES> 120832242
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 276471563
<SHARES-COMMON-STOCK> 24761615
<SHARES-COMMON-PRIOR> 24781615
<ACCUMULATED-NII-CURRENT> 2193872
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> (22444696)
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 4892675
<NET-ASSETS> 261113414
<DIVIDEND-INCOME> 0
<INTEREST-INCOME> 32288475
<OTHER-INCOME> 0
<EXPENSES-NET> 8712054
<NET-INVESTMENT-INCOME> 23576421
<REALIZED-GAINS-CURRENT> 1014684
<APPREC-INCREASE-CURRENT> (4034988)
<NET-CHANGE-FROM-OPS> 20556117
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (22291630)
<DISTRIBUTIONS-OF-GAINS> 0
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 0
<NUMBER-OF-SHARES-REDEEMED> 20000
<SHARES-REINVESTED> 0
<NET-CHANGE-IN-ASSETS> (1908613)
<ACCUMULATED-NII-PRIOR> 909081
<ACCUMULATED-GAINS-PRIOR> (23459380)
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 1654952
<INTEREST-EXPENSE> 5967949
<GROSS-EXPENSE> 8712054
<AVERAGE-NET-ASSETS> 255447258
<PER-SHARE-NAV-BEGIN> 10.61
<PER-SHARE-NII> 0.95
<PER-SHARE-GAIN-APPREC> (0.11)
<PER-SHARE-DIVIDEND> (0.90)
<PER-SHARE-DISTRIBUTIONS> 0
<RETURNS-OF-CAPITAL> 0
<PER-SHARE-NAV-END> 10.55
<EXPENSE-RATIO> 1.08
<AVG-DEBT-OUTSTANDING> 111560927
<AVG-DEBT-PER-SHARE> 4.50
</TABLE>
EXHIBIT 99 - IN REFERENCE TO ITEM 77.B
Deloitte & Touche, LLP
Two World Financial Center
New York, New York 10281-1414
Telephone: (212) 436-2000
INDEPENDENT AUDITORS' REPORT
To the Board of Directors and Shareholders of
The Hyperion Total Return Fund, Inc.:
In planning and performing our audit of the financial statements of The
Hyperion Total Return Fund, Inc. (the "Fund") for the year ended
November 30, 1996 (on which we have issued our report dated January 9,
1997), we considered its internal control structure, including
procedures for safeguarding securities, in order to determine our
auditing procedures for the purpose of expressing our opinion on the
financial statements and to comply with the requirements of Form N-SAR,
not to provide assurance on the internal control structure.
The management of the Fund is responsible for establishing and
maintaining an internal control structure. In fulfilling this
responsibility, estimates and judgments by management are required to
assess the expected benefits and related costs of internal control
structure policies and procedures. Two of the objectives of an internal
control structure are to provide management with reasonable, but not
absolute, assurance that assets are safeguarded against loss from
unauthorized use or disposition and that transactions are executed in
accordance with management's authorization and recorded properly to
permit preparation of financial statements in conformity with generally
accepted accounting principles.
Because of inherent limitations in any internal control structure,
errors or irregularities may occur and not be detected. Also,
projection of any evaluation of the structure to future periods is
subject to the risk that it may become inadequate because of changes in
conditions or that the effectiveness of the design and operation may
deteriorate.
Our consideration of the internal control structure would not
necessarily disclose all matters in the internal control structure that
might be material weaknesses under standards established by the American
Institute of Certified Public Accountants. A material weakness is a
condition in which the design or operation of the specific internal
control structure elements does not reduce to a relatively low level the
risk that errors or irregularities in amounts that would be material in
relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of
performing their assigned functions. However, we noted no matters
involving the internal control structure, including procedures for
safeguarding securities, that we consider to be material weaknesses as
defined above as of November 30, 1996.
This report is intended solely for the information and use of management
and the Securities and Exchange Commission.
January 9, 1997
EXHIBIT 10 - IN REFERENCE TO ITEM 77.Q3
ADMINISTRATION AGREEMENT
AGREEMENT made this 1st day of December, 1996 by and between The
Hyperion Total Return Fund, Inc., a Maryland corporation (hereinafter called
the "Fund"), and Hyperion Capital Management, Inc. (hereinafter called
"Administrator" or "HCM");
W I T N E S S E T H
WHEREAS, The Fund intends to engage in business as a closed-end
diversified management investment company and is registered as such under the
Investment Company Act of 1940, as amended (the "1940 Act"); and
WHEREAS, The Fund and Hyperion Capital Management, Inc. (the "Investment
Adviser") are entering into an Investment Advisory Agreement (the "Investment
Advisory Agreement") pursuant to which the Investment Adviser will provide
investment advice to the Fund and be responsible for the portfolio management
of the Fund; and
WHEREAS, The Fund desires to retain the Administrator to render
administrative services in the manner and on the terms and conditions hereafter
set forth; and
WHEREAS, The Administrator desires to be retained to perform services
on said terms and conditions.
NOW, THEREFORE, in consideration of the premises and the mutual
covenants hereinafter contained, the Fund and the Administrator agree as
follows:
1. Duties of the Administrator. The Fund hereby retains the
Administrator to act as administrator of the Fund, subject to the supervision
and direction of the Board of Directors of the Fund, as hereinafter set forth.
The Administrator shall perform or arrange for the performance of the following
administrative and clerical services: (i) maintain and keep the books and
records of the Fund as required by law or for the proper operation of the Fund;
(ii) prepare and, subject to approval by the Fund, file reports and other
documents required by U.S. Federal, state and other applicable laws and
regulations and by stock exchanges on which Fund shares are listed, including
proxy materials and periodic reports to Fund stockholders; (iii) respond to
inquiries from Fund shareholders; (iv) calculate and publish or arrange for
the calculation and publication of, the net asset value of the Fund's shares;
(v) oversee, and, as the Board may reasonably request or deem appropriate,
make reports and recommendations to the Board on, the performance of
administrative and professional services rendered to the Fund by others,
including its custodian, registrar, transfer agent, dividend disbursing agent
and dividend reinvestment plan agent, as well as accounting, auditing and other
services; (vi) provide the Fund with the services of persons competent to
perform the foregoing administrative and clerical functions; (vii) provide
the Fund with administrative office and data processing facilities; (viii)
arrange for payment of the Fund's expense; (ix) consult with the Fund's
officers, independent accountants, legal counsel, custodian, accounting agent
and transfer and dividend disbursing agent in establishing the accounting
policies of the Fund; (x) prepare such financial information and reports as
may be required by any banks from which the Fund borrows funds; and (xi)
provide such assistance to the investment adviser, the custodian and the Fund's
counsel and auditors as generally may be required to carry on properly the
business and operations of the Fund. The Fund agrees to cause the Investment
Adviser to deliver, on a timely basis, such information to the Administrator
as may be necessary or appropriate for the Administrator's performance of its
duties and responsibilities hereunder, including but not limited to, records of
transactions, valuation of investments in United States dollars (which may be
based on information provided by a pricing service) and shareholder reports and
expenses borne by the Fund, and the Administrator shall be entitled to rely on
the accuracy and completeness of such information in performing its duties
hereunder.
2. Expenses of the Administrator. The Administrator assumes and
shall pay for maintaining the staff and personnel necessary to perform its
obligations under this Agreement, and shall at its own expense, pay the
incremental Accounting Agent fees to the Custodian (currently estimated at
$3,000 per month), provide office space, facilities, equipment and necessary
personnel which it is obligated to provide under paragraph 1 hereof, except
that the Fund shall pay the expenses of legal counsel as provided in paragraph
4(b) of this Agreement. The Fund and the Investment Adviser assume and shall
pay or cause to be paid all other expenses of the Fund as set forth in the
Investment Advisory Agreement.
3. Compensation of the Administrator. For the services rendered
to the Fund by the Administrator pursuant to this Agreement, the Fund shall pay
to the Administrator on the first business day of each calendar month a fee for
the previous month at an annual rate equal to .20% of the Fund's average weekly
net assets. For the purpose of determining fees payable to the Administrator,
the net assets of the Fund shall mean the average weekly value of the total
assets of the Fund, minus the sum of accrued liabilities of the Fund and
accumulated dividends on any Preferred Shares issued by the Fund, but without
deducting the aggregate liquidation value of any outstanding Preferred Shares.
The value of the Fund's net assets shall be computed at the times and in the
manner specified in the Fund's registration statement on Form N-2, as amended
from time to time (the "Registration Statement"). Compensation by the Fund of
the Administrator shall commence on December 1, 1996. Upon termination of this
Agreement before the end of a month, the fee for such part of that month shall
be pro-rated according to the proportion that such period bears to the full
monthly period and shall be payable within seven (7) days after the date of
termination of this Agreement.
4. Limitation of Liability of the Administrator; Indemnification.
(a) The Administrator shall not be liable to the Fund or the
Investment Adviser for any error of judgment or mistake of law or for any loss
arising out of any act or omission by the Administrator in the performance of
its duties hereunder. Nothing herein contained shall be construed to protect
the Administrator against any liability to the Fund, its shareholders, the
Investment Adviser or any sub-investment adviser to which the Administrator
shall otherwise be subject by reason of willful misfeasance, bad faith, or
gross negligence in the performance of its duties, or by reckless disregard of
its obligations and duties hereunder.
(b) The Administrator may, with respect to questions of law, apply
for and obtain the advice and opinion of counsel to the Fund, at the expense of
the Fund, and with respect to the application of generally accepted accounting
principles or Federal tax accounting principles, apply for and obtain the
advice and opinion of the independent auditors of the Fund, at the expense of
the Fund. The Administrator shall be fully protected with respect to any
action taken or omitted by it in good faith in conformity with such advice or
opinion.
(c) The Fund agrees to indemnify and hold harmless the
Administrator from and against all charges, claims, expenses (including legal
fees) and liabilities reasonably incurred by the Administrator in connection
with the performance of its duties hereunder, except such as may arise from the
Administrators willful misfeasance, bad faith, gross negligence in the
performance of its duties or by reckless disregard of its obligations and
duties hereunder. The Fund shall make advance payments in connection with the
expenses of defending any action with respect to which indemnification might be
sought hereunder if the Fund receives a written affirmation of the
Administrator's good faith belief that the standard of conduct necessary for
indemnification has been met and a written undertaking to reimburse the Fund
unless it is subsequently determined that he is entitled to such
indemnification and if the directors of the Fund determine that the facts then
known to them would not preclude indemnification. In addition, at least one of
the following conditions much be met: (A) the Administrator shall provide a
security for this undertaking, (B) the Fund shall be insured against losses
arising by reason of any lawful advances, or (C) a majority of a quorum
consisting of directors of the Fund who are neither "interested persons" of the
Fund (as defined in Section 2(a)(19) of the Act) nor parties to the proceeding
("Disinterested Non-Party Directors") or an independent legal counsel in a
written opinion, shall determine, based on a review of readily available facts
(as opposed to a full trial-type inquiry), that there is reason to believe that
the Administrator ultimately will be found entitled to indemnification.
(d) As used in this Paragraph 4, the term "Administrator" shall
include any affiliates of the Administrator performing services for the Fund
contemplated hereby and directors, officers, agents and employees of the
Administrator and such affiliates.
5. Activities of the Administrator. The services of the
Administrator under this Agreement are not to be deemed exclusive, and the
Administrator and any person controlled by or under common control with the
Administrator shall be free to render similar services to others.
6. Duration and Termination of this Agreement. This Agreement
shall become effective as of the date first above written and shall remain in
force until terminated as provided herein. This Agreement may be terminated
at any time, without the payment of any penalty, by the Fund or the
Administrator, on sixty days' written notice to the other party. This
Agreement shall automatically terminate in the event of its assignment.
7. Amendments of this Agreement. This Agreement may be amended by
the parties hereto only if such amendment is specifically approved by the Board
of Directors of the Fund and such amendment is set forth in a written
instrument executed by each of the parties hereto.
8. Governing Law. The provisions of this Agreement shall be
construed and interpreted in accordance with the laws of the State of New York
as at the time in effect and the applicable provisions of the 1940 Act. To the
extent that the applicable law of the State of New York, or any of the
provisions herein, conflict with the applicable provisions of the 1940 Act, the
latter shall control.
9. Counterparts. This Agreement may be executed by the parties
hereto in counterparts and if executed in more than one counterpart the
separate instruments shall constitute one agreement.
10. Notices. Any notice under this Agreement, shall be in writing
and shall be deemed to be received on the earlier of the date actually received
or on the fourth day after the postmark if such notice is mailed first class
postage prepaid. Notice shall be addressed: (a) if to Fund, to: Treasurer,
The Hyperion Total Return Fund, Inc., 520 Madison Avenue, New York, New York
10022; or (b) if to the Administrator, to: President, Hyperion Capital
Management, Inc., 520 Madison Avenue, New York, New York 10022.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as
of the day and year first above written.
THE HYPERION TOTAL RETURN FUND, INC.
By: /s/ Joseph W. Sullivan
Title: Treasurer
HYPERION CAPITAL MANAGEMENT
By: /s/ Louis C. Lucido
Title: Managing Director and Chief Operating Officer