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<SEC-DOCUMENT>0000930413-06-003407.txt : 20060501
<SEC-HEADER>0000930413-06-003407.hdr.sgml : 20060501
<ACCEPTANCE-DATETIME>20060501171900
ACCESSION NUMBER:		0000930413-06-003407
CONFORMED SUBMISSION TYPE:	N-2
PUBLIC DOCUMENT COUNT:		7
FILED AS OF DATE:		20060501
DATE AS OF CHANGE:		20060501

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DNP SELECT INCOME FUND INC
		CENTRAL INDEX KEY:			0000806628
		IRS NUMBER:				363480989
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-133715
		FILM NUMBER:		06796241

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232
		BUSINESS PHONE:		3123685510

	MAIL ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUFF & PHELPS SELECTED UTILITIES INC
		DATE OF NAME CHANGE:	19910429

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			DNP SELECT INCOME FUND INC
		CENTRAL INDEX KEY:			0000806628
		IRS NUMBER:				363480989
		STATE OF INCORPORATION:			MD
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		N-2
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04915
		FILM NUMBER:		06796242

	BUSINESS ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232
		BUSINESS PHONE:		3123685510

	MAIL ADDRESS:	
		STREET 1:		PO BOX 32760
		CITY:			LOUISVILLE
		STATE:			KY
		ZIP:			40232

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	DUFF & PHELPS SELECTED UTILITIES INC
		DATE OF NAME CHANGE:	19910429
</SEC-HEADER>
<DOCUMENT>
<TYPE>N-2
<SEQUENCE>1
<FILENAME>c42214_n2.htm
<TEXT>
<HTML>

<HEAD><TITLE></TITLE></HEAD>
<BODY>


<P align="center"><FONT size=2 face="serif">As filed with the Securities and Exchange Commission
  on May 1, 2006 </FONT></P>

<P align="right">
<FONT size=2 face="serif">1933 Act File No. 333-</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<BR>
<FONT size=2 face="serif">1940 Act File No. 811-04915 </FONT></P>
<hr noshade size=3>
<hr size="1" noshade>
<center>
  <B><FONT size=5 face="serif">SECURITIES AND EXCHANGE COMMISSION</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <B><FONT size=2 face="serif">Washington, D.C. 20549</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <B><FONT size=5 face="serif">FORM N-2 </FONT></B><BR>
  <FONT size=2 face="serif">(Check Appropriate Box or Boxes) </FONT><BR>
</center>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Pre-Effective Amendment No. </FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="sans-serif">|&nbsp;&nbsp;|</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Post-Effective Amendment No.</FONT>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|&nbsp;&nbsp;|</FONT>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=2 face="serif">REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940</FONT></B>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;   </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<FONT size=2 face="serif">Amendment No. 51</FONT>&nbsp;
        </TD>
        <TD align=right>
      <FONT size=2 face="sans-serif">|X|</FONT>&nbsp;   </TD>
</TR>
<TR valign="bottom">
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<P align="center">
<B><FONT size=5 face="serif">DNP SELECT INCOME FUND INC.</FONT></B><B><FONT size=5 face="serif"> </FONT></B><BR>
<FONT size=2 face="serif">(Exact Name of Registrant as Specified in Charter)<br>
</FONT> <B><FONT size=2 face="serif">55 East Monroe Street, Suite
3600 </FONT></B><br>
<B><FONT size=2 face="serif">Chicago, Illinois 60603</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <FONT size=2 face="serif">(Address of Principal Executive Offices) </FONT><BR>
  <B><FONT size=2 face="serif">(312) 368-5510 </FONT></B><BR>
  <FONT size=2 face="serif">(Registrant&#146;s Telephone Number, including Area
  Code) </FONT><BR>
  <B><FONT size=2 face="serif">Nathan I. Partain, CFA </FONT></B><BR>
  <B><FONT size=2 face="serif">DNP Select Income Fund Inc. </FONT></B><BR>
  <FONT face="serif"> </FONT><FONT size=2 face=serif><B>55 East Monroe
  Street, Suite 3600 </B></FONT> <BR>
  <B><FONT size=2 face="serif">Chicago, Illinois 60603</FONT></B><FONT size=2 face="serif"> </FONT><BR>
  <FONT size=2 face="serif">(Name and Address of Agent for Service) </FONT><BR>
  <B><FONT size=2 face="serif">Copies to: </FONT></B><FONT size=2 face="serif"> </FONT><BR>
</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">John R. Sagan, Esq.</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Kevin J. Carr, Esq.</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Lawrence R. Hamilton, Esq.</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Phoenix Life Insurance Company</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Mayer, Brown, Rowe &amp; Maw LLP</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">One American Row</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT face="serif"> </FONT><FONT size=2 face="serif"><B>71 South Wacker Drive</B></FONT>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">Hartford, Connecticut 06102</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">Chicago, Illinois 60606</FONT></B>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=2 face="serif">(860) 403-5000</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<B><FONT size=2 face="serif">(312) 782-0600</FONT></B>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Approximate Date of Proposed Public Offering: </FONT></B><FONT size=2 face="serif">As soon as practicable after the effective date of this Registration Statement. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">If any of the securities
being registered on this form will be offered on a delayed or continuous basis
in reliance on Rule 415 under the Securities Act of 1933, other than securities
offered  in connection with a dividend reinvestment plan, check the following
box&nbsp;&nbsp; </FONT><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD colspan=3 align=left><FONT size=2 face="serif">It is proposed that this
    filing will become effective (check appropriate box): </FONT></TD>
</TR>
<TR valign="bottom">
        <TD width=2% align=right>
      <div align="left"><font size="2" face="sans-serif">|X|&nbsp;&nbsp;</font>      </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">when declared effective pursuant to Section 8(c).</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD colspan=3 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">If appropriate, check the following box:</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font>  </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">This post-effective amendment designates a new effective date for a previously filed registration statement.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><font size="2" face="sans-serif">|&nbsp;&nbsp;|</font>  </div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">This Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD colspan=3 align=left>
<FONT size=2 face="serif">Act and the Securities Act registration statement number of the earlier effective registration statement for the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD width=79% align=left>
<FONT size=2 face="serif">same offering is</FONT>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=10% align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<p>
<table width="100%" border=0 cellpadding=0 cellspacing=0>
  <tr valign="bottom">
    <td colspan=8 align=center> <b><font size=2 face="serif">CALCULATION OF REGISTRATION
          FEE UNDER THE SECURITIES ACT OF 1933</font></b>&nbsp; </td>
  </tr>
  <tr>
    <td colspan=8>
      <hr size="1" noshade>
      <hr size="1" noshade>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=left>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Proposed Maximum</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Proposed Maximum</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Amount of</font></b>&nbsp;
    </center></td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <center>
        <b><font size=1 face="serif">Title of Securities</font></b>&nbsp;
    </center></td>
    <td align=center> <b><font size=1 face="serif">Amount Being</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Offering Price Per</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <b><font size=1 face="serif">Aggregate Offering</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Registration</font></b>&nbsp;
    </center></td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <center>
        <b><font size=1 face="serif">Being Registered</font></b>&nbsp;
    </center></td>
    <td align=center> <b><font size=1 face="serif">Registered</font></b>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Unit</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Price</font></b>&nbsp;
    </center></td>
    <td>
      <center>
    </center></td>
    <td align=center>
      <center>
        <b><font size=1 face="serif">Fee</font></b>&nbsp;
    </center></td>
  </tr>
  <tr>
    <td colspan=8>
      <hr noshade size=1>
    </td>
  </tr>
  <tr valign="bottom">
    <td align=center>
      <div align="left"><font size=2 face="serif">Auction Preferred Stock,</font>&nbsp; </div></td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
    <td>&nbsp; </td>
    <td align=left>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td align=right>
      <div align="left"><font size=2 face="serif">&#36;0.001 par value per share</font>&nbsp; </div></td>
    <td align=right> <center>
      <font size=2 face="serif">8,000 shares</font>&nbsp;
    </center></td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;25,000</font>
    </center></td>
    <td>&nbsp; </td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;200,000,000</font>
      </center></td>
    <td>
      <center>
    </center></td>
    <td align=left>
      <center>
        <font size=2 face="serif">&#36;21,400</font>
      </center></td>
  </tr>
  <tr>
    <td colspan="8"><hr size="1" noshade>
        <hr size="1" noshade>
    </td>
  </tr>
</table>
<p>&nbsp;</p>
<P>
<FONT size=2 face="serif"> </FONT><B><FONT size=2 face="serif">The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the Registrant shall file a further amendment which
specifically states that this Registration Statement shall thereafter become effective in accordance with section 8(a) of the Securities Act of 1933 or until this Registration Statement shall become effective on such date as the Securities and
Exchange Commission, acting pursuant to section 8(a), may determine. </FONT></B></P>

<hr size="1" noshade>

<HR noshade  width="100%" size=3><PAGE>








<P><FONT SIZE=2 COLOR=RED>The
information in this Prospectus is not complete and may be changed. A
registration statement relating to these securities has been filed with the
Securities and Exchange Commission. We may not sell these securities until the
registration statement is effective. This Prospectus is not an offer to sell
these securities and it is not soliciting an offer to buy these securities in
any state where the offer or sale is not permitted.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="50%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="20%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="38%" VALIGN=TOP>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 COLOR=RED><B>PRELIMINARY
  PROSPECTUS</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2  COLOR=RED><B>Subject to
  Completion</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P ALIGN=RIGHT><FONT SIZE=2>,
  2006 </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=3><B>$200,000,000</B></FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=6>DNP Select Income Fund Inc. </FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=3><B>4,000
  Shares Series T</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=3><B> 4,000 Shares Series R</B></FONT></P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=3><B>Auction
  Preferred Stock (&#147;APS&#148;) </B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=3><B>Liquidation
  Preference $25,000 Per Share </B></FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>Investment
  objectives. </B>DNP
  Select Income Fund Inc. (the &#147;Fund&#148;) is a diversified, closed-end management
  investment company. The Fund&#146;s primary investment objectives are current
  income and long-term growth of income. Capital appreciation is a secondary
  objective. There can be no assurance that the Fund will achieve its
  investment objectives. </FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>Investment adviser. </B>Duff &amp; Phelps Investment Management Co. (the &#147;Adviser&#148;) has acted as
the Fund&#146;s investment adviser since the Fund&#146;s inception in 1987. As of March
31, 2006, the Adviser managed approximately $6.6 billion in assets, including
approximately $2.7 billion in securities of public utility companies. The
Adviser&#146;s address is 55 East Monroe Street, Suite 3600, Chicago, Illinois
60603. </FONT></P>

<table width="100%"  border="0">
  <tr>
    <td colspan="3"><font size=2><b>Portfolio contents. </b>The Fund seeks to achieve its investment objectives by investing primarily in a diversified portfolio of equity and fixed income securities of companies in the public utilities industry. Under normal conditions, more than 65% of the Fund&#146;s total assets will be invested in securities of public utility companies engaged in the production, transmission or distribution of electric energy, gas or telephone services. <i>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</i></font></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td><div align="right"><font size=2><i>&nbsp;(continued on inside cover)</i></font></div></td>
  </tr>
</table>


<P><FONT SIZE=2><B>Before buying any APS, you should read the discussion of
material risks of investing in the Fund in the &#147;Risks&#148; section beginning on
page 22 of this Prospectus. Certain of these risks are summarized in
&#147;Prospectus summary&#151;Risks of investing in the Fund&#148; beginning on page 4.</B></FONT></P>

<P><FONT SIZE=2><B>Neither the Securities and Exchange Commission nor any state
securities commission has approved or disapproved of these securities or
determined if this Prospectus is truthful or complete. Any representation to
the contrary is a criminal offense. </B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="55%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="10%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Price to public</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Sales load</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Proceeds to Fund(1)</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="4" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Per share</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>25,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>24,750</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Total</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>200,000,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>2,000,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>$</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>198,000,000</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2>(1)</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Plus accumulated dividends,
  if any, from the date the APS are issued, but before offering expenses
  payable by the Fund estimated to be approximately $152,400. The Fund and the
  Adviser have agreed to indemnify the underwriter against certain liabilities
  under the Securities Act of 1933, as amended. See &#147;Underwriting&#148;.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The underwriter is offering
the APS subject to various conditions. The underwriter expects to deliver the
APS in book-entry form, through the facilities of the Depository Trust Company,
to purchasers on or about
[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2006.</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><I>(continued
  from previous page) </I></FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>The APS is
being offered by the underwriter subject to the condition that the shares of
APS be rated &#147;Aaa&#148; by Moody&#146;s Investors Service, Inc. (&#147;Moody&#146;s&#148;) and &#147;AAA&#148; by
Standard &amp; Poor&#146;s Ratings Services, a division of The McGraw-Hill
Companies, Inc. (&#147;S&amp;P&#148;), as of the time of delivery of the APS to the
underwriter, and subject to certain other conditions. </FONT></P>

<P><FONT SIZE=2>The APS will
pay adjustable rate dividends based on shorter-term interest rates, which will
be re-determined periodically by an auction process, conducted in accordance
with the procedures described in this Prospectus and, in further detail, in the
Statement of Additional Information. The adjustment period for APS dividends
could be as short as seven days or as long as a year or more.</FONT></P>


<P><FONT SIZE=2>The APS, which
has no history of public trading, will not be listed on an exchange or
automated quotation system. Broker-dealers may maintain a secondary trading
market in the APS outside of auctions; however, they have no obligation to do
so, and there can be no assurance that a secondary market for the APS will
develop or, if it does develop, that it will provide holders with a liquid
trading market (i.e., trading will depend on the presence of willing buyers and
sellers and the trading price will be subject to variables to be determined at
the time of the trade by such broker-dealers). A general increase in the level
of interest rates may have an adverse effect on the secondary market price of
the APS, and a selling shareholder that sells APS between auctions may receive
a price per share of less than $25,000. The Fund may redeem APS as described
under &#147;Description of APS&#151;Redemption.&#148;</FONT></P>

<P><FONT SIZE=2>When issued
and outstanding, the APS will add further leverage to an investment in the
Fund&#146;s common stock. As of May __, 2006, the Fund had outstanding 4,000 shares
of auction preferred stock, Series M (the &#147;Series M APS&#148;), 4,000 shares of
auction preferred stock, Series W (the &#147;Series W APS&#148;), 4,000 shares of auction
preferred stock, Series F (the &#147;Series F APS&#148; and collectively with the Series
M APS and the Series W APS, the &#147;Existing APS&#148;), 1,000 shares of remarketed
preferred stock, Series A (the &#147;Series A RPS&#148;), 1,000 shares of remarketed
preferred stock, Series B (the &#147;Series B RPS&#148;), 1,000 shares of remarketed
preferred stock, Series C (the &#147;Series C RPS&#148;), 1,000 shares of remarketed
preferred stock, Series D (the &#147;Series D RPS&#148;), and 1,000 shares of remarketed
preferred stock, Series E (the &#147;Series E RPS&#148; and collectively with the Series
A RPS, the Series B RPS, the Series C RPS and the Series D RPS, the &#147;RPS&#148;). The
APS will be senior in liquidation and distribution rights to the Fund&#146;s
outstanding common stock and equal in liquidation and distribution rights to
the Existing APS and the RPS. The Fund&#146;s common stock is traded on the New York
Stock Exchange under the symbol &#147;DNP.&#148;</FONT></P>

<P><FONT SIZE=2>You should
read this Prospectus, which contains important information about the Fund,
before deciding whether to invest in the APS, and retain it for future
reference. A Statement of Additional Information, dated March 28, 2006,
containing additional information about the Fund, has been filed with the Securities
and Exchange Commission (&#147;SEC&#148;) and is incorporated by reference in its
entirety into this Prospectus, which means it is part of the Prospectus for
legal purposes. You may request a free copy of the Statement of Additional
Information (the table of contents of which is on page 57 of this Prospectus),
the Fund&#146;s annual and semi-annual reports and other information about the Fund,
or make other inquiries by calling the Fund&#146;s administrator at (888) 878-7845,
by writing to the Fund at 55 East Monroe Street, Suite 3600, Chicago, Illinois
60603, or by visiting the web site of either the Fund
(http://www.dnpselectincome.com) or the SEC (http://www.sec.gov).</FONT></P>

<P><FONT SIZE=2>You should
rely only on the information contained or incorporated by reference in this
Prospectus. The Fund has not, and the underwriter has not, authorized anyone to
provide you with different information. If anyone provides you with different
or inconsistent information, you should not rely on it. The Fund is not, and
the underwriter is not, making an offer in any state where the offer or sale is
not permitted. You should not assume that the information in this Prospectus is
accurate as of any date other than the date on the front of this Prospectus.
The Fund&#146;s business, financial condition and prospects may have changed since
that date.</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s APS
does not represent a deposit or obligation of, and is not guaranteed or
endorsed by, any bank or other insured depository institution, and is not
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board or any other government agency.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
  </TD>
 </TR>

 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><B>ii</B></FONT></P>
  </TD>
 </TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="93%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><B>TABLE OF CONTENTS</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A HREF="#A001">Prospectus summary</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>1</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A002">Financial highlights</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>11</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A003">The Fund</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>13</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A004">Use of proceeds</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>13</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A005">Capitalization (unaudited)</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>14</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A006">Portfolio composition</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>14</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A007">The Fund&#146;s investments</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>15</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A008">Risks</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>22</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A009">Management of the Fund</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>29</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A010">Description of APS</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>32</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A011">The auction</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>41</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A012">Description of capital structure</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>45</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A013">Certain provisions in the charter and bylaws and
  certain provisions of Maryland law</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>47</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A014">Repurchase of common stock</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>50</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A015">U.S. federal income tax matters</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>50</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A016">Underwriting</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>54</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A017">Custodian, transfer agent and auction
agent</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>55</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A018">Legal opinions</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>55</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A019">Available information</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>55</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A020">Privacy principles of the Fund</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>56</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT    SIZE=2><A HREF="#A021">Table of contents for the Statement of Additional
Information</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2><B>57</B></FONT></P>
  </TD>
 </TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="100%" VALIGN=BOTTOM>
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  <P ALIGN=RIGHT><FONT SIZE=2><B>iii</B></FONT></P>
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<P><A NAME=A001></A><FONT SIZE=5>Prospectus
summary</FONT></P>

<P><FONT SIZE=2><I>This is only a summary. This summary does not
contain all of the information that you should consider before investing in our
APS. You should read the more detailed information contained in this
Prospectus, the Statement of Additional Information and the Articles
Supplementary attached as Appendix A to the Statement of Additional
Information. Unless otherwise noted, any reference in this Prospectus to
preferred stock refers to all preferred stock of the Fund, including the APS,
the Existing APS and the RPS. Capitalized terms used but not defined in this
Prospectus shall have the meanings given to such terms in the Articles
Supplementary. </I></FONT></P>

<P><FONT SIZE=2><B>THE FUND</B></FONT></P>

<P><FONT SIZE=2>DNP Select
Income Fund Inc. is a diversified, closed-end management investment company
that first offered its common stock to the public in January 1987. See &#147;The
Fund.&#148; </FONT></P>

<P><FONT SIZE=2><B>THE OFFERING </B></FONT></P>

<P><FONT SIZE=2>The Fund is
offering an aggregate of 8,000 shares of APS, of which 4,000 shares will be
designated Series T (the &#147;Series T APS&#148;) and 4,000 shares will be designated
Series R (the &#147;Series R APS&#148;), each at a purchase price of $25,000 per share.
The APS is being offered by
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(the
&#147;Underwriter&#148;). See &#147;Underwriting.&#148;</FONT></P>

<P><FONT SIZE=2><B>INVESTMENT OBJECTIVES AND POLICIES </B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s
primary investment objectives are current income and long-term growth of
income. Capital appreciation is a secondary objective. There can be no
assurance that the Fund will achieve its investment objectives. The Fund seeks
to achieve its investment objectives by investing primarily in a diversified
portfolio of equity and fixed income securities of companies in the public
utilities industry. Under normal conditions, more than 65% of the Fund&#146;s total
assets will be invested in securities of public utility companies engaged in
the production, transmission or distribution of electric energy, gas or
telephone services. See &#147;The Fund&#146;s investments&#151;Investment objectives and
policies.&#148; </FONT></P>

<P><FONT SIZE=2>The Fund&#146;s
investment policies have been developed to take advantage of the
characteristics of securities of companies in the public utilities industry.
Historically, securities of companies in the public utilities industry have
tended to produce current income and long-term growth of income for their
holders. They are thus well suited to the Fund&#146;s primary investment objectives.
The investments of the Fund in securities of public utility companies are
diversified not only in terms of issuers but also in terms of types of
securities, since the Fund may invest in fixed income securities, such as bonds
and preferred stocks, as well as common stocks, convertible securities and
securities of real estate investment trusts. The Fund may invest in the
securities of domestic and foreign issuers as well as in securities of
companies of any market capitalization, including small and mid cap stocks. The
Fund may vary the percentage of assets invested in any one type of security
based upon the Adviser&#146;s evaluation as to the appropriate portfolio structure
for achieving the Fund&#146;s investment objectives under prevailing market,
economic and financial conditions. Generally, the Fund purchases a fixed income
security only if, at the time of purchase, it is rated investment grade,
although the Fund is not required to divest itself of a security that falls
below investment grade. The Fund does not have a specific maturity policy but
generally does not purchase fixed income securities with maturities longer than
30 years. See &#147;The Fund&#146;s investments&#151;Investment objectives and policies.&#148;</FONT></P>

<P><FONT SIZE=2><B>INVESTMENT TECHNIQUES </B></FONT></P>

<P><FONT SIZE=2>The Fund may
from time to time employ a variety of investment techniques, including those
described below under the heading &#147;The Fund&#146;s investments&#151;Investment
techniques,&#148; to hedge against fluctuations in the price of portfolio
securities, to enhance total return or to provide a substitute for the purchase
or sale of securities. Some of these techniques, such as purchases of put and
call options, options on stock indices and stock index futures and entry into
certain credit derivative transactions, are hedges against or substitutes for
investments in equity investments. Other techniques, such as the purchase of
interest rate futures and entry into transactions involving interest rate
swaps, options on interest rate swaps and certain credit derivatives, are
hedges against or substitutes</FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2><B>1</B></FONT></P>

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<P><FONT SIZE=2>for
investments in debt securities. The Fund&#146;s ability to utilize any of the
techniques described in this Prospectus may be limited by restrictions imposed
on its operations in connection with obtaining and maintaining its
qualification as a regulated investment company under the Internal Revenue Code
of 1986, as amended (the &#147;Code&#148;), and by rating agencies rating the Fund&#146;s
preferred stock. Though it does not currently make significant use of dividend
capture trading, the Fund may seek to enhance the level of dividend income it
receives by engaging in such trading in the future. In a dividend capture
trade, the Fund purchases stock of a particular issuer on or prior to the
ex-dividend date for that stock. Because the Fund is the holder of the stock on
the ex-dividend date, it is entitled to receive the dividend on the stock.
After the ex-dividend date, the Fund seeks an opportunity to sell the stock and
reinvest the proceeds in the stock of a different issuer on or prior to that
stock&#146;s ex-dividend date. The use of captures may enable the Fund to collect
more dividends per quarter than it would have collected if it held the same
stock throughout the entire quarter.</FONT></P>

<P><FONT SIZE=2><B>USE OF LEVERAGE </B></FONT></P>

<P><FONT SIZE=2>As of May __,
2006, the Fund&#146;s leverage consists of five series of outstanding RPS with an
aggregate liquidation preference of $500 million and three series of Existing
APS with an aggregate liquidation preference of $300 million. The issuance of
$200 million of APS in this offering will increase the Fund&#146;s total leverage to
$1 billion. This increase in the Fund&#146;s leverage could have the effect of
increasing the volatility of both the Fund&#146;s net asset value and the market
value of its common stock. The means that if there is a net decrease in the
value of the Fund&#146;s investment portfolio, the use of leverage will likely cause
a greater decrease in the net asset value per common share and the market value
per common share than if the Fund were not leveraged.</FONT></P>

<P><FONT SIZE=2>In addition to
issuing the APS, the Fund may borrow money or issue debt securities such as
commercial paper or notes (collectively, &#147;Borrowings&#148;). As of May __, 2006, the
Fund retired all of its commercial paper notes (&#147;CP Notes&#148;) and terminated its
CP Note program and the related backup credit facility. As a result, the Fund
currently has no Borrowings, although it could enter into Borrowings in the
future. Any future Borrowings would have seniority over the APS and any other
outstanding shares of preferred stock, and payments to holders of the APS and
any other outstanding shares of preferred stock in liquidation or otherwise
would be subject to the prior payment of any Borrowings. Because the fee paid
to the Adviser is calculated on the basis of the Fund&#146;s managed assets (which
equals the aggregate net asset value of the common stock plus the aggregate
liquidation preference of the preferred stock and the aggregate principal
amount of any Borrowings), the advisory fee will be higher when leverage is
utilized, giving the Adviser an incentive to utilize leverage.</FONT></P>

<P><FONT SIZE=2><B>INTEREST RATE TRANSACTIONS</B></FONT></P>

<P><FONT SIZE=2>In connection
with the Fund&#146;s use of leverage through its preferred stock, the Fund may enter
into interest rate swap or cap transactions. Interest rate swaps involve the
Fund&#146;s agreement with the swap counterparty to pay a fixed rate payment in
exchange for the counterparty paying the Fund a variable rate payment that is
intended to approximate the Fund&#146;s variable rate payment obligation on its
preferred stock or variable rate borrowing. The payment obligation would be
based on the notional amount of the swap. The Fund&#146;s payment obligations under
the swap are general unsecured obligations of the Fund and are ranked senior to
distributions under the common stock and preferred stock. The Fund may use an
interest rate cap, which would require it to pay a premium to the cap
counterparty and would entitle it, to the extent that a specified variable rate
index exceeds a predetermined fixed rate, to receive from the counterparty
payment of the difference based on the notional amount. The Fund would use
interest rate swaps or caps only with the intent to reduce or eliminate the
effect that an increase in short-term interest rates could have on common share
net earnings as a result of leverage. See &#147;The Fund&#146;s investments&#151;Interest rate
transactions.&#148; </FONT></P>

<P><FONT SIZE=2><B>INVESTMENT ADVISER AND ADMINISTRATOR </B></FONT></P>

<P><FONT SIZE=2>Duff &amp;
Phelps Investment Management Co. is the Fund&#146;s investment adviser. The Adviser
is registered with the SEC as an investment adviser under the Investment
Advisers Act of 1940 (the &#147;Advisers Act&#148;). The Adviser (together with its
predecessor) has been in the investment advisory business for more than 70
years and has acted as the Fund&#146;s investment adviser since the Fund&#146;s</FONT></P>

<P><FONT SIZE=2><B>2</B></FONT></P>

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<P><FONT SIZE=2>inception in
1987. As of March 31, 2006, the Adviser managed approximately $6.6 billion in
assets, including approximately $2.7 billion in securities of public utility
companies. The Adviser acts as investment adviser to two other closed-end
investment companies registered under the Investment Company Act of 1940 (the
&#147;Investment Company Act&#148;) and three open-end investment companies registered
under the Investment Company Act.</FONT></P>

<P><FONT SIZE=2>J.J.B.
Hilliard, W.L. Lyons, Inc. (the &#147;Administrator&#148;) is the Fund&#146;s administrator.
The Administrator is a wholly-owned subsidiary of The PNC Financial Services
Group, Inc. The Administrator provides administrative services required in
connection with the operation of the Fund.</FONT></P>

<P><FONT SIZE=2>The Fund pays
a quarterly fee to the Adviser for investment advisory services at an annual
rate of 0.60% of the Fund&#146;s average weekly net assets up to $1.5 billion and
0.50% of average weekly net assets in excess of $1.5 billion. The Fund pays a
quarterly fee to the Administrator for administrative services at an annual
rate of 0.25% of the Fund&#146;s average weekly net assets up to $100 million, 0.20%
of the average weekly net assets from $100 million to $1.0 billion and 0.10% of
the average weekly net assets over $1.0 billion. </FONT></P>

<P><FONT SIZE=2><B>RISKS </B></FONT></P>

<P><FONT SIZE=2>The following
describes various principal risks of investing in the APS and the Fund. A more
detailed description of these and other risks of investing in the APS and the
Fund are described under &#147;Risks&#148; in this Prospectus.</FONT></P>

<P><FONT SIZE=5>Risks of investing in the
APS</FONT></P>

<P><FONT SIZE=2><B>Auction risk</B></FONT></P>

<P><FONT SIZE=2>The dividend
rate for the APS normally is set through an auction process. In the auction,
holders of APS may indicate the dividend rate at which they would be willing to
hold or sell their APS or purchase additional APS. The auction also provides
liquidity for the sale of APS. An auction fails if there are more shares of APS
offered for sale than there are buyers for shares of APS. You may not be able
to sell your APS at an auction if the auction fails. Finally, if you elect to
retain your APS in connection with an auction, and all other holders also elect
to retain their APS in connection with that auction, then the applicable
dividend rate for the next dividend period will be the &#147;all-hold&#148; rate, which
may be less than the market rate. See &#147;Risks&#151;Auction risk.&#148; </FONT></P>

<P><FONT SIZE=2><B>Secondary market risk</B></FONT></P>

<P><FONT SIZE=2>If you try to
sell shares of your APS between auctions, you may not be able to sell any or
all of your APS or you may not be able to sell them for $25,000 per share plus
accumulated dividends. If the Fund has designated a special dividend period,
changes in interest rates could affect the price you would receive if you sold
your shares in the secondary market. Broker-dealers that maintain a secondary
trading market for the APS are not required to maintain this market, and the
Fund is not required to redeem shares either if an auction or an attempted secondary
market sale fails because of a lack of buyers. The APS are not listed on a
stock exchange or traded on the NASDAQ stock market. If you sell your APS to a
broker-dealer between auctions, you may receive less than the price you paid
for them, especially if market interest rates have risen since the last
auction. See &#147;Risks&#151;Secondary market risk.&#148; </FONT></P>

<P><FONT SIZE=2><B>Ratings and asset coverage risk</B></FONT></P>

<P><FONT SIZE=2>While it is
expected that Moody&#146;s will assign a rating of &#147;Aaa&#148; and S&amp;P will assign a
rating of &#147;AAA&#148; to the APS, such ratings do not eliminate or necessarily
mitigate the risks of investing in the APS. Moody&#146;s or S&amp;P could withdraw
or downgrade the APS, which may make your shares less liquid at an auction or
in the secondary market. If Moody&#146;s or S&amp;P withdraws its rating or downgrades
the APS, the Fund may alter its portfolio or redeem shares of APS in an effort
to reinstate or improve, as the case may be, the rating, although there is no
assurance that the Fund will be able to do so to the extent necessary to
restore the prior rating. The Fund&#146;s ability to meet the asset coverage</FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2><B>3</B></FONT></P>

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<P><FONT SIZE=2>requirements
of the Investment Company Act may be impaired by decreases in the market value
of the Fund&#146;s total assets, including those assets attributable to the Fund&#146;s
preferred stock and Borrowings. The Fund also may voluntarily redeem APS under
certain circumstances. See &#147;Risks&#151;Ratings and asset coverage risk.&#148; </FONT></P>

<P><FONT SIZE=2><B>Subordination risk</B></FONT></P>

<P><FONT SIZE=2>As permitted
by its fundamental investment policies, the Fund uses various forms of
financial leverage. The issuance of the APS is only one component of the Fund&#146;s
use of leverage, which also includes five series of outstanding RPS with an
aggregate liquidation preference of $500 million and three series of Existing
APS with an aggregate liquidation preference of $300 million. Holders of APS
will have equal liquidation and distribution rights to the holders of the
Existing APS and the RPS. As of May __, 2006, the Fund retired all of its CP
Notes and terminated its CP Note program and the related backup credit
facility. As a result, the Fund currently has no Borrowings, although it could
enter into Borrowings in the future. In connection with the Fund&#146;s use of
leverage through its preferred stock and any Borrowings, the Fund may enter
into interest rate swap or cap transactions. If the Fund enters into Borrowings
or interest rate swaps or caps, the rights of lenders and counter-parties in
those transactions will be senior to the rights of holders of the Fund&#146;s
preferred stock, including the APS. Dividends, distributions and other payments
to holders of APS in liquidation or otherwise would be subject to prior payment
of the Fund&#146;s obligations to the lenders and counter-parties with respect to
any Borrowings or interest rate swaps or caps. If the Fund were in default on
any such obligations, it would not be permitted to declare, pay or set apart
for payment any dividend or other distribution in respect of the APS, or call
for redemption or redeem any shares of APS.</FONT></P>

<P><FONT SIZE=2><B>Restrictions on dividends and other distributions</B></FONT></P>

<P><FONT SIZE=2>Restrictions imposed
on the declaration and payment of dividends or other distributions to the
holders of the Fund&#146;s common stock or preferred stock, both by the Investment
Company Act and by requirements imposed by rating agencies, might impair the
Fund&#146;s ability to comply with minimum distribution requirements that it must
satisfy to maintain its favorable tax treatment as a regulated investment
company for U.S. federal income tax purposes. </FONT></P>

<P><FONT SIZE=2><B>Interest rate risk</B></FONT></P>

<P><FONT SIZE=2>The APS pays
dividends based on short-term interest rates. If short-term interest rates
rise, dividend rates on the APS will also rise. A sharp increase in short-term
interest rates could cause a &#147;negative arbitrage&#148; situation, where the dividend
rate on the APS would exceed the yield on the Fund&#146;s portfolio securities. In
addition, rising market interest rates could negatively impact the value of the
Fund&#146;s investment portfolio, reducing the amount of assets serving as asset
coverage for the APS.</FONT></P>

<P><FONT SIZE=5>Risks of investing in the
Fund </FONT></P>

<P><FONT SIZE=2><B>Investment and market risk</B></FONT></P>

<P><FONT SIZE=2>An investment
in the Fund is subject to investment risk, including the possible loss of the
entire amount invested. An investment in the Fund represents an indirect
investment in the securities owned by the Fund, which are generally traded on a
securities exchange or in the over-the-counter markets. The value of these
securities, like other market investments, may move up or down, sometimes
rapidly and unpredictably.</FONT></P>

<P><FONT SIZE=2><B>Income risk</B></FONT></P>

<P><FONT SIZE=2>The income
that holders of preferred stock and common stock receive from the Fund is based
primarily on the dividends and interest the Fund earns from its investments,
which can vary widely over the short and long term. If prevailing market
interest rates drop, distribution rates of the Fund&#146;s preferred stock holdings
and any bond holdings and preferred and common shareholders&#146; income from the
Fund could drop as well. The Fund&#146;s income also would likely be affected
adversely when prevailing short-term interest rates increase and the Fund is
utilizing leverage. </FONT></P>

<P><FONT SIZE=2><B>4</B></FONT></P>

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<P><FONT SIZE=2><B>Management risk</B></FONT></P>

<P><FONT SIZE=2>The Fund is subject
to management risk because it is an actively managed portfolio. The Adviser and
the individual portfolio managers apply investment techniques and risk analyses
in making investment decisions for the Fund, but there can be no guarantee that
these will produce the desired results.</FONT></P>

<P><FONT SIZE=2><B>Leverage risk</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s
leveraged capital structure creates special risks not associated with
unleveraged funds having similar investment objectives and policies. These
include the possibility of higher volatility of the Fund&#146;s net asset value and
the asset coverage of the Fund&#146;s preferred stock. This means that if there is a
net decrease in the value of the Fund&#146;s investment portfolio, the use of
leverage will likely cause a greater decrease in the net asset value per common
share and the market value per common share than if the Fund were not
leveraged.</FONT></P>

<P><FONT SIZE=2><B>Utilities industry risk</B></FONT></P>

<P><FONT SIZE=2>The Fund
invests a significant portion of its assets in securities of issuers in the
public utilities industry. This may make the Fund more susceptible to adverse
economic, political or regulatory occurrences affecting this industry. As
concentration in an industry increases, so does the potential for fluctuation
in the net asset value of the Fund&#146;s assets. </FONT></P>

<P><FONT SIZE=2>Certain
segments of the public utilities industry and individual companies within such
segments may not perform as well as the industry as a whole. The public
utilities industry historically has been subject to risks of increases in fuel,
purchased power and other operating costs, high interest costs on borrowings
needed for capital improvement programs and costs associated with compliance
with and changes in environmental and other governmental regulations.
Telecommunications companies in particular have been subject to risks
associated with increasing levels of competition, technology substitution (i.e.
wireless, broadband and voice over Internet protocol, or VoIP), industry
overcapacity, consolidation and regulatory uncertainty.</FONT></P>

<P><FONT SIZE=2><B>Investments in securities of foreign issuers</B></FONT></P>

<P><FONT SIZE=2>While the Fund
is prohibited from investing 15% or more of its assets in securities of foreign
issuers, the Fund may be exposed to certain risks as a result of foreign
investments. When the Fund invests in securities of foreign issuers, it is
subject to risks not typically associated with investing in securities of U.S.
companies. These risks can include currency devaluations and other fluctuations
in foreign currencies, foreign currency exchange controls, greater price
volatility, substantially less liquidity and significantly smaller market
capitalization of securities markets, more substantial government involvement
in the economy, higher rates of inflation, differences in securities regulation
and trading, political uncertainty and other risks.</FONT></P>

<P><FONT SIZE=2>In addition,
accounting, auditing and financial reporting standards in foreign countries are
different from U.S. standards. As a result, certain material disclosures may
not be made and less information may be available to the Fund and other
investors than would be the case if the Fund&#146;s investments were restricted to
securities of U.S. issuers. Moreover, it may be more difficult to obtain a
judgment in a court outside the United States. Interest and dividends paid on
securities held by the Fund and gains from the disposition of such securities
may be subject to withholding taxes imposed by foreign countries. </FONT></P>

<P><FONT SIZE=2><B>Common stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund has
substantial exposure to common stocks. Although common stocks have historically
generated higher average returns than fixed-income securities over the long-term,
common stocks also have experienced significantly more volatility in returns.
An adverse event, such as an unfavorable earnings report, may depress the value
of a particular common stock held by the Fund. Also, the price of common stocks
are sensitive to general movements in the stock market and a drop in the stock
market may depress the price of common stocks to which the Fund has exposure.
Common stock prices fluctuate for many reasons, including changes in investors&#146;
perceptions of the financial condition of an issuer or the general condition of
the relevant stock market, or when political or eco-</FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2><B>5</B></FONT></P>

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<P><FONT SIZE=2>nomic events
affecting the issuer occur. In addition, common stock prices may be sensitive
to rising interest rates, as the costs of capital rise and borrowing costs
increase.</FONT></P>

<P><FONT SIZE=2><B>Small and mid cap stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund may
invest in companies of any market capitalization. The Fund&#146;s investments in
small and medium-sized companies may be subject to more abrupt or erratic
movements in price than its investments in larger, more established companies
because the securities of such companies are less well-known, held primarily by
insiders or institutional investors or may trade less frequently and in lower
volume. Furthermore, small and medium-sized companies are more likely to
experience greater or more unexpected changes in their earnings and growth
prospects. Such companies often have limited financial resources or may depend
on a few key employees, and the products or technologies of such companies may
be at a relatively early stage of development or not fully tested.</FONT></P>

<P><FONT SIZE=2><B>Preferred stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund may
invest in, and thus may have exposure to, preferred stocks. Preferred stocks
involve credit risk, which is the risk that a preferred stock will decline in
price, or fail to pay dividends when expected, because the issuer experiences a
decline in its financial status. In addition to credit risk, investment in
preferred stocks involves certain other risks. Certain preferred stocks contain
provisions that allow an issuer under certain conditions to skip distributions
(in the case of &#147;non-cumulative&#148; preferred stocks) or defer distributions (in
the case of &#147;cumulative&#148; preferred stocks). If the Fund owns a preferred stock
that is deferring its distributions, the Fund may be required to report income
for tax purposes while it is not receiving income on this position. Preferred
stocks often contain provisions that allow for redemption in the event of
certain tax or legal changes or at the issuers&#146; call. In the event of redemption,
the Fund may not be able to reinvest the proceeds at comparable rates of
return. Preferred stocks typically do not provide any voting rights, except in
cases when dividends are in arrears beyond a certain time period, which varies
by issue. Preferred stocks are subordinated to bonds and other debt instruments
in a company&#146;s capital structure in terms of priority to corporate income and
liquidation payments, and therefore are subject to greater credit risk than
those debt instruments. Preferred stocks may be significantly less liquid than
many other securities, such as U.S. government securities, corporate debt or
common stock.</FONT></P>

<P><FONT SIZE=2><B>Issuer risk</B></FONT></P>

<P><FONT SIZE=2>The value of
common and preferred stocks may decline for a number of reasons which directly
relate to the issuer, such as management performance, leverage and reduced
demand for the issuer&#146;s goods and services.</FONT></P>

<P><FONT SIZE=2><B>Debt securities risk</B></FONT></P>

<P><FONT SIZE=2>In addition to
credit risk, investment in debt securities carries certain risks, including:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="5%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="95%" VALIGN=TOP>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE="WINGDINGS 3">&#134;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><I>Redemption risk </I>&#151; Debt securities sometimes
  contain provisions that allow for redemption in the event of tax or security
  law changes in addition to call features at the option of the issuer. In the
  event of a redemption, the Fund may not be able to reinvest the proceeds at
  comparable rates of return.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE="WINGDINGS 3">&#134;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><I>Limited voting rights </I>&#151; Debt securities
  typically do not provide any voting rights, except in cases when interest
  payments have not been made and the issuer is in default.</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2 FACE="WINGDINGS 3">&#134;</FONT></P>
  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=2><I>Liquidity </I>&#151; Certain debt securities may be
  substantially less liquid than many other securities, such as U.S. government
  securities or common stocks.</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>Credit risk</B></FONT></P>

<P><FONT SIZE=2>Credit risk is
the risk that an issuer of a preferred or debt security will become unable to
meet its obligation to make dividend, interest and principal payments. In
general, lower rated preferred or debt securities carry a greater degree of
credit risk. If rating agencies lower their ratings of preferred or debt
securities in the Fund&#146;s portfolio, the value of those obligations could
decline, which could jeopardize the rating agencies&#146; ratings of the preferred
stock issued by the Fund. In addition, the</FONT></P>

<P><FONT SIZE=2><B>6</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>underlying
revenue source for a preferred or debt security may be insufficient to pay
dividends, interest or principal in a timely manner. Because a primary source
of income for the Fund is the dividend, interest and principal payments on the
preferred or debt securities in which it invests, any default by an issuer of a
preferred or debt security could have a negative impact on the Fund&#146;s ability
to pay dividends to its investors. Even if the issuer does not actually
default, adverse changes in the issuer&#146;s financial condition may negatively
affect its credit rating or presumed creditworthiness. These developments would
adversely affect the market value of the issuer&#146;s obligations or the value of
credit derivatives if the Fund has sold credit protection.</FONT></P>

<P><FONT SIZE=2><B>Hedging strategy risk</B></FONT></P>

<P><FONT SIZE=2>Certain of the
investment techniques that the Fund may employ for hedging or, under certain
circumstances, to increase income or total return, will expose the Fund to
risks. Such investment techniques may include entering into interest rate and
stock index futures contracts and options on interest rate and stock index
futures contracts, purchasing and selling put and call options on securities
and stock indices, purchasing and selling securities on a when-issued or
delayed delivery basis and lending portfolio securities. The Fund intends to
comply with regulations of the SEC involving &#147;covering&#148; or segregating assets
in connection with the Fund&#146;s use of options and futures contracts.</FONT></P>

<P><FONT SIZE=2>There are
economic costs of hedging reflected in the pricing of futures, swaps, options
and contracts related to options on positions in interest rate swaps which can
be significant, particularly when long-term interest rates are substantially
above short-term interest rates. There may be an imperfect correlation between
changes in the value of the Fund&#146;s portfolio holdings and hedging positions
entered into by the Fund, which may prevent the Fund from achieving the
intended hedge or expose the Fund to risk of loss. In addition, the Fund&#146;s
success in using hedge instruments is subject to the Adviser&#146;s ability to
predict correctly changes in the relationships of such hedge instruments to the
Fund&#146;s portfolio holdings, and there can be no assurance that the Adviser&#146;s
judgment in this respect will be accurate. Consequently, the use of hedging
transactions might result in a poorer overall performance for the Fund, whether
or not adjusted for risk, than if the Fund had not hedged its portfolio
holdings.</FONT></P>

<P><FONT SIZE=2><B>Derivatives risk</B></FONT></P>

<P><FONT SIZE=2>To the extent
the Fund enters into derivatives transactions (such as futures contracts and
options thereon, options and swaps), the Fund will be subject to increased risk
of principal loss due to imperfect correlation or unexpected price or interest
rate movements. The Fund also will be subject to credit risk with respect to
the counterparties to the derivatives contracts purchased by the Fund. If a
counterparty becomes bankrupt or otherwise fails to perform its obligations
under a derivative contract due to financial difficulties, the Fund may
experience significant delays in obtaining any recovery under the derivative
contract in a bankruptcy or other reorganization proceeding. The Fund may
obtain only a limited recovery or may obtain no recovery in such circumstances.
As a general matter, dividends received on hedged stock positions are
characterized as ordinary income and are not eligible for favorable tax
treatment. In addition, use of derivatives may give rise to short-term capital
gains and other income that would not qualify for payments by the Fund of
qualified dividends, as described under &#147;U.S. federal income tax
matters&#151;Taxation of shareholders.&#148; </FONT></P>

<P><FONT SIZE=2><B>Dividend capture risk</B></FONT></P>

<P><FONT SIZE=2>The Fund may
seek to increase its dividend income using a strategy called &#147;dividend
capture.&#148; In a dividend capture trade, the Fund purchases stock of a particular
issuer on or prior to the ex-dividend date for that stock. Because the Fund is
the holder of the stock on the ex-dividend date, it is entitled to receive the
dividend on the stock. After the ex-dividend date, the Fund seeks an
opportunity to sell the stock and reinvest the proceeds in the stock of a
different issuer on or prior to that stock&#146;s ex-dividend date. The use of
dividend capture strategies exposes the Fund to increased trading costs and the
potential for capital loss. Since 2004, the Fund has not made significant use
of dividend captures but may decide to do so in the future. </FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2><B>7</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Portfolio turnover risk</B></FONT></P>

<P><FONT SIZE=2>The techniques
and strategies contemplated by the Fund might result in a high degree of
portfolio turnover. The Fund cannot accurately predict its securities portfolio
turnover rate, but anticipates that its annual portfolio turnover rate will not
exceed 100% (excluding turnover of securities having a maturity of one year or
less) under normal market conditions, although it could be materially higher
under certain conditions. A high turnover rate (100% or more) necessarily
involves greater expenses to the Fund and may result in realization of net
short-term capital gains.</FONT></P>

<P><FONT SIZE=2><B>Inflation risk</B></FONT></P>

<P><FONT SIZE=2>Inflation risk
is the risk that the purchasing power of assets or income from investment will
be worth less in the future as inflation decreases the value of money. As
inflation increases, the real value of the Fund&#146;s preferred stock and common
stock, and distributions thereon, can decline. In addition, during any periods
of rising inflation, dividend rates of preferred stock issued by the Fund would
likely increase, which would tend to further reduce returns to the Fund&#146;s
common shareholders.</FONT></P>

<P><FONT SIZE=2><B>Tax risk</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s
investment program and the tax treatment of Fund distributions may be affected
by Internal Revenue Service (&#147;IRS&#148;) interpretations of the Code and future
changes in tax laws and regulations, including changes as a result of the
&#147;sunset&#148; provisions that currently apply to the favorable tax treatment of
qualified dividends. There can be no assurance that any portion of the Fund&#146;s
income distributions will not be fully taxable as ordinary income. In order for
the Fund to avoid corporate-level income tax, the Fund must qualify each year
as a regulated investment company under the Code and distribute all of its net
income. </FONT></P>

<P><FONT SIZE=2><B>Market disruption risk</B></FONT></P>

<P><FONT SIZE=2>The war with
Iraq and the continuing presence in that country of coalition forces have had a
substantial impact on the U.S. and world economies and securities markets. The
duration and nature of the war and occupation and the potential costs of
rebuilding the Iraqi infrastructure and political systems cannot be predicted
with any certainty. The war and occupation, terrorism and related geopolitical
risks have led, and may in the future lead, to increased short-term market
volatility and may have adverse long-term effects on U.S. and world economies
and markets generally. Those events could also have an acute effect on
individual issuers or related groups of issuers. These risks could also
adversely affect securities markets, interest rates, auctions, secondary
trading, ratings, credit risk, inflation, deflation and other factors relating
to the APS. </FONT></P>

<P><FONT SIZE=2><B>Anti-takeover provisions</B></FONT></P>

<P><FONT SIZE=2>Certain
provisions of the Fund&#146;s charter and bylaws may be regarded as &#147;anti-takeover&#148;
provisions because they could have the effect of limiting the ability of other
entities or persons to acquire control of the Fund. See &#147;Certain provisions in
the charter and bylaws and certain provisions of Maryland law.&#148; </FONT></P>

<P><FONT SIZE=2><B>TRADING MARKET </B></FONT></P>

<P><FONT SIZE=2>The APS will
not be listed on an exchange. Instead, you may buy or sell shares of APS at an
auction, which normally is held weekly, by submitting orders to a broker-dealer
that has entered into an agreement with the auction agent and the Fund (a
&#147;Broker-Dealer&#148;), or to a broker-dealer that has entered into a separate
agreement with a Broker-Dealer. In addition to the auctions, Broker-Dealers and
other broker-dealers may maintain a secondary trading market in APS outside of
auctions, but may discontinue this activity at any time. There is no assurance
that a secondary market will provide shareholders with liquidity. You may
transfer shares outside of auctions only to or through a Broker-Dealer or a
broker-dealer that has entered into a separate agreement with a Broker-Dealer.</FONT></P>

<P><FONT SIZE=2>The table
below shows the first auction date for the APS and the day on which each subsequent
auction will normally be held for the APS. The first auction date for the APS
will be the business day before the dividend payment date for the initial
dividend period for the APS. The start date for subsequent dividend periods
will normally be the business day following the auction dates unless the then-</FONT></P>

<P><FONT SIZE=2><B>8</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>current
dividend period is a special dividend period or the first day of the subsequent
dividend period is not a business day. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="72%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1><B>Series</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Initial auction</B><FONT SIZE=1><B><BR>
  date</B></FONT></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Subsequent</B><FONT SIZE=1><B><BR>
  auction day</B></FONT></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Series T</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>Tuesday</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Series R</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>Thursday</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>DIVIDENDS AND DIVIDEND PERIODS </B></FONT></P>

<P><FONT SIZE=2>The table
below shows the dividend rate for the initial dividend period on the APS. For
subsequent dividend periods, the APS will pay dividends based on a rate set at
auctions, normally held weekly. In most instances, dividends are paid weekly,
on the day following the end of the dividend period. The rate set at auction
will not exceed the maximum dividend rate. See &#147;Description of APS&#151;Dividends
and dividend periods.&#148; </FONT></P>

<P><FONT SIZE=2>In addition,
the table below shows the date from which dividends on the APS will accumulate
at the initial rate, the dividend payment date for the initial dividend period
and the day on which subseq-nent dividends will normally be paid. If the day on
which dividends normally would be paid is not a business day, then your
dividends will be paid on the first business day that falls after that day.</FONT></P>

<P><FONT SIZE=2>Finally, the
table below shows the number of days of the initial dividend period for the
APS. Subsequent dividend periods generally will be seven days. The dividend
payment date for any special dividend period of more than seven days will be
set out in the notice designating such special dividend period. See
&#147;Description of APS&#151;Dividends and dividend periods&#151;Declaration of special
dividend periods.&#148; </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="99%">
 <TR style="font-size:1px">
  <TD WIDTH="36%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="13%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="7%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Initial<BR>
  dividend<BR>
  rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Date of<BR>
  accumulation<BR>
  at initial rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Dividend
  payment<BR>
  date for initial<BR>
  dividend period</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Subsequent<BR>
  dividend<BR>
  payment day</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM NOWRAP>
  <P ALIGN=RIGHT><FONT SIZE=1><B>Number
  of<BR>
  days of<BR>
  initial<BR>
  dividend<BR>
  period</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  COLSPAN="2" VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=TOP>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Series T</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>Wednesday</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Series R</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>, 2006</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>Friday</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2><B>TAXATION</B></FONT></P>

<P><FONT SIZE=2>Dividends paid
with respect to APS should constitute dividends for federal income tax purposes
to the extent attributable to the Fund&#146;s current or accumulated earnings and
profits. For a further discussion of the tax treatment of dividends paid by the
Fund, see &#147;U.S. federal income tax matters&#151;Taxation of shareholders.&#148;
Distributions of net capital gain, to the extent so designated, will be treated
as long-term capital gains.</FONT></P>

<P><FONT SIZE=2><B>REDEMPTION </B></FONT></P>

<P><FONT SIZE=2>The Fund may
be required to redeem all or a portion of the APS if, for example, the Fund
does not maintain the minimum asset coverage ratio it is required to maintain
as a condition of declaring dividends on its common stock or the minimum
discounted value of eligible portfolio securities specified by the rating
agencies. The Fund voluntarily may redeem shares of APS under certain
conditions. See &#147;Description of APS&#151;Redemption&#148; and &#147;Description of APS&#151;Rating
agency guidelines and asset coverage.&#148; </FONT></P>

<P><FONT SIZE=2><B>LIQUIDATION PREFERENCE </B></FONT></P>

<P><FONT SIZE=2>The
liquidation preference of the APS will be $25,000 per share, plus an amount
equal to accumulated but unpaid dividends. See &#147;Description of
APS&#151;Liquidation.&#148;</FONT></P>

<P><FONT SIZE=2><B>RATINGS </B></FONT></P>

<P><FONT SIZE=2>The APS is
expected to be issued with a rating of &#147;Aaa&#148; from Moody&#146;s and &#147;AAA&#148; from
S&amp;P. In order to maintain these ratings, the Fund must own portfolio
securities of a sufficient value and with adequate credit quality and
diversification to meet the rating agencies&#146; guidelines. See &#147;Description of
APS&#151;Rating agency guidelines and asset coverage.&#148; </FONT></P>

<P ALIGN=RIGHT><FONT  SIZE=2><B>9</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>VOTING RIGHTS</B></FONT></P>

<P><FONT SIZE=2>The Investment
Company Act requires that the holders of the Fund&#146;s preferred stock, voting as
a separate class, have the right to elect at least two directors at all times
and to elect a majority of the directors at any time when two years&#146; dividends
on the preferred stock are unpaid. In each case, the remaining directors are
elected by holders of the Fund&#146;s common stock, voting as a separate class. The
holders of preferred stock vote as a separate class or classes on certain other
matters as required under the Fund&#146;s charter, the Investment Company Act and
Maryland law. See &#147;Description of APS&#151;Voting rights&#148; and &#147;Certain provisions in
the charter and bylaws and certain provisions of Maryland law.&#148;</FONT></P>

<P><FONT SIZE=2><B>U.S. FEDERAL INCOME TAX STATUS OF THE FUND</B></FONT></P>

<P><FONT SIZE=2>The Fund has
elected to be treated, has qualified and intends to continue to qualify as a
regulated investment company for U.S. federal income tax purposes. As a
regulated investment company, the Fund generally is not required to pay
corporate-level federal income taxes on any ordinary income or capital gains
that it distributes to its shareholders as dividends. To maintain its regulated
investment company status, the Fund must meet specified source-of-income and
asset diversification requirements and distribute annually at least 90% of its
ordinary income and realized net short-term capital gains in excess of realized
net long-term capital losses, if any. See &#147;U.S. federal income tax matters.&#148; </FONT></P>

<P><FONT SIZE=2><B>10</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>




<P><A NAME=A002></A><FONT SIZE=5>Financial highlights </FONT></P>

<P><FONT SIZE=2><B>SELECTED PER SHARE DATA AND RATIOS </B></FONT></P>

<P><FONT SIZE=2>The selected financial data
below sets forth per share operating performance data, total investment return,
ratios and supplemental data for each year in the ten-year period ended
December 31, 2005. The financial information should be read in conjunction with
the financial statements of the Fund incorporated by reference into this
Prospectus and the Statement of Additional Information. For the years ended
December 31, 2002, 2003, 2004 and 2005, the financial information set forth
below was audited by Ernst &amp; Young LLP. For prior years, the financial
information set forth below was audited by other independent accountants, whose
reports expressed an unqualified opinion on such financial information. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px">
<TD WIDTH="15%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="29" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>For the Year Ended December 31,</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="29" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2005</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2004</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2003</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2002</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2001</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>2000</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>1999</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>1998</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>1997</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>1996</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Net asset value:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Beginning of year</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>8.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>7.94</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>7.37</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>9.18</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>10.51</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>8.77</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>10.36</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>9.90</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>8.44</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>8.85</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Net investment income(1)(2)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.41</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.54</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.77</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.88</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.89</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.88</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.85</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>0.84</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Net realized and unrealized gain (loss) on investments</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>0.14</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.06</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>0.62</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(1.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(1.23</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.76</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(1.59</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>0.46</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.46</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(0.41</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Dividends on preferred stock from net investment income(1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.04</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.08</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.11</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Total from investment operations applicable to common
stock</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>0.55</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.60</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.37</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(1.03</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(0.54</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2.53</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(0.80</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.24</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2.21</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>0.33</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Dividends on common stock from and in excess of net investment
income</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.80</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.74</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>



<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Return of capital</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(0.04</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Total distributions</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.80</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>(0.74</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Net asset value</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>End of year</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.51</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.75</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>7.94</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>7.37</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.18</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.51</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.77</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.36</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.90</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.44</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Per share market value</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>End of year</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.39</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>11.92</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.96</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.90</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>11.06</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.50</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.31</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>11.25</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>10.13</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.63</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Ratio of expenses to average net assets applicable to common
stock(1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2.24</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.86</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.89</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.44</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.57</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.66</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.46</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.45</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1.53</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Ratio of net investment income to average net assets applicable to
  common stock(1)(2)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>4.51</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>5.63</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.88</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.63</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.63</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.73</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.40</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>8.85</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>9.87</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>7.79</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Total investment return on market value</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(6.16</FONT></P>
</TD>
<TD VALIGN=BOTTOM NOWRAP>
<P><FONT SIZE=1>) %</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>17.35</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>19.82</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(3.04</FONT></P>
</TD>
<TD VALIGN=BOTTOM NOWRAP>
<P><FONT SIZE=1>) %</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>13.67</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>37.37</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>(19.85</FONT></P>
</TD>
<TD VALIGN=BOTTOM NOWRAP>
<P><FONT SIZE=1>) %</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>19.95</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>27.69</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>4.68</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Portfolio turnover rate (2)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>21.99</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>43.71</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>242.69</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>197.27</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>213.48</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>229.70</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>223.78</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>251.19</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>213.57</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>226.21</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=1>Net assets applicable to common stock, end of year (000s
omitted)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,904,206</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,935,437</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,738,286</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,592,970</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,959,697</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2,216,014</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,828,128</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2,131,692</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>2,010,035</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>1,686,443</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Upon the adoption of FAS
  150 in 2003, dividends on preferred stock are included in interest expense
  and are part of net investment income. Absent this change in accounting, per
  share net investment income and dividends on preferred stock would have been
  $0.47 and $0.06, respectively in 2005, $0.58 and $0.03, respectively in 2004
  and $0.78 and $0.03, respectively in 2003.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Beginning in 2004, the Fund
  reduced its use of short-term trading strategies designed to capture dividend
  income and made increased use of realized gains to supplement its investment
  income. Until the Fund utilizes all of its tax loss carryforwards, distributions
  to shareholders are expected to be treated as ordinary income for federal
  income tax purposes. In addition, the reduced use of short-term trading
  strategies reduced the Fund&#146;s portfolio turnover rate during 2004 and 2005.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=RIGHT><FONT SIZE=2><B>11</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>INFORMATION REGARDING SENIOR SECURITIES</B></FONT></P>

<P><FONT SIZE=2>The following table provides
information about the Fund&#146;s CP Notes and RPS as of the dates indicated. Except
as noted in the table, for the years ended December 31, 2002, 2003, 2004 and
2005, the information was audited by Ernst &amp; Young LLP. For prior years,
except as noted in the table, the financial information set forth below was
audited by other independent accountants, whose reports expressed an
unqualified opinion on such financial information. As of May __, 2006, the Fund
retired all of its CP Notes and terminated its CP Note program and the related
backup credit facility. Consequently, no CP Notes are currently outstanding.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px">
<TD WIDTH="22%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>CP
  Notes</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>RPS</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Aggregate<BR>
  Amount<BR>
  Outstanding</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Average
  Market<BR>
  Value<BR>
  per $100,000 of<BR>
  Principal<BR>
  Amount (1)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Asset
  Coverage<BR>
  per $1,000 of<BR>
  Principal<BR>
  Amount (2)<BR>
  (unaudited)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Aggregate<BR>
  Amount<BR>
  Outstanding</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Liquidation<BR>
  Preference<BR>
  and Average<BR>
  Market Value<BR>
  per Share (3)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Asset
  Coverage<BR>
  per Share (4)<BR>
  (unaudited)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>December 31, 2005</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>197,255,382</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>13,188</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>504,983</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>December 31, 2004</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>198,361,375</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>13,278</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>487,087</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>December 31, 2003</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>198,974,940</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>12,249</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>447,657</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>December 31, 2002</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>197,955,439</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>11,573</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>418,594</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>December 31, 2001</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>196,827,285</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>13,497</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>491,939</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>December 31, 2000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>193,187,392</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>15,059</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>543,203</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>December 31, 1999</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>193,842,781</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>13,010</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>465,626</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>December 31, 1998</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>171,002,097</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16,390</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>526,338</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>December 31, 1997</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>98,441,884</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>26,498</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>502,007</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>December 31, 1996</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>98,360,808</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>23,229</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>437,289</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=LEFT>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Average market value is
  calculated as the face value of the CP Notes.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Asset coverage is
  calculated by subtracting the Fund&#146;s total liabilities (not including the CP
  Notes or the RPS) from the Fund&#146;s total assets and dividing that amount by
  the total number of units of CP Notes, where one unit equals $1,000 of CP
  Notes.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Liquidation preference per
  share of RPS refers to the amount that holders of RPS are entitled to receive
  per share before any distributions are made to the holders of the common
  stock, in the event the Fund is ever liquidated. The average market value per
  share is the price at which shares of RPS are remarketed, which is equal to
  the liquidation preference per share.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Asset coverage is
  calculated by subtracting the Fund&#146;s total liabilities (not including the
  RPS) from the Fund&#146;s total assets and dividing that amount by the number of
  RPS outstanding.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>12</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<DIV><A NAME=A003></A><FONT SIZE=2><B>The Fund</B></FONT></DIV>

<P><FONT SIZE=2>The Fund is a closed-end,
diversified management investment company that is registered under the
Investment Company Act. The Fund was incorporated in the State of Maryland on
November 26, 1986 and first offered its common stock to the public on January
21, 1987. The Fund&#146;s common stock is traded on the New York Stock Exchange
under the symbol &#147;DNP.&#148; The Fund&#146;s principal office is located at 55 East
Monroe Street, Suite 3600, Chicago, Illinois 60603, and its telephone number is
(312) 368-5510.</FONT></P>

<P><FONT SIZE=2>The following table provides
information about the Fund&#146;s outstanding stock as of March 31, 2006.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px">
<TD WIDTH="56%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Title of class</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Number
  of shares<BR>
  authorized</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM NOWRAP>
<P ALIGN=RIGHT><FONT SIZE=1><B>Number
  of shares<BR>
  held by the Fund<BR>
  or for its account</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM NOWRAP>
<P ALIGN=RIGHT><FONT SIZE=1><B>Number
  of shares</B><FONT SIZE=1><BR>
  <B>outstanding</B></FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</tr>

<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Common Stock</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>250,000,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>224,505,404</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Preferred Stock</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>100,000,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>5,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series A RPS</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series B RPS</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series C RPS</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series D RPS</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series E RPS</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series M APS</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series W APS</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P STYLE='MARGIN-RIGHT:0IN;MARGIN-LEFT:17.3PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Series F APS</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>4,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><A NAME=A004></A><FONT SIZE=2><B>Use of proceeds</B></FONT></P>

<P><FONT SIZE=2>The net proceeds of this
offering will be approximately $197,843,600 after payment of the sales loads
and estimated offering expenses. The Fund will invest the proceeds of this
offering in accordance with the Fund&#146;s investment objectives and policies as
stated below. We currently anticipate that the Fund will be able to invest substantially
all of the net proceeds of this offering in securities that meet the Fund&#146;s
investment objectives and policies within three months after the completion of
this offering. Pending such investment, it is anticipated that the proceeds
will be invested in short-term securities.</FONT></P>

<DIV><HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER></DIV>

<DIV ALIGN=RIGHT><FONT SIZE=2><B>13</B></FONT></DIV>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=5>Capitalization
  (unaudited)<A NAME=A005></A></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The following table sets
forth the capitalization of the Fund as of March 31, 2006, and as adjusted to
give effect to the issuance of the APS offered hereby (including estimated
offering expenses and sales loads of $2,152,400):</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="67%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="11%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Actual</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>As adjusted</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Preferred stock, $0.001 par value, 100,000,000 shares
authorized</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:17.33PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Auction preferred stock, $25,000 stated value per share, at
  liquidation value, 12,000 shares issued and outstanding, and 20,000 shares
  issued and outstanding, as adjusted</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>300,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:17.33PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Remarketed preferred stock, $100,000 stated value per share, at
  liquidation value, 5,000 shares issued and outstanding</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>500,000,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2><B>Shareholders&#146; equity:</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Common stock, $0.001 par value, 250,000,000 shares authorized,
  224,505,404 shares issued and outstanding(1)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>224,505</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>224,505</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Paid-in surplus</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,897,384,642</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,895,232,242</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Accumulated net realized loss on investments</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>(173,617,078</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>(173,617,078</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Distributions in excess of book net investment income</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>(55,232,685</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>)</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>(55,232,685</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Net unrealized appreciation (depreciation) on investments and foreign
  currency translation</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>248,517,165</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>248,517,165</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT   SIZE=2>Net assets applicable to common stock</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,917,276,549</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,915,124,149</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<div><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT SIZE=1></div>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>None of these outstanding
  shares are held by or for the account of the Fund.</FONT></P>
</TD>
</TR>
</TABLE>

<P><A NAME=A006></A><FONT SIZE=5>Portfolio composition</FONT></P>

<P><FONT SIZE=2>As of March 31, 2006, approximately
75% of the market value of the Fund&#146;s portfolio, exclusive of short-term
instruments, was invested in equity securities and approximately 25% was
invested in other securities. The following table sets forth certain
information with respect to the composition as of March 31, 2006 of the fixed
income portion of the Fund&#146;s investment portfolio, exclusive of short-term
instruments, based on the highest rating assigned to each investment.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="19%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="5%" COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>S&amp;P(1)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Moody&#146;s(1)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Number of<BR>
  issues</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Value</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Percentarge</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>AAA</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Aaa</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>50,005,246</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>7.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>AA</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Aa</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>A</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>A</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>277,283,624</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>41.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>BBB</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Baa</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>327,326,686</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>48.4</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>BB</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Ba</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>21,749,114</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>3.2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Unrated</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Unrated</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>0.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P STYLE='MARGIN-LEFT:17.33PT;TEXT-INDENT:-8.65PT'><FONT SIZE=2>Total:</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>47</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>676,364,670</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>100.0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>%</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT SIZE=1>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>S&amp;P rating categories
  may be modified further by a plus (+) or minus (-) in the case of AA, A, BBB
  and BB ratings.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Moody&#146;s rating categories
  may be modified further by a 1, 2 or 3 in the case of Aa, A, Baa and Ba
  ratings.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

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<TR style="font-size:1px">
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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>14</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=5><BR>The Fund&#146;s
  investments<A NAME=A007></A></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The following section
describes the Fund&#146;s investment objectives and policies, fundamental investment
restrictions, portfolio contents and investment techniques. More complete
information describing the Fund&#146;s investments can be found in the Statement of
Additional Information, which is incorporated into this Prospectus by
reference.</FONT></P>

<P><FONT SIZE=2><B>INVESTMENT OBJECTIVES AND POLICIES</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s primary
investment objectives are current income and long-term growth of income.
Capital appreciation is a secondary objective. There can be no assurance that
the Fund will achieve its investment objectives.</FONT></P>

<P><FONT SIZE=2>The Fund seeks to achieve
its investment objectives by investing primarily in a diversified portfolio of
equity and fixed income securities of companies in the public utilities
industry. Under normal conditions, more than 65% of the Fund&#146;s total assets
will be invested in securities of public utility companies engaged in the production,
transmission or distribution of electric energy, gas or telephone services. The
Fund&#146;s investment objectives stated in the preceding paragraph and its policy
of concentrating its investments in the public utilities industry are
fundamental policies and may not be changed without the approval of the holders
of a &#147;majority&#148; (as defined in the Investment Company Act) of the outstanding
shares of the Fund&#146;s common stock and preferred stock voting together as a
single class, which means the lesser of (i) 67% of the shares represented at a
meeting at which more than 50% of the outstanding shares are represented or
(ii) more than 50% of the outstanding shares.</FONT></P>


<P><FONT SIZE=2>

 The Fund&#146;s investment policies
have been developed to take advantage of the characteristics of securities of
companies in the public utilities industry. Many of these companies have
established a reputation for paying regular dividends and for increasing their
common stock dividends over time.

Investment decisions are
made by the Adviser&#146;s experienced team of portfolio managers and research
analysts primarily on the basis of fundamental research. In evaluating
particular issuers, the Adviser considers a number of factors, including
historical growth rates and rates of return on capital, financial condition and
resources, management skills and strategies and factors specific to the public
utilities industry, such as regulatory environment, energy sources and
environmental compliance measures. With respect to investments in equity
securities, the Adviser seeks stocks that are attractively valued and produce
an attractive level of dividend income. The Adviser also considers the
prospective growth in earnings and dividends in relation to price/earnings
ratios, yield and risk. The Adviser believes that above-average dividend
returns and below-average price/earnings ratios are factors that not only
provide current income but also generally tend to moderate risk and to afford
opportunity for appreciation of securities owned by the Fund. In keeping with
its value approach, the Adviser selects securities selling at what it believes
are discounts to their underlying values and then may hold such securities
until the market values reflect their intrinsic values or longer.</FONT></P>

<P><FONT SIZE=2>The investments of the Fund
in securities of public utility companies are diversified not only in terms of
issuers but also in terms of types of securities since the Fund may invest in
fixed income securities, such as bonds and preferred stocks, as well as common
stocks. The Fund may vary the percentage of assets invested in any one type of
security based upon the Adviser&#146;s evaluation as to the appropriate portfolio
structure for achieving the Fund&#146;s investment objectives under prevailing
market, economic and financial conditions. Certain securities (such as fixed
income securities) are selected on the basis of their current yield, while
other securities are purchased for their income growth potential.</FONT></P>

<P><FONT SIZE=2>See &#147;Investment Policies,
Techniques and Restrictions&#151;Fundamental Investment Restrictions&#148; in the Statement
of Additional Information for a complete list of the fundamental investment
restrictions of the Fund.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>15</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>PORTFOLIO CONTENTS</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s portfolio is
composed principally of the following types of equity and fixed-income
securities.</FONT></P>

<P><FONT SIZE=2><B>Common stocks</B></FONT></P>

<P><FONT SIZE=2>Common stock represents an
equity ownership interest in an issuer. The Fund has substantial exposure to
common stocks. Although common stocks have historically generated higher
average returns than fixed-income securities over the long-term, common stocks
also have experienced significantly more volatility in returns. An adverse
event, such as an unfavorable earnings report, may depress the value of a
particular common stock held by the Fund. Also, the price of common stocks are
sensitive to general movements in the stock market and a drop in the stock
market may depress the price of common stocks to which the Fund has exposure.
Common stock prices fluctuate for many reasons, including changes in investors&#146;
perceptions of the financial condition of an issuer or the general condition of
the relevant stock market, or when political or economic events affecting the
issuers occur. In addition, common stock prices may be sensitive to rising
interest rates, as the costs of capital rise and borrowing costs increase.</FONT></P>

<P><FONT SIZE=2><B>Preferred stocks</B></FONT></P>

<P><FONT SIZE=2>Preferred stock, like common
stock, represents an equity ownership in an issuer. Generally, preferred stock
has a priority of claim over common stock in dividend payments and upon
liquidation of the issuer. Unlike common stock, preferred stock does not
usually have voting rights. Preferred stock in some instances is convertible
into common stock.</FONT></P>

<P><FONT SIZE=2>Although they are equity
securities, preferred stocks have certain characteristics of both debt and
common stock. They are debt-like in that their promised income is usually
contractually fixed. They are common stock-like in that they do not have rights
to precipitate bankruptcy proceedings or collection activities in the event of
missed payments. Furthermore, they have many of the key characteristics of
equity due to their subordinated position in an issuer&#146;s capital structure and
because their quality and value are heavily dependent on the profitability of
the issuer rather than on any legal claims to specific assets or cash flows.</FONT></P>

<P><FONT SIZE=2>In order to be payable,
dividends on preferred stock must be declared by the issuer&#146;s board of
directors or trustees. In addition, distributions on preferred stock may be
subject to deferral and thus may not be automatically payable. Income payments
on some preferred stocks are cumulative, causing dividends and distributions to
accrue even if not declared by the board of directors or trustees or otherwise
made payable. Other preferred stocks are non-cumulative, meaning that skipped
dividends and distributions do not continue to accrue. There is no assurance
that dividends on preferred stocks in which the Fund invests will be declared
or otherwise made payable. The Fund may invest in non-cumulative preferred
stock, although the Adviser would consider, among other factors, their
non-cumulative nature in making any decision to purchase or sell such
securities.</FONT></P>

<P><FONT SIZE=2>Shares of preferred stock
have a liquidation value that generally equals the original purchase price at
the date of issuance. The market values of preferred stock may be affected by
favorable and unfavorable changes impacting the issuers&#146; industries or sectors.
They may also be affected by actual and anticipated changes or ambiguities in
the tax status of the security and by actual and anticipated changes or
ambiguities in tax laws, such as changes in corporate and individual income tax
rates and in the dividends received deduction or the characterization of
dividends as qualified dividends as described below under &#147;U.S. federal income
tax matters&#151;Taxation of shareholders.&#148; </FONT></P>

<P><FONT SIZE=2>
 Because the claim on an issuer&#146;s
earnings represented by preferred stock may become onerous when interest rates
fall below the rate payable on the stock or for other reasons, the issuer may
redeem preferred stock, generally after an initial period of call protection in
which the stock is not redeemable. Thus, in declining interest rate
environments in particular, the Fund&#146;s holdings of higher dividend-</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>16</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>paying preferred stocks may be
reduced and the Fund may be unable to acquire securities paying comparable
rates with the redemption proceeds.</FONT></P>

<P><FONT SIZE=2><B>Corporate bonds and other debt securities</B></FONT></P>

<P><FONT SIZE=2>The Fund also invests in
corporate bonds, debentures and other debt securities of companies in the public
utilities industry or other industries and sectors. Debt securities in which
the Fund invests may pay fixed or variable rates of interest. Bonds and other
debt securities generally are issued by corporations and other issuers to
borrow money from investors. The issuer pays the investor a fixed or variable
rate of interest and normally must repay the amount borrowed on or before
maturity. Certain debt securities are &#147;perpetual&#148; in that they have no maturity
date. Generally, the Fund purchases a fixed income security only if, at the
time of purchase, it is rated investment grade, although the Fund is not
required to divest itself of a security that falls below investment grade. The
Fund does not have a specific maturity policy but generally does not purchase
fixed income securities with maturities longer than 30 years.</FONT></P>

<P><FONT SIZE=2><B>Convertible securities and bonds with warrants attached</B></FONT></P>

<P><FONT SIZE=2>The Fund may invest in
preferred stocks and fixed-income obligations that are convertible into common
stocks of domestic and foreign issuers, and bonds issued as a unit with
warrants to purchase equity or fixed-income securities. Convertible securities
in which the Fund may invest, comprised of both convertible debt and
convertible preferred stock, may be converted at either a stated price or at a
stated rate into underlying shares of common stock. Because of this feature,
convertible securities generally enable an investor to benefit from increases
in the market price of the underlying common stock. Convertible securities
often provide higher yields than the underlying equity securities, but
generally offer lower yields than non-convertible securities of similar
quality. The value of convertible securities fluctuates in relation to changes
in interest rates like bonds, and, in addition, fluctuates in relation to the
market price of the underlying common stock.</FONT></P>

<P><FONT SIZE=2>Bonds with warrants attached
to purchase equity securities have many characteristics of convertible bonds
and their prices may, to some degree, reflect the performance of the underlying
stock. Bonds may also be issued with warrants attached to purchase additional
fixed-income securities at the same coupon rate. A decline in interest rates
would permit the Fund to buy additional bonds at a favorable rate or to sell
the warrants at a profit. If interest rates rise, the warrants would generally
expire with no value.</FONT></P>

<P><FONT SIZE=2><B>Real estate investment trusts</B></FONT></P>

<P><FONT SIZE=2>The Fund may invest in
companies that are treated as real estate investment trusts for federal income
tax purposes (&#147;REITs&#148;). REITs are financial vehicles that pool investors&#146;
capital to acquire, develop and/or finance real estate and provide services to
their tenants. REITs may concentrate their investments in specific geographic
areas or in specific property types, e.g., regional malls, shopping centers,
office buildings, apartment buildings and industrial warehouses. The market
value of REIT shares and the ability of REITs to distribute income may be
adversely affected by numerous factors, including rising interest rates,
changes in the national, state and local economic climate and real estate
conditions, perceptions of prospective tenants of the safety, convenience and
attractiveness of the properties, the ability of the owners to provide adequate
management, maintenance and insurance, the cost of complying with the Americans
with Disabilities Act, increasing competition and compliance with environmental
laws, changes in real estate taxes and other operating expenses, adverse
changes in governmental rules and fiscal policies, adverse changes in zoning
laws and other factors beyond the control of the issuers. In addition,
distributions received by the Fund from REITs may consist of dividends, capital
gains and/or return of capital. REIT income distributions received by the Fund
generally will not be treated as qualified dividends.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>17</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>INVESTMENT TECHNIQUES</B></FONT></P>

<P><FONT SIZE=2>The Fund may from time to
time employ a variety of investment techniques, including those described
below, to hedge against fluctuations in the price of portfolio securities, to
enhance total return or to provide a substitute for the purchase or sale of
securities. Some of these techniques, such as purchases of put and call
options, options on stock indices and stock index futures and entry into
certain credit derivative transactions, are hedges against or substitutes for
investments in equity investments. Other techniques, such as the purchase of
interest rate futures and entry into transactions involving interest rate
swaps, options on interest rate swaps and certain credit derivatives, are
hedges against or substitutes for investments in debt securities. The Fund&#146;s
ability to utilize any of the techniques described below may be limited by
restrictions imposed on its operations in connection with obtaining and maintaining
its qualification as a regulated investment company under the Code.</FONT></P>

<P><FONT SIZE=2><B>Lending of portfolio securities</B></FONT></P>

<P><FONT SIZE=2>In order to generate
additional income, the Fund from time to time lends securities from its
portfolio, with an aggregate value not in excess of 33 1/3% of its
total assets, to brokers, dealers and financial institutions such as banks and
trust companies. At March 31, 2006, the Fund had loaned portfolio securities
with a market value of $748,244,064 to a broker-dealer and received
$779,364,980 of cash collateral. In connection with all loans of securities,
the Fund receives collateral in cash, U.S. government securities, irrevocable
letters of credit or various other specified types of investment-grade
securities. The collateral is required to be maintained in an amount equal to
at least 100% of the current market value of the loaned securities. The Fund
receives a portion of the income earned on the securities held as collateral
and continues to earn income on the loaned securities. Loans of the Fund&#146;s
securities are terminable at any time. The Fund has the right to regain record
ownership of loaned securities to exercise beneficial rights such as voting
rights and rights to interest or other distributions. The Fund may pay
reasonable fees to persons unaffiliated with the Fund for services in arranging
such loans. With respect to lending of portfolio securities, there is the risk
of failure by the borrower to return the securities involved in such
transactions, in which event the Fund may incur a loss. In addition, securities
lending transactions may reduce the amount of distributions that are treated as
qualified dividend income eligible for the reduced federal income tax rate.</FONT></P>

<P><FONT SIZE=2><B>Dividend capture trading</B></FONT></P>

<P><FONT SIZE=2>The Fund may seek to enhance
the level of dividend income it receives by engaging in dividend capture
trading. In a dividend capture trade, the Fund purchases stock of a particular
issuer on or prior to the ex-dividend date for that stock. Because the Fund is
the holder of the stock on the ex-dividend date, it is entitled to receive the
dividend on the stock. After the ex-dividend date, the Fund seeks an
opportunity to sell the stock and reinvest the proceeds in the stock of a
different issuer on or prior to that stock&#146;s ex-dividend date. The use of captures
may enable the Fund to collect more dividends per quarter than it would have
collected if it held the same stock throughout the entire quarter. The use of
dividend capture strategies exposes the Fund to increased trading costs and the
potential for capital loss.</FONT></P>

<P><FONT SIZE=2><B>When-issued and delayed delivery transactions</B></FONT></P>

<P><FONT SIZE=2>New issues of preferred and
debt securities may be offered on a when-issued or delayed delivery basis,
which means that delivery and payment for the securities normally take place
within 45 days after the date of the commitment to purchase. The payment
obligation and the dividends that will be received on the securities are fixed
at the time the buyer enters into the commitment. The Fund will make
commitments to purchase securities on a when-issued or delayed delivery basis
only with the intention of acquiring the securities, but may sell these
securities before the settlement date if the Adviser deems it advisable. No
additional when-issued or delayed delivery commitments will be made if more
than 20% of the Fund&#146;s total assets would be so committed. Securities purchased
on a when-issued or delayed delivery basis may be subject to changes in value
based upon the public&#146;s perception of the creditworthiness of the issuer and
changes, real or anticipated, in the level of interest rates. Securities</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>18</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>purchased or sold on a
when-issued or delayed delivery basis may expose the Fund to risk because they
may experience these fluctuations prior to their actual delivery. The Fund will
not accrue income with respect to a debt security it has purchased on a
when-issued or delayed delivery basis prior to its stated delivery date but
will accrue income on a delayed delivery security it has sold. Purchasing or
selling securities on a when-issued or delayed delivery basis can involve the
additional risk that the yield available in the market when the delivery takes
place actually may be higher than that obtained in the transaction itself. The
Fund will establish and maintain with its custodian a segregated account
consisting of liquid securities equal at all times to the amount of the Fund&#146;s
when-issued and delayed delivery purchase commitments. Placing securities
rather than cash in the segregated account may have a leveraging effect on the
Fund&#146;s net asset value per share; that is, to the extent that the Fund remains
substantially fully invested in securities at the same time that it has
committed to purchase securities on a when-issued or delayed delivery basis,
greater fluctuations in its net asset value per share may occur than if it had
set aside cash to satisfy its purchase commitments.</FONT></P>

<P><FONT SIZE=2><B>Temporary investments</B></FONT></P>

<P><FONT SIZE=2>During unusual market
circumstances, the Fund may invest temporarily in cash, money market
securities, money market mutual funds or cash equivalents, which may be
inconsistent with the Fund&#146;s investment objectives. Cash equivalents are highly
liquid, short-term securities such as commercial paper, time deposits,
certificates of deposit, short-term notes and short-term U.S. government
obligations. To the extent that the Fund engages in such defensive investments,
it may not achieve its investment objectives.</FONT></P>

<P><FONT SIZE=2><B>Portfolio turnover</B></FONT></P>

<P><FONT SIZE=2>The Fund may sell securities
to realize capital losses that can be used to offset capital gains (but not
dividends or other ordinary income) or in connection with dividend capture
strategies. Use of these strategies will increase portfolio turnover. The Fund
cannot accurately predict its securities portfolio turnover rate, but
anticipates that its annual portfolio turnover rate will not exceed 100%
(excluding turnover of securities having a maturity of one year or less) under
normal market conditions, although it could be materially higher under certain
conditions. A high turnover rate (100% or more) necessarily involves greater
expenses to the Fund and may result in realization of net short-term capital
gains.</FONT></P>

<P><FONT SIZE=2><B>USE OF LEVERAGE</B></FONT></P>

<P><FONT SIZE=2>As of May __, 2006, the
Fund&#146;s leverage consists of five series of outstanding RPS with an aggregate
liquidation preference of $500 million and three series of Existing APS with an
aggregate liquidation preference of $300 million. The issuance of $200 million
of APS in this offering will increase the Fund&#146;s total leverage to $1 billion.
As of May __, 2006, the Fund retired all of its CP Notes and terminated its CP
Note program and the related backup credit facility. As a result, the Fund
currently has no Borrowings, although it could enter into Borrowings in the
future. The Fund&#146;s fundamental investment restrictions limit the Fund&#146;s Borrowings
to an aggregate amount not exceeding 15% of the value of the Fund&#146;s total
assets at the time of any such Borrowing (exclusive of all obligations on
amounts held as collateral for securities loaned to other persons to the extent
that such obligations are secured by assets of at least equivalent value).
However, for so long as the Fund&#146;s preferred stock is rated by S&amp;P, the
Fund will limit the aggregate amount of its Borrowings to 10% of the value of
its total assets and will not incur any Borrowings, unless advised by S&amp;P
that such Borrowings would not adversely affect S&amp;P&#146;s then-current rating
of the preferred stock.</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s use of leverage
is premised upon the expectation that the Fund&#146;s preferred stock dividends and
interest on any Borrowings will be lower than the return the Fund achieves on
its investments with the proceeds of the issuance of preferred stock and any
Borrowings. Such difference in return may result from the Fund&#146;s higher credit
rating or the short-term nature of its borrowing compared to the long-term
nature of its investments. Since the total assets of the Fund (including the
assets</FONT></P>

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</TD>
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</TD>
</TR>
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<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>19</B></FONT></P>
</TD>
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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>obtained from leverage) will
be invested in the potentially higher yielding portfolio investments or
portfolio investments with the potential for capital appreciation, the holders
of common stock should be the beneficiaries of any incremental return. Should
the differential between the underlying assets and cost of leverage narrow, any
incremental return to common shareholders will be reduced. Furthermore, if
long-term rates rise or the Fund otherwise incurs losses on its investments,
the Fund&#146;s net asset value attributable to its common stock will reflect the
decline in the value of portfolio holdings resulting therefrom.</FONT></P>

<P><FONT SIZE=2>Any future Borrowings will
have seniority over the APS, the Existing APS and the RPS and payments to
holders of APS and RPS in liquidation or otherwise will be subject to the prior
payment of any Borrowings. By the same token, the Fund&#146;s preferred stock,
including the APS, the Existing APS and the RPS, will have seniority over the
Fund&#146;s common stock. Consequently, changes in the value of the Fund&#146;s portfolio
will be borne initially by holders of the Fund&#146;s common stock. If there is a
net decrease in the value of the Fund&#146;s investment portfolio, the use of
leverage will likely cause a greater decrease in the net asset value per common
share than if the Fund were not leveraged.</FONT></P>

<P><FONT SIZE=2>To the extent the income or
capital appreciation derived from securities purchased with funds received from
leverage exceeds the cost of leverage, the Fund&#146;s return to common shareholders
will be greater than if leverage had not been used. Conversely, if the income
or capital appreciation from the securities purchased with such funds is not
sufficient to cover the cost of leverage or if the Fund incurs capital losses,
the return of the Fund to common shareholders will be less than if leverage had
not been used. Capital raised through the issuance of preferred stock and any
Borrowings is subject to dividend payments and interest costs that may or may
not exceed the income and appreciation on the assets purchased.</FONT></P>

<P><FONT SIZE=2>Under the Investment Company
Act, the Fund is not permitted to issue preferred stock unless immediately
after such issuance the net asset value of the Fund&#146;s portfolio is at least
200% of the liquidation value of the outstanding shares of preferred stock
(i.e., such liquidation value may not exceed 50% of the value of the Fund&#146;s
total assets). In addition, the Fund is not permitted to declare any cash
dividend or other distribution on its common stock unless, at the time of such
declaration, the net asset value of the Fund&#146;s portfolio (determined after
deducting the amount of such dividend or distribution) is at least 200% of such
liquidation value. So long as the Fund has preferred stock outstanding, the
Fund intends, to the extent possible, to purchase or redeem shares of preferred
stock from time to time to maintain coverage of any outstanding shares of
preferred stock of at least 200%.</FONT></P>

<P><FONT SIZE=2>Under the Investment Company
Act, the Fund is not permitted to incur indebtedness unless immediately after
such borrowing the Fund has an asset coverage of at least 300% of the aggregate
outstanding principal balance of indebtedness (i.e., such indebtedness may not
exceed 33 1/3% of the value of the Fund&#146;s total assets). Additionally, under the
Investment Company Act, the Fund may not declare any dividend or other
distribution upon any class of its stock, or purchase any such stock, unless
the aggregate indebtedness of the Fund has, at the time of the declaration of
any such dividend or distribution or at the time of any such purchase, an asset
coverage of at least 300% after deducting the amount of such dividend,
distribution, or purchase price, as the case may be.</FONT></P>

<P><FONT SIZE=2><B>INTEREST RATE TRANSACTIONS</B></FONT></P>

<P><FONT SIZE=2>In connection with the
Fund&#146;s use of leverage through its preferred stock and any Borrowings, the Fund
may enter into interest rate swap or cap transactions. Interest rate swaps
involve the Fund&#146;s agreement with the swap counterparty to pay a fixed rate
payment in exchange for the counterparty paying the Fund a variable rate
payment that is intended to approximate the Fund&#146;s variable rate payment
obligation on its preferred stock or any variable rate Borrowings. The payment
obligation would be based on the notional amount of the swap. The Fund&#146;s
payment obligations under the swap are general unse-</FONT></P>

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</TD>
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</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>20</B></FONT></P>
</TD>
</TR>
</TABLE>
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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>cured obligations of the
Fund and are ranked senior to distributions under the common stock and
preferred stock.</FONT></P>

<P><FONT SIZE=2>The Fund may use an interest
rate cap, which would require it to pay a premium to the cap counter-party and
would entitle it, to the extent that a specified variable rate index exceeds a
predetermined fixed rate, to receive from the counterparty payment of the
difference based on the notional amount. The Fund would use interest rate swaps
or caps only with the intent to reduce or eliminate the risk that an increase
in short-term interest rates could have on common share net earnings as a
result of leverage.</FONT></P>

<P><FONT SIZE=2>

 The Fund will usually enter into swaps or caps on a net
basis; that is, the two payment streams will be netted out in a cash settlement
on the payment date or dates specified in the instrument, with the Fund receiving
or paying, as the case may be, only the net amount of the two payments. The
Fund intends to maintain in a segregated account with its custodian cash or
liquid securities having a value at least equal to the Fund&#146;s net payment
obligations under any swap transaction, marked to market daily. Under certain
circumstances, the Fund may be required to pledge the assets in such segregated
account to the counterparty. Any such pledge will result in the counterparty
having a lien on the assets in the segregated account and the Fund&#146;s ability to
make use of those assets will be limited. </FONT></P>

<P><FONT SIZE=2>
 The use of interest rate swaps and
caps is a highly specialized activity that involves investment techniques and
risks different from those associated with ordinary portfolio security
transactions.

Depending on the state of
interest rates in general, the Fund&#146;s use of interest rate swaps or caps could
enhance or harm the overall performance on the common stock. To the extent
there is a decline in interest rates, the value of the interest rate swap or
cap could decline, and could result in a decline in the net asset value of the
common stock. In addition, if short-term interest rates are lower than the
Fund&#146;s fixed rate of payment on the interest rate swap, the swap will reduce
common stock net earnings. If, on the other hand, short-term interest rates are
higher than the fixed rate of payment on the interest rate swap, the swap will
enhance common stock net earnings. Buying interest rate caps could enhance the
performance of the common stock by providing a maximum leverage expense. Buying
interest rate caps could also decrease the net earnings of the common stock in
the event that the premium paid by the Fund to the counterparty exceeds the
additional amount the Fund would have been required to pay had it not entered
into the cap agreement. The Fund has no current intention of selling an
interest rate swap or cap. The Fund will not enter into interest rate swap or
cap transactions in an aggregate notional amount that exceeds the outstanding
amount of the Fund&#146;s leverage. </FONT></P>



<P><FONT SIZE=2>
Interest rate swaps and caps do not involve the
delivery of securities or other underlying assets or principal. Accordingly,
the risk of loss with respect to interest rate swaps is limited to the net
amount of interest payments that the Fund is contractually obligated to make.
If the counterparty defaults, the Fund would not be able to use the anticipated
net receipts under the swap or cap to offset the dividend payments on its
preferred stock or interest payments on any Borrowings. Depending on whether
the Fund would be entitled to receive net payments from the counterparty on the
swap or cap, which in turn would depend on the general state of short-term
interest rates at that point in time, such a default could negatively impact
the performance of the common stock.</FONT></P>

<P><FONT SIZE=2>Although this will not
guarantee that the counterparty does not default, the Fund will not enter into
an interest rate swap or cap transaction with any counterparty that the Adviser
believes does not have the financial resources to honor its obligation under
the interest rate swap or cap transaction. Further, the Adviser will
continually monitor the financial stability of a counterparty to an interest
rate swap or cap transaction in an effort to proactively protect the Fund&#146;s
investments.</FONT></P>

<P><FONT SIZE=2>In addition, at the time the
interest rate swap or cap transaction reaches its scheduled termination date,
there is a risk that the Fund will not be able to obtain a replacement
transaction or that the terms of the replacement will not be as favorable as on
the expiring transaction. If this occurs, it could have a negative impact on
the performance of the common stock.</FONT></P>

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</TD>
</TR>
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<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>21</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The Fund&#146;s
  investments</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The Fund may choose or be
required to redeem some or all of its preferred stock or prepay any of its
future Borrowings. This redemption would likely result in the Fund seeking to
terminate early all or a portion of any swap or cap transaction. Such early
termination of a swap could result in a termination payment by or to the Fund.
A termination payment by the Fund would result in a reduction in common share
net earnings. An early termination of a cap could result in a termination
payment to the Fund.</FONT></P>

<P><A NAME=A008></A><FONT SIZE=5>Risks</FONT></P>

<P><FONT SIZE=2>Risk is inherent in all
investing. Investing in any investment company security involves risk,
including the risk that you may receive little or no return on your investment
or that you may lose part or all of your investment. Therefore, before
investing you should consider carefully the following risks that you assume
when you invest in the APS.</FONT></P>

<P><FONT SIZE=2><B>RISKS OF INVESTING IN THE APS</B></FONT></P>

<P><FONT SIZE=2><B>Auction risk</B></FONT></P>

<P><FONT SIZE=2>The dividend rate for the
APS normally is set through an auction process. In the auction, holders of APS
may indicate the dividend rate at which they would be willing to hold or sell
their APS or purchase additional APS. The auction also provides liquidity for
the sale of APS. An auction fails if there are more shares of APS offered for
sale than there are buyers for shares of APS. You may not be able to sell your
APS at an auction if the auction fails. Finally, if you elect to retain your
APS in connection with an auction, and all other holders also elect to retain
their APS in connection with that auction, then the applicable dividend rate
for the next dividend period will be the &#147;all-hold&#148; rate, which may be less
than the market rate. See &#147;Description of APS&#148; and &#147;The Auction&#151;Auction
procedures.&#148;</FONT></P>

<P><FONT SIZE=2><B>Secondary market risk</B></FONT></P>

<P><FONT SIZE=2>If you try to sell shares of
your APS between auctions, you may not be able to sell any or all of your
shares of APS or you may not be able to sell them for $25,000 per share plus
accumulated dividends. If the Fund has designated a special dividend period,
changes in interest rates could affect the price you would receive if you sold
your shares in the secondary market. Broker-Dealers that maintain a secondary
trading market for the APS are not required to maintain this market, and the
Fund is not required to redeem shares either if an auction or an attempted
secondary market sale fails because of a lack of buyers. The APS is not listed
on a stock exchange or traded on the NASDAQ stock market. If you sell your APS
to a Broker-Dealer between auctions, you may receive less than the price you
paid for them, especially if market interest rates have risen since the last
auction.</FONT></P>

<P><FONT SIZE=2><B>Ratings and asset coverage risk</B></FONT></P>

<P><FONT SIZE=2>While it is expected that
Moody&#146;s will assign a rating of &#147;Aaa&#148; and S&amp;P will assign a rating of &#147;AAA&#148;
to the APS, such ratings will not eliminate or necessarily mitigate the risks
of investing in the APS. Moody&#146;s or S&amp;P could withdraw or downgrade the
ratings it assigns to the APS, which may make your APS less liquid at an
auction or in the secondary market. If Moody&#146;s or S&amp;P withdraws its rating
or downgrades the APS, the Fund may alter its portfolio or redeem shares of APS
in an effort to reinstate or improve, as the case may be, the rating, although
there is no assurance that the Fund will be able to do so to the extent
necessary to restore the prior rating. The Fund&#146;s ability to meet the asset
coverage requirements of the Investment Company Act may be impaired by
decreases in the market value of the Fund&#146;s total assets, including those
assets attributable to the Fund&#146;s preferred stock and Borrowings. The Fund also
may voluntarily redeem shares of APS under certain circumstances. See
&#147;Description of APS&#151;Rating agency guidelines and asset coverage&#148; for a
description of the asset maintenance tests the Fund must meet.</FONT></P>

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</TD>
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<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>22</B></FONT></P>
</TD>
</TR>
</TABLE>
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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Subordination risk</B></FONT></P>

<P><FONT SIZE=2>As permitted by its
fundamental investment policies, the Fund uses various forms of financial
leverage. The issuance of the APS is only one component of the Fund&#146;s use of
leverage, which also includes five series of outstanding RPS with an aggregate
liquidation preference of $500 million and three series of Existing APS with an
aggregate liquidation preference of $300 million. Holders of APS will have
equal liquidation and distribution rights to the holders of the Existing APS
and the RPS. As of May __, 2006, the Fund retired all of its CP Notes and
terminated its CP Note program and the related backup credit facility. As a
result, the Fund currently has no Borrowings, although it could enter into
Borrowings in the future. In connection with the Fund&#146;s use of leverage through
its preferred stock and any Borrowings, the Fund may enter into interest rate
swap or cap transactions. If the Fund enters into Borrowings or interest rate
swaps or caps, the rights of lenders and counter-parties in those transactions
will be senior to the rights of holders of the Fund&#146;s preferred stock, including
the APS. Dividends, distributions and other payments to holders of APS in
liquidation or otherwise would be subject to prior payment of the Fund&#146;s
obligations to the lenders and counter-parties with respect to any Borrowings
or interest rate swaps or caps. If the Fund were in default on any such
obligations, it would not be permitted to declare, pay or set apart for payment
any dividend or other distribution in respect of the APS, or call for
redemption or redeem any shares of APS.</FONT></P>

<P><FONT SIZE=2><B>Restrictions on dividends and other distributions</B></FONT></P>

<P><FONT SIZE=2>Restrictions imposed on the
declaration and payment of dividends or other distributions to the holders of
the Fund&#146;s common stock and preferred stock, both by the Investment Company Act
and by requirements imposed by Moody&#146;s, S&amp;P or a substitute rating agency,
might impair the Fund&#146;s ability to satisfy minimum distribution requirements
that it must satisfy to receive favorable treatment as a regulated investment
company for federal income tax purposes. While the Fund has the ability to
redeem shares of APS to enable the Fund to distribute its income to the extent
required to maintain its favorable tax treatment as a regulated investment
company under the Code, there can be no assurance that such redemptions can be
effected in time to meet the requirements of the Code. See &#147;U.S. federal income
tax matters.&#148;</FONT></P>

<P><FONT SIZE=2><B>Interest rate risk</B></FONT></P>

<P><FONT SIZE=2>The APS pays dividends based
on short-term interest rates. If short-term interest rates rise, dividend rates
on the APS will also rise. A sharp increase in short-term interest rates could
cause a &#147;negative arbitrage&#148; situation, where the dividend rate on the APS
would exceed the yield on the Fund&#146;s portfolio securities. In addition, rising
market interest rates could negatively impact the value of the Fund&#146;s investment
portfolio, reducing the amount of assets serving as asset coverage for the APS.
See &#147;The Fund&#146;s investments&#151;Use of leverage.&#148;</FONT></P>

<P><FONT SIZE=2><B>RISKS OF INVESTING IN THE FUND</B></FONT></P>

<P><FONT SIZE=2><B>Investment and market risk</B></FONT></P>

<P><FONT SIZE=2>An investment in the Fund is
subject to investment risk, including the possible loss of the entire amount
invested. An investment in the Fund represents an indirect investment in the
securities owned by the Fund, which are generally traded on a securities
exchange or in the over-the-counter markets. The value of these securities,
like other market investments, may move up or down, sometimes rapidly and
unpredictably.</FONT></P>

<P><FONT SIZE=2><B>Income risk</B></FONT></P>

<P><FONT SIZE=2>The income that holders of
preferred stock and common stock receive from the Fund is based primarily on
the dividends and interest the Fund earns from its investments, which can vary
widely over the short and long term. If prevailing market interest rates drop,
distribution rates of the Fund&#146;s preferred stock holdings and any bond holdings
and preferred and common shareholders&#146; income from</FONT></P>

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</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>23</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>the Fund could drop as well.
The Fund&#146;s income also would likely be affected adversely when prevailing
short-term interest rates increase and the Fund is utilizing leverage.</FONT></P>

<P><FONT SIZE=2><B>Management risk</B></FONT></P>

<P><FONT SIZE=2>The Fund is subject to
management risk because it is an actively managed portfolio. The Adviser and
the individual portfolio managers apply investment techniques and risk analyses
in making investment decisions for the Fund, but there can be no guarantee that
these will produce the desired results.</FONT></P>

<P><FONT SIZE=2><B>Leverage risk</B></FONT></P>

<P><FONT SIZE=2>The Fund uses financial
leverage on an ongoing basis for investment purposes. Leverage risk includes
the risk associated with the issuance of preferred stock and any future
Borrowings to leverage the Fund&#146;s common stock. If the dividend rate on the preferred
stock or the interest rate on any future Borrowings exceeds the net rate of
return on the Fund&#146;s portfolio, the leverage will result in a lower net asset
value than if the Fund were not leveraged, and the Fund&#146;s ability to pay
dividends and meet its asset coverage requirements on its preferred stock,
including the APS, would be reduced. Similarly, any decline in the net asset
value of the Fund&#146;s investments could result in the Fund being in danger of
failing to meet its asset coverage requirements or of losing its Aaa and AAA
ratings on its preferred stock or, in an extreme case, the Fund&#146;s current
investment income might not be sufficient to meet the dividend requirements on
its preferred stock. To counteract such an event, the Fund might need to liquidate
investments in order to fund a redemption of some or all of its preferred
stock.</FONT></P>


<P><FONT SIZE=2>
 It is currently anticipated that, taking into account the APS being
offered by this Prospectus, the amount of leverage will represent up to 35% of
the Fund&#146;s total assets.</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s leveraged capital
structure creates special risks not associated with unleveraged funds having
similar investment objectives and policies. These include the possibility of
higher volatility of the Fund&#146;s net asset value and the asset coverage of the
Fund&#146;s preferred stock. This means that if there is a net decrease in the value
of the Fund&#146;s investment portfolio, the use of leverage will likely cause a
greater decrease in the net asset value per common share and the market value
per common share than if the Fund were not leveraged.</FONT></P>

<P><FONT SIZE=2>While the Fund may from time
to time consider reducing leverage in response to actual or anticipated changes
in interest rates in an effort to mitigate the increased volatility of current
income and net asset value associated with leverage, we cannot assure you that
the Fund will actually reduce leverage in the future or that any reduction, if
undertaken, will be effective. Changes in the future direction of interest
rates are very difficult to predict accurately. If the Fund were to reduce
leverage based on a prediction about future changes to interest rates and that
prediction turned out to be incorrect, the reduction in leverage would likely
cause a decrease in the Fund&#146;s net asset value relative to what it would have
been if the Fund had not reduced leverage. The Fund may decide that this risk
outweighs the likelihood of achieving the desired reduction in volatility of
income and net asset value if the prediction were to turn out to be correct,
and determine not to reduce leverage as described above.</FONT></P>

<P><FONT SIZE=2>
Because the fee paid
to the Adviser is calculated on the basis of the Fund&#146;s managed assets (which
equals the aggregate net asset value of the common stock plus the aggregate
liquidation preference of the preferred stock and the aggregate principal
amount of any Borrowings), the advisory fee will be higher when leverage is
utilized, giving the Adviser an incentive to utilize leverage.</FONT></P>

<P><FONT SIZE=2><B>Utilities industry risk</B></FONT></P>

<P><FONT SIZE=2>The Fund invests a
significant portion of its assets in securities of issuers in the public
utilities industry. This may make the Fund more susceptible to adverse
economic, political or regulatory occurrences affecting this sector. As
concentration in a sector increases, so does the potential for fluctuation in
the value of the Fund&#146;s assets.</FONT></P>

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</TD>
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</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>24</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<P>&nbsp;</P>
</TD>
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<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Certain segments of the
industry and individual companies within such segments may not perform as well
as the industry as a whole. Many public utility companies historically have
been subject to risks of increases in fuel and other operating costs, high
interest costs on borrowings needed for capital improvement programs and costs
associated with compliance with and changes in environmental and other
governmental regulations. Telecommunications companies in particular have been
subject to risks associated with increasing levels of competition, technology
substitution (i.e. wireless, broadband and voice over Internet protocol, or
VoIP), industry overcapacity, consolidation and regulatory uncertainty. Regulatory
changes with respect to nuclear and conventionally fueled power generating and
transmission facilities could increase costs or impair the ability of public
utility companies to operate and utilize such facilities, thus reducing public
utility companies&#146; earnings or resulting in losses.</FONT></P>


<P><FONT SIZE=2>
 Rates of return on
investment of certain public utility companies are subject to review by
government regulators. There can be no assurance that changes in regulatory
policies or accounting standards will not negatively affect public utility
companies&#146; earnings or dividends. Costs incurred by public utility companies,
such as fuel and purchased power costs, often are subject to immediate market
action resulting from such things as political or military forces operating in
geographic regions where oil production is concentrated or global or regional
weather conditions, such as droughts. Rates of return of public utility
companies generally are subject to review and limitation by state public
utility commissions, which ordinarily results in a lag or an absence of
correlation between costs and return. It is also possible that costs may not be
offset by return.</FONT></P>

<P><FONT SIZE=2>Public utility companies
have, in recent years, been affected by increased competition, which could
adversely affect the profitability or viability of such companies. Electric
public utility companies may also be subject to increasing economic pressures
due to deregulation of generation, transmission and other aspects of their
business.</FONT></P>

<P><FONT SIZE=2><B>Investments in securities of foreign issuers</B></FONT></P>

<P><FONT SIZE=2>While the Fund is prohibited
from investing 15% or more of its assets in securities of foreign issuers, the
Fund may be exposed to certain risks as a result of foreign investments.
Investing in securities of foreign issuers involves certain considerations not
typically associated with investing in securities of U.S. companies, including
(a) controls on foreign investment and limitations on repatriation of invested
capital and on the Fund&#146;s ability to exchange local currencies for U.S.
dollars, (b) greater price volatility, substantially less liquidity and
significantly smaller market capitalization of securities markets, (c) currency
devaluations and other currency exchange rate fluctuations, (d) more
substantial government involvement in the economy, (e) higher rates of
inflation, (f) less government supervision and regulation of the securities
markets and participants in those markets and (g) political uncertainty and
other considerations. The Fund will treat investments in countries with
repatriation restrictions as illiquid for purposes of any applicable
limitations under the Investment Company Act; however, as a closed-end fund,
the Fund is not currently limited under the Investment Company Act in the
amount of illiquid securities it may acquire. Because of the limited forward
market for the purchase of U.S. dollars in most foreign countries and the
limited circumstances in which the Fund expects to hedge against declines in
the value of foreign country currencies generally, the Fund will be adversely
affected by devaluations of foreign country currencies against the U.S. dollar
to the extent the Fund is invested in securities denominated in currencies
experiencing a devaluation. The Fund&#146;s fundamental investment policies permit
the Fund to enter into currency hedging transactions.</FONT></P>

<P><FONT SIZE=2>In addition, accounting,
auditing and financial reporting standards in foreign countries are different
from U.S. standards. As a result, certain material disclosures may not be made
and less information may be available to the Fund and other investors than
would be the case if the Fund&#146;s investments were restricted to securities of
U.S. issuers. Moreover, it may be more difficult to obtain a judgment in a
court outside the United States. Interest and dividends paid on securities held
by the Fund and gains from the disposition of such securities may be subject to
withholding taxes imposed by foreign countries.</FONT></P>

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</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>25</B></FONT></P>
</TD>
</TR>
</TABLE>
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</TD>
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<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
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</TD>
</TR>
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<P><FONT SIZE=2><B>Common stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund has exposure to
common stocks. Although common stocks have historically generated higher
average returns than fixed-income securities over the long-term, common stocks
also have experienced significantly more volatility in returns. An adverse
event, such as an unfavorable earnings report, may depress the value of a particular
common stock held by the Fund. Also, the price of common stocks are sensitive
to general movements in the stock market and a drop in the stock market may
depress the price of common stocks to which the Fund has exposure. Common stock
prices fluctuate for many reasons, including changes in investors&#146; perceptions
of the financial condition of an issuer or the general condition of the
relevant stock market, or when political or economic events affecting the
issuers occur. In addition, common stock prices may be sensitive to rising
interest rates, as the costs of capital rise and borrowing costs increase.</FONT></P>

<P><FONT SIZE=2><B>Small and mid cap stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund may invest in
companies of any market capitalization. The Fund&#146;s investments in small and
medium-sized companies may be subject to more abrupt or erratic movements in
price than its investments in larger, more established companies because the
securities of such companies are less well-known, held primarily by insiders or
institutional investors or may trade less frequently and in lower volume.
Furthermore, small and medium-sized companies are more likely to experience
greater or more unexpected changes in their earnings and growth prospects. Such
companies often have limited financial resources or may depend on a few key
employees, and the products or technologies of such companies may be at a
relatively early stage of development or not fully tested.</FONT></P>

<P><FONT SIZE=2><B>Preferred stock risk</B></FONT></P>

<P><FONT SIZE=2>The Fund has exposure to
preferred stocks. Preferred stocks involve credit risk, which is the risk that
a preferred stock will decline in price, or fail to pay dividends when
expected, because the issuer experiences a decline in its financial status. In
addition to credit risk, investment in preferred stocks involves certain other
risks. Certain preferred stocks contain provisions that allow an issuer under
certain conditions to skip distributions (in the case of &#147;non-cumulative&#148;
preferred stocks) or defer distributions (in the case of &#147;cumulative&#148; preferred
stocks). If the Fund owns a preferred stock that is deferring its
distributions, the Fund may be required to report income for tax purposes while
it is not receiving income on this position. Preferred stocks often contain
provisions that allow for redemption in the event of certain tax or legal changes
or at the issuers&#146; call. In the event of redemption, the Fund may not be able
to reinvest the proceeds at comparable rates of return. Preferred stocks
typically do not provide any voting rights, except in cases when dividends are
in arrears beyond a certain time period, which varies by issue. Preferred
stocks are subordinated to bonds and other debt instruments in a company&#146;s
capital structure in terms of priority to corporate income and liquidation
payments, and therefore are subject to greater credit risk than those debt
instruments. Preferred stocks may be significantly less liquid than many other
securities, such as U.S. government securities, corporate debt or common stock.</FONT></P>

<P><FONT SIZE=2><B>Issuer risk</B></FONT></P>

<P><FONT SIZE=2>The value of common and
preferred stocks may decline for a number of reasons which directly relate to
the issuer, such as management performance, leverage and reduced demand for the
issuer&#146;s goods and services.</FONT></P>

<P><FONT SIZE=2><B>Debt securities risk</B></FONT></P>

<P><FONT SIZE=2>In addition to credit risk,
investment in debt securities carries certain risks, including:</FONT></P>

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</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><I>Redemption
  risk </I>&#151; Debt
  securities sometimes contain provisions that allow for redemption in the
  event of tax or security law changes in addition to call features at the
  option of the issuer. In the event of a redemption, the Fund may not be able
  to reinvest the proceeds at comparable rates of return.</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

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</TD>
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<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>26</B></FONT></P>
</TD>
</TR>
</TABLE>
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</TD>
</TR>
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<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<BR>

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</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><I>Limited
  voting rights </I>&#151;
  Debt securities typically have limited voting rights, except in cases when
  interest payments have not been made and the issuer is in default.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><I>Liquidity
  </I>&#151; Certain debt
  securities may be substantially less liquid than many other securities, such
  as U.S. government securities or common stocks.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Credit risk</B></FONT></P>

<P><FONT SIZE=2>Credit risk is the risk that
an issuer of a preferred or debt security will become unable to meet its
obligation to make dividend, interest and principal payments. In general, lower
rated preferred or debt securities carry a greater degree of credit risk. If
rating agencies lower their ratings of preferred or debt securities in the
Fund&#146;s portfolio, the value of those obligations could decline, which could
jeopardize the rating agencies&#146; ratings of the preferred stock issued by the
Fund. In addition, the underlying revenue source for a preferred or debt
security may be insufficient to pay dividends, interest or principal in a
timely manner. Because the primary source of income for the Fund is the
dividend, interest and principal payments on the preferred or debt securities
in which it invests, any default by an issuer of a preferred or debt security
could have a negative impact on the Fund&#146;s ability to pay dividends to its
investors. Even if the issuer does not actually default, adverse changes in the
issuer&#146;s financial condition may negatively affect its credit rating or
presumed creditworthiness. These developments would adversely affect the market
value of the issuer&#146;s obligations or the value of credit derivatives if the
Fund has sold credit protection.</FONT></P>

<P><FONT SIZE=2><B>Hedging strategy risk</B></FONT></P>

<P><FONT SIZE=2>Certain of the investment
techniques that the Fund may employ for hedging or, under certain
circumstances, to increase income or total return will expose the Fund to
risks. In addition to the hedging techniques described elsewhere (i.e.,
positions in Treasury Bond or Treasury Note futures contracts, use of options
on these positions, positions in interest rate swaps, options thereon
(&#147;swaptions&#148;) and credit derivatives), such investment techniques may include
entering into interest rate and stock index futures contracts and options on
interest rate and stock index futures contracts, purchasing and selling put and
call options on securities and stock indices, purchasing and selling securities
on a when-issued or delayed delivery basis and lending portfolio securities.
The Fund intends to comply with regulations of the SEC involving &#147;covering&#148; or
segregating assets in connection with the Fund&#146;s use of options and futures
contracts.</FONT></P>

<P><FONT SIZE=2>There are economic costs of
hedging reflected in the pricing of futures, swaps, options and swaption
contracts which can be significant, particularly when long-term interest rates
are substantially above short-term interest rates. The desirability of
moderating these hedging costs will be a factor in the Adviser&#146;s choice of
hedging strategies, although costs will not be the exclusive consideration in selecting
hedge instruments. In addition, the Fund may select individual investments
based upon their potential for appreciation without regard to the effect on
current income in an attempt to mitigate the impact on the Fund&#146;s assets of the
expected normal cost of hedging.</FONT></P>

<P><FONT SIZE=2>There may be an imperfect
correlation between changes in the value of the Fund&#146;s portfolio holdings and
hedging positions entered into by the Fund, which may prevent the Fund from
achieving the intended hedge or expose the Fund to risk of loss. In addition,
the Fund&#146;s success in using hedge instruments is subject to the Adviser&#146;s
ability to predict correctly changes in the relationships of such hedge
instruments to the Fund&#146;s portfolio holdings, and there can be no assurance
that the Adviser&#146;s judgment in this respect will be accurate. Consequently, the
use of hedging transactions might result in a poorer overall performance for
the Fund, whether or not adjusted for risk, than if the Fund had not hedged its
portfolio holdings.</FONT></P>

<P><FONT SIZE=2><B>Derivatives risk</B></FONT></P>

<P><FONT SIZE=2>To the extent the Fund
enters into derivative transactions (such as futures contracts and options
thereon, options and swaps), the Fund will be subject to increased risk of
principal loss due to imper-</FONT></P>

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<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>27</B></FONT></P>
</TD>
</TR>
</TABLE>
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</TD>
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<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
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</TD>
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<P><FONT SIZE=2>fect correlation or unexpected
price or interest rate movements. The Fund also will be subject to credit risk
with respect to the counterparties to the derivatives contracts purchased by
the Fund. If a counterparty becomes bankrupt or otherwise fails to perform its
obligations under a derivative contract due to financial difficulties, the Fund
may experience significant delays in obtaining any recovery under the
derivative contract in a bankruptcy or other reorganization proceeding. The
Fund may obtain only a limited recovery or may obtain no recovery in such
circumstances. As a general matter, dividends received on hedged stock
positions are characterized as ordinary income and are not eligible for
favorable tax treatment. In addition, use of derivatives may give rise to
short-term capital gains and other income that would not qualify for payments
by the Fund of qualified dividends.</FONT></P>

<P><FONT SIZE=2><B>Dividend capture risk</B></FONT></P>

<P><FONT SIZE=2>The Fund may seek to
increase its dividend income using a strategy called &#147;dividend capture.&#148; In a
dividend capture trade, the Fund purchases stock of a particular issuer on or
prior to the ex-dividend date for that stock. Because the Fund is the holder of
the stock on the ex-dividend date, it is entitled to receive the dividend on
the stock. After the ex-dividend date, the Fund seeks an opportunity to sell
the stock and reinvest the proceeds in the stock of a different issuer on or
prior to that stock&#146;s ex-dividend date. The use of dividend capture strategies
exposes the Fund to increased trading costs and the potential for capital loss.
Since 2004, the Fund has not made significant use of dividend captures but may
decide to do so in the future.</FONT></P>

<P><FONT SIZE=2><B>Portfolio turnover risk</B></FONT></P>

<P><FONT SIZE=2>The techniques and
strategies contemplated by the Fund might result in a high degree of portfolio
turnover. The Fund cannot accurately predict its securities portfolio turnover
rate, but anticipates that its annual portfolio turnover rate will not exceed
100% (excluding turnover of securities having a maturity of one year or less)
under normal market conditions, although it could be materially higher under
certain conditions. A high turnover rate (100% or more) necessarily involves
greater expenses to the Fund and may result in realization of net short-term
capital gains.</FONT></P>

<P><FONT SIZE=2><B>Inflation risk</B></FONT></P>

<P><FONT SIZE=2>Inflation risk is the risk
that the purchasing power of assets or income from investments will be worth
less in the future as inflation decreases the value of money. As inflation
increases, the real value of the Fund&#146;s preferred stock and common stock, and
distributions thereon, can decline. In addition, during any periods of rising
inflation, the interest rate payable on any debt owed by the Fund would likely
increase, which would tend to further reduce returns to the Fund&#146;s common
shareholders.</FONT></P>

<P><FONT SIZE=2><B>Tax risk</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s investment
program and the tax treatment of Fund distributions may be affected by IRS
interpretations of the Code and future changes in tax laws and regulations,
including changes as a result of the &#147;sunset&#148; provisions that currently apply
to the favorable tax treatment of qualified dividends. There can be no
assurance that any portion of the Fund&#146;s income distributions will not be fully
taxable as ordinary income. In order for the Fund to avoid corporate-level
income tax, the Fund must qualify each year as a regulated investment company
under the Code and distribute all of its net income.</FONT></P>

<P><FONT SIZE=2><B>Market disruption risk</B></FONT></P>

<P><FONT SIZE=2>The war with Iraq and the
continuing occupation of that country by coalition forces have had a
substantial impact on the U.S. and world economies and securities markets. The
duration and nature of the war and occupation and the potential costs of
rebuilding the Iraqi infrastructure and political systems cannot be predicted
with any certainty. The war and occupation, terrorism and related geopolitical
risks have led, and may in the future lead, to increased short-term market
volatility and may have adverse long-term effects on U.S. and world economies
and markets generally. Those events</FONT></P>

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</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>28</B></FONT></P>
</TD>
</TR>
</TABLE>
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</TD>
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<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Risks</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
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<P><FONT SIZE=2>could also have an acute
effect on individual issuers or related groups of issuers. These risks could
also adversely affect securities markets, interest rates, auctions, secondary
trading, ratings, credit risk, inflation, deflation and other factors relating
to the APS.</FONT></P>

<P><FONT SIZE=2><B>Anti-takeover provisions</B></FONT></P>

<P><FONT SIZE=2>Certain provisions of the
Fund&#146;s charter and bylaws may be regarded as &#147;anti-takeover&#148; provisions because
they could have the effect of limiting the ability of other entities or persons
to acquire control of the Fund. See &#147;Certain provisions in the charter and
bylaws and certain provisions of Maryland law.&#148;</FONT></P>

<P><A NAME=A009></A><FONT SIZE=5>Management of the Fund</FONT></P>

<P><FONT SIZE=2><B>BOARD OF DIRECTORS AND OFFICERS</B></FONT></P>

<P><FONT SIZE=2>The business and affairs of
the Fund are managed under the direction of the Fund&#146;s board of directors. For
information concerning the Fund&#146;s officers and directors, see &#147;Management of
the Fund&#148; in the Statement of Additional Information.</FONT></P>

<P><FONT SIZE=2><B>INVESTMENT ADVISER</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s investment
adviser is Duff &amp; Phelps Investment Management Co., 55 East Monroe Street,
Suite 3600, Chicago, Illinois 60603. The Adviser (together with its
predecessor) has been in the investment advisory business for more than 70
years and, excluding the Fund, currently has more than $3.3 billion in client
accounts under discretionary management. The Adviser acts as adviser to two
other closed-end investment companies registered under the Investment Company
Act and as adviser to three open-end investment companies registered under the
Investment Company Act. The Adviser is a wholly owned subsidiary of Phoenix
Investment Partners, Ltd. (&#147;Phoenix Investment Partners&#148;), which is an
indirect, wholly-owned subsidiary of The Phoenix Companies, Inc. (&#147;PNX&#148;).
Phoenix Investment Partners and its subsidiaries provide investment management
services to institutional and private clients and to the life insurance
subsidiaries of PNX.</FONT></P>

<P><FONT SIZE=2>The Adviser is responsible
for the management of the Fund&#146;s investment portfolio, subject to the overall
control of the board of directors of the Fund.</FONT></P>

<P><FONT SIZE=2>Under the terms of an
investment advisory agreement between the Fund and the Adviser (the &#147;Advisory
Agreement&#148;), the Adviser receives from the Fund a quarterly fee at an annual
rate of 0.60% of the average weekly net assets of the Fund up to $1.5 billion
and 0.50% of average weekly net assets in excess of $1.5 billion. The net
assets for each weekly period are determined by averaging the net assets at the
end of a week with the net assets at the end of the prior week. For purposes of
the foregoing calculation, &#147;net assets&#148; are defined as the sum of (i) the
aggregate net asset value of the Fund&#146;s common stock, (ii) the aggregate
liquidation preference of the Fund&#146;s preferred stock and (iii) the aggregate
proceeds to the Fund of commercial paper issued by the Fund. The investment
advisory fees paid by the Fund under the Advisory Agreement totaled $14,771,365
in 2005, $13,869,531 in 2004 and $13,069,523 in 2003. A discussion regarding
the basis for the directors&#146; approving the Advisory Agreement is available in
the Fund&#146;s Semi-Annual Report to Shareholders for the six months ended June 30,
2005 as filed with the SEC on Form N-CSR on September 2, 2005 (No. 811-4915).</FONT></P>


<P><FONT SIZE=2>
Under the terms of a service agreement among the Adviser, Phoenix Investment
Partners and the Fund (the &#147;Service Agreement&#148;), Phoenix Investment Partners
makes available to the Adviser the services, on a part-time basis, of its
employees and various facilities to enable the Adviser to perform certain of
its obligations to the Fund. However, the obligation of performance under the
Advisory Agreement is solely that of the Adviser, for which Phoenix Investment
Partners assumes no responsi-</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>29</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Management
  of the Fund</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>bility, except as described
in the preceding sentence. The Adviser reimburses Phoenix Investment Partners
for any costs, direct or indirect, fairly attributable to the services performed
and the facilities provided by Phoenix Investment Partners under the Service
Agreement. The Fund does not pay any fees pursuant to the Service Agreement.</FONT></P>

<P><FONT SIZE=2><B>PORTFOLIO MANAGEMENT</B></FONT></P>

<P><FONT SIZE=2>A team of investment
professionals employed by the Adviser is responsible for the day-to-day
management of the Fund&#146;s portfolio. The members of that investment team and
their respective areas of responsibility and expertise, as of April 1, 2006,
are as follows:</FONT></P>

<P><FONT SIZE=2>
 Nathan I. Partain, CFA, has led the Fund&#146;s portfolio management
team since 1998 and has served on the Fund&#146;s portfolio management team since
1996. He has been President, Chief Executive Officer and Chief Investment
Officer of the Fund since February 2001 (Executive Vice President and Chief
Investment Officer from 1998 to 2001). Mr. Partain has been President and Chief
Investment Officer of the Adviser since April 2005 (Executive Vice President
from 1997 to 2005), President and Chief Executive Officer of DTF Tax-Free
Income Inc. (&#147;DTF&#148;) and Duff &amp; Phelps Utility and Corporate Bond Trust Inc.
(&#147;DUC&#148;), two other closed-end utilities oriented funds, since February 2004,
and lead portfolio manager of Phoenix Global Utilities Fund (&#147;PGU&#148;), an
open-end utilities oriented fund, since October 2004. He joined the Duff &amp;
Phelps organization in 1987 and has served since then in positions of
increasing responsibility. He is also a director of Otter Tail Corporation
(since 1993).</FONT></P>


<P><FONT SIZE=2>
 T. Brooks Beittel, CFA, has served on the Fund&#146;s portfolio
management team and has been Secretary and a Senior Vice President of the Fund
since January 1995 (Treasurer from January 1995 to September 2002). He has been
Senior Vice President of the Adviser since 1993 (Vice President 1987-1993) and
Secretary of DTF and DUC since May 2005. He is also a member of the portfolio
management teams of DUC and PGU. Mr. Beittel concentrates his research on
fixed-income securities. He joined the Duff &amp; Phelps organization in 1987
and has served since then in positions of increasing responsibility.</FONT></P>

<P><FONT SIZE=2>
 Michael
Schatt has served on the Fund&#146;s portfolio management team since 1996 and has
been a Senior Vice President of the Fund since April 1998 (Vice President from
January 1997 to April 1998). Mr. Schatt has been a Senior Vice President of the
Adviser since January 1997 and was a Managing Director of Phoenix Investment
Partners from 1994 to 1996. Mr. Schatt concentrates his research on REIT
securities and is the senior portfolio manager for all REIT products managed by
the Adviser. These products include the Phoenix Real Estate Securities Fund,
the Phoenix Real Estate Securities Series sub-account of the Phoenix Edge
Series annuity products, Duff &amp; Phelps Real Estate Securities Trust and
various separate accounts. Before joining the Duff &amp; Phelps organization in
1994, Mr. Schatt spent four years as a director of the Real Estate Advisory
Practice for Coopers &amp; Lybrand, LLC, advising foreign pension funds on the
acquisition and disposition of U.S. real estate assets and assisting clients in
evaluating public real estate investments as an alternative to private real
estate investments. Prior to joining Coopers &amp; Lybrand, he had 10 years&#146;
experience in real estate finance. </FONT></P>


<P><FONT SIZE=2>
Deborah A. Jansen, CFA, has served on the
Fund&#146;s portfolio management team and has been a Senior Vice President of the Adviser
since January 2001. She is also a member of the portfolio management team of
PGU. Ms. Jansen concentrates her research on the global electric and natural
gas industries. Prior to joining the Adviser in 2001, Ms. Jansen was a Senior
Vice President, Principal and Equity Portfolio Manager at Stein Roe and
Farnham, Inc. from 1996 to 2000.</FONT></P>

<P><FONT SIZE=2>Connie M. Luecke, CFA, has
served on the Fund&#146;s portfolio management team since 1996 and has been a Senior
Vice President of the Adviser since January 1998 (Managing Director from 1996
to 1998). She is also a member of the portfolio management team of PGU. Ms.
Luecke concentrates her research on the global telecommunications industries.
She joined the Duff &amp; Phelps organization in 1992 and has served since then
in positions of increasing responsibility.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>30</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Management
  of the Fund</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Daniel J. Petrisko, CFA, has
served on the Fund&#146;s portfolio management team since 2004 and has been a Senior
Vice President of the Adviser since 1997 (Vice President from 1995 to 1997). He
has been Chief Investment Officer of DUC, another closed-end utilities oriented
fund, since February 2004 (Portfolio Manager from 2002 to 2004, Vice President
since 2000). He joined the Duff &amp; Phelps organization in 1995 and has
served since then in positions of increasing responsibility.</FONT></P>

<P><FONT SIZE=2>
 Randle L. Smith,
CFA, has served on the Fund&#146;s portfolio management team since 1996 and has been
a Senior Vice President of the Adviser since January 1998 (Managing Director
from 1996 to 1998). He is also a member of the portfolio management team of
PGU. Mr. Smith concentrates his research on the global electric and natural gas
industries. He joined the Duff &amp; Phelps organization in 1990 and has served
since then in positions of increasing responsibility.</FONT></P>

<P><FONT SIZE=2>Please refer to the
Statement of Additional Information for additional information about the Fund&#146;s
portfolio managers, including the structure of and method of computing
compensation, other accounts they manage and their ownership of securities of
the Fund.</FONT></P>

<P><FONT SIZE=2><B>ADMINISTRATOR</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s administrator is
J.J.B. Hilliard, W.L. Lyons, Inc., Hilliard Lyons Center, Louisville, Kentucky
40202. The Administrator is a wholly-owned subsidiary of The PNC Financial
Services Group, Inc. Under the terms of an administration agreement (the &#147;Administration
Agreement&#148;), the Administrator provides all management and administrative
services required in connection with the operation of the Fund not required to
be provided by the Adviser pursuant to the Advisory Agreement, as well as the
necessary office facilities, equipment and personnel to perform such services.
For its services, the Administrator receives from the Fund a quarterly fee at
an annual rate of 0.25% of the Fund&#146;s average weekly net assets up to $100
million, 0.20% of the Fund&#146;s average weekly net assets from $100 million to
$1.0 billion and 0.10% of average weekly net assets over $1.0 billion. The net
assets for each weekly period are determined by averaging the net assets at the
end of a week with the net assets at the end of the prior week. For purposes of
the foregoing calculation, &#147;net assets&#148; are defined as the sum of (i) the
aggregate net asset value of the Fund&#146;s common stock, (ii) the aggregate
liquidation preference of the Fund&#146;s preferred stock and (iii) the aggregate
proceeds to the Fund of commercial paper issued by the Fund.</FONT></P>

<P><FONT SIZE=2><B>EXPENSES</B></FONT></P>

<P><FONT SIZE=2>The Fund is responsible for
all expenses not paid by the Adviser or the Administrator, including brokerage
fees.</FONT></P>

<P><FONT SIZE=2><B>CONTROL PERSONS</B></FONT></P>

<P><FONT SIZE=2>The Fund does not consider
that any person &#147;controls&#148; the Fund. No person is known by the Fund to own of
record or beneficially five percent or more of any class of the Fund&#146;s
outstanding equity securities. For purposes of the preceding, &#147;control&#148; means
(1) the beneficial ownership, either directly or through one or more controlled
companies, of more than 25 percent of the voting securities of a company; (2)
the acknowledgement or assertion by either the controlled or controlling party
of the existence of control; or (3) a final adjudication under Section 2(a)(9)
of the Investment Company Act that control exists.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>31</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=5>Description
  of APS<A NAME=A010></A></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The following is a brief
description of the terms of the APS. For the complete terms of the APS,
including the meanings of the defined terms used in this Prospectus but not otherwise
defined, please refer to the detailed description of the APS in the Articles
Supplementary attached as Appendix A to the Statement of Additional
Information.</FONT></P>

<P><FONT SIZE=2><B>GENERAL</B></FONT></P>

<P><FONT SIZE=2>The APS will rank on a
parity with the shares of any other series of preferred stock of the Fund as to
the payment of dividends and the distribution of assets upon liquidation. All
shares of APS carry  &frac14;  vote per share on matters on which APS can be voted. The shares of APS,
when issued, will be fully paid and non-assessable and will have no preemptive,
conversion or cumulative voting rights. The shares of APS will not be
convertible into common stock, RPS or other capital stock of the Fund.</FONT></P>


<P><FONT SIZE=2>
 A
preferred stock credit rating is a rating agency&#146;s assessment of the capacity
and willingness of an issuer to pay preferred stock obligations. The ratings on
the APS are not recommendations to purchase, hold or sell APS, inasmuch as the
ratings do not comment as to market price or suitability for a particular
investor. The rating agency guidelines described below also do not address the
likelihood that an owner of APS will be able to sell shares of APS in an
auction or otherwise.</FONT></P>

<P><FONT SIZE=2>The APS offered by this
Prospectus will rank on a parity with the Existing APS and the RPS.</FONT></P>

<P><FONT SIZE=2><B>DIVIDENDS AND DIVIDEND PERIODS</B></FONT></P>

<P><FONT SIZE=2>The following is a general
description of dividends and dividend periods. The initial dividend period for
each series of APS is as set forth below:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="69%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="24%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Series</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Initial
  dividend period</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Series T</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
  2006&#150;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Series R</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
  2006&#150;[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;], 2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Any subsequent dividend
periods will generally be seven days. The Fund, subject to certain conditions,
may change the length of subsequent dividend periods by designating them as
special dividend periods. See &#147;Declaration of special dividend periods&#148; below.</FONT></P>

<P><FONT SIZE=2><B>Dividend payment dates</B></FONT></P>

<P><FONT SIZE=2>Dividends on the APS will be
payable when, as and if declared by the board of directors, out of legally
available funds in accordance with the charter, the Articles Supplementary and
applicable law. Dividends are scheduled to be paid for each series of APS as
follows:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="34%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="20%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Series</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Initial
  dividend payment date</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Subsequent dividend<BR>
  </B><FONT SIZE=1><B>payment
  day</B></FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Series T</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
  2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>Wednesday</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>Series R</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>[&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;],
  2006</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>Friday</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>If dividends are payable on
a day that is not a business day, then dividends will be payable on the next
business day. In addition, the Fund may specify different dividend payment
dates for any special dividend period of more than 28 dividend period days.</FONT></P>

<P><FONT SIZE=2>Dividends will be paid
through The Depository Trust Company (the &#147;Securities Depository&#148;) on each
dividend payment date. The Securities Depository, in accordance with its
current procedures, is</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>32</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of APS</B></FONT></P></TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>expected to distribute dividends
received from the Fund in next-day funds on each dividend payment date to its
members or participants (&#147;Agent Members&#148;) who are acting as agents for
beneficial owners. These Agent Members are in turn expected to distribute such
dividends to the persons for whom they are acting as agents. However, each of
the current Broker-Dealers has indicated to the Fund that dividend payments
will be available in same-day funds on each dividend payment date to customers
that use such Broker-Dealer or that Broker-Dealer&#146;s designee as Agent Member.</FONT></P>

<P><FONT SIZE=2><B>Calculation of dividend payment</B></FONT></P>

<P><FONT SIZE=2>The Fund computes the
dividends per share payable on shares of each series of APS by multiplying the
applicable dividend rate in effect for shares of such series in effect by a
fraction. The numerator of this fraction will normally be seven (i.e., the
number of days in the dividend period) and the denominator will normally be
360. In either case, this rate is then multiplied by $25,000 to arrive at
dividends per share.</FONT></P>

<P><FONT SIZE=2>Dividends on shares of each
series of APS will accumulate from the date of their original issue. For each
dividend payment period after the initial dividend period, the dividend rate
will be the dividend rate determined at auction once each of the requirements
of the Articles Supplementary are satisfied. </FONT></P>

<P><FONT SIZE=2>
Prior to each auction,
Broker-Dealers will notify holders of the term of the next succeeding dividend
period as soon as practicable after the Broker-Dealers have been so advised by
the Fund. After each auction, on the auction date, Broker-Dealers will notify
holders of the applicable dividend rate for the next succeeding dividend period
and of the auction date of the next succeeding auction.</FONT></P>

<P><FONT SIZE=2>The dividend rate that
results from an auction for each series of APS will not be greater than the
maximum dividend rate. The maximum dividend rate for any regular dividend
period will be the higher of (i) the applicable percentage of the reference
rate and (ii) the applicable spread plus the reference rate. The reference rate
will be the applicable LIBOR Rate (as defined below) (for a dividend period of
fewer than 365 days) or the applicable U.S. Treasury Note Rate (as defined
below) (for a dividend period of 365 days or more). The applicable percentage
of the reference rate and the applicable spread plus the reference rate for any
regular dividend period will generally be determined based on the credit
ratings assigned to the APS by Moody&#146;s and S&amp;P on the auction date for such
period (as set forth in the table below). If Moody&#146;s and S&amp;P do not make
such rating available, the rate will be determined by reference to equivalent
ratings issued by a substitute rating agency. In the case of a special dividend
period, (1) the maximum dividend rate will be specified by the Fund in the
notice of special dividend period for such dividend period, (2) the applicable
percentage of the reference rate and the applicable spread plus the reference
rate will be determined on the date two business days before the first day of
such special dividend period and (3) the reference rate will be the applicable
LIBOR Rate (for a dividend period of fewer than 365 days) or the U.S. Treasury
Note Rate (for a dividend period of 365 days or more).</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="23%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="29%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="26%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="15%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Moody&#146;s</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>S&amp;P</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Applicable
  percentage<BR>
  of the reference rate</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=Right><FONT SIZE=1><B>Applicable
  spread</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>Aaa</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>AAA</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>125%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=Right><FONT SIZE=2>125
  bps</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Aa3
  to Aa1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>AA-
  to AA+</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>150%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=Right><FONT SIZE=2>150
  bps</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>A3
  to A1</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>A-
  to A+</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>200%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=Right><FONT SIZE=2>200
  bps</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Baa3
  to Baa1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>BBB-
  to BBB+</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>250%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=Right><FONT SIZE=2>250
  bps</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>Ba1
  and lower</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>BB+
  and lower</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>300%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=Right><FONT SIZE=2>300
  bps</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>33</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description
  of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Assuming the Fund maintains
an AAA/Aaa rating on the APS, the practical effect of the different methods
used to calculate the maximum dividend rate is shown in the table below:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="17%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="18%" VALIGN=TOP>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="17%" VALIGN=TOP>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Reference
  rate</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Maximum
  dividend<BR>
  rate using the<BR>
  applicable percentage<BR>
  of the reference rate</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Maximum
  dividend rate<BR>
  using the applicable spread<BR>
  plus the reference rate</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1><B>Method
  used to<BR>
  determine the<BR>
  maximum dividend rate</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>1%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1.25%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>2.25%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>Spread</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>2%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>2.50%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>3.25%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>Spread</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>3%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>3.75%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>4.25%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>Spread</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>4%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>5.00%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>5.25%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>Spread</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>5%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>6.25%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>6.25%</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>Either</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>6%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>7.50%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>7.25%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>Percentage</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Prior to each dividend
payment date, the Fund is required to deposit with the auction agent sufficient
funds for the payment of declared dividends. The failure to make such deposit
will not result in the cancellation of any auction. The Fund does not intend to
establish any reserves for the payment of dividends.</FONT></P>

<P><FONT SIZE=2>The Fund will take all
reasonable action necessary to enable Moody&#146;s and S&amp;P to provide ratings
for each series of APS. If such ratings are not made available by Moody&#146;s or
S&amp;P, the underwriter or its affiliates and successors, after consultation
with the Fund, will select one or more other rating agencies to act as
substitute rating agencies.</FONT></P>

<P><FONT SIZE=2>The &#147;LIBOR Rate&#148; is the
applicable London Inter-Bank Offered Rate for deposits in U.S. dollars for the
period most closely approximating the applicable dividend period for a series
of APS. For a more detailed description, please see the Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>The &#147;U.S. Treasury Note
Rate&#148; is the average yield to maturity for certain U.S. Treasury securities
having substantially the same length to maturity as the applicable dividend
period for a series of APS. For a more detailed description, please see the
Articles Supplementary.</FONT></P>

<P><FONT SIZE=2><B>Effect of failure to pay dividends in a timely manner</B></FONT></P>

<P><FONT SIZE=2>If the Fund fails to pay the
auction agent the full amount of any dividend for any shares of APS in a timely
manner, but the Fund cures such failure and pays any late charge before 12:00
noon, New York City time, on the third business day following the date the
failure occurred, no auction will be held for the APS for the first subsequent
dividend period thereafter, and the dividend rate for the APS for that
subsequent dividend period will be the maximum dividend rate. However, if the
Fund does not effect a timely cure, no auction will be held for the APS for the
first subsequent dividend period thereafter (and for any dividend period
thereafter, up to and including the dividend period during which the failure is
cured and the late charge is paid), and the dividend rate for the APS for each
subsequent dividend period will be the maximum dividend rate with the
prevailing rating for the series of APS being deemed Baa1/BBB.</FONT></P>

<P><FONT SIZE=2><B>Restrictions on dividends and other distributions</B></FONT></P>

<P><FONT SIZE=2>Under the Investment Company
Act, the Fund may not (i) declare any dividend with respect to the APS if, at
the time of such declaration (and after giving effect thereto), asset coverage
with respect to any Borrowings of the Fund that are senior securities
representing indebtedness (as defined in the Investment Company Act) would be
less than 200% (or such other percentage as may in the future be specified in
or under the Investment Company Act as the minimum asset coverage for senior
securities representing indebtedness of a closed-end investment company as a
condition of declaring dividends on its preferred stock) or (ii) declare any
other distribution on the APS or purchase or redeem shares</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>34</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description
  of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>of APS if, at the time of
the declaration (and after giving effect thereto), asset coverage with respect
to the Fund&#146;s senior securities representing indebtedness would be less than
300% (or such other percentage as may in the future be specified in or under
the Investment Company Act as the minimum asset coverage for senior securities
representing indebtedness of a closed-end investment company as a condition of
declaring distributions on or effecting purchases or redemptions of any class
of its capital stock). &#147;Senior securities representing indebtedness&#148; generally
means any bond, debenture, note or similar obligation or instrument
constituting a security (other than shares of beneficial interest) and
evidencing indebtedness and could include the Fund&#146;s obligations under any
Borrowings. For purposes of determining asset coverage for senior securities
representing indebtedness in connection with the payment of dividends or other
distributions on or purchases or redemptions of stock, the term &#147;senior
security&#148; does not include any promissory note or other evidence of
indebtedness issued in consideration of any loan, extension or renewal thereof,
made by a bank or other person and privately arranged, and not intended to be
publicly distributed. The term &#147;senior security&#148; also does not include any such
promissory note or other evidence of indebtedness in any case where such a loan
is for temporary purposes only and in an amount not exceeding 5% of the value
of the total assets of the Fund at the time the loan is made; a loan is
presumed under the Investment Company Act to be for temporary purposes if it is
repaid within 60 days and is not extended or renewed; otherwise it is presumed
not to be for temporary purposes. For purposes of determining whether the 200%
and 300% asset coverage requirements described above apply in connection with
dividends or distributions on or purchases or redemptions of shares of APS,
such asset coverages may be calculated on the basis of values calculated as of
a time within 48 hours (not including Sundays or holidays) next preceding the
time of the applicable determination.</FONT></P>

<P><FONT SIZE=2>In addition, a declaration
of a dividend or other distribution on or purchase or redemption of shares of
APS may be prohibited (i) at any time when an event of default under any
Borrowings has occurred and is continuing; (ii) after giving effect to such
declaration, the Fund would not have eligible portfolio holdings with an
aggregated discounted value at least equal to any asset coverage requirements
associated with such Borrowings; or (iii) the Fund has not redeemed the full
amount of Borrowings, if any, required to be redeemed by any provision for
mandatory redemption. While any shares of APS are outstanding, the Fund
generally may not declare, pay or set apart for payment any dividend or other
distribution in respect of its common stock. In addition, the Fund may not call
for redemption or redeem any of its common stock. However, the Fund is not
confined by the above restrictions if: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>immediately after such
  transaction, the Discounted Value of the Fund&#146;s portfolio would be equal to
  or greater than the Preferred Stock Basic Maintenance Amount and the
  Investment Company Act Preferred Stock Asset Coverage (see &#147;&#151;Rating agency
  guidelines and asset coverage&#148; below);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>full cumulative dividends
  on each series of APS due on or prior to the date of the transaction have
  been declared and paid or shall have been declared and sufficient funds for
  the payment thereof deposited with the auction agent; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the Fund has redeemed the
  full number of shares of APS required to be redeemed by any provision for
  mandatory redemption contained in the Articles Supplementary.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The Fund generally will not
declare, pay or set apart for payment any dividend on any class or series of
shares of capital stock of the Fund ranking, as to the payment of dividends, on
a parity with the APS unless the Fund has declared and paid or
contemporaneously declares and pays full cumulative dividends on each series of
APS through its most recent dividend payment date. However, when the Fund has
not paid dividends in full upon the shares of each series of APS through the
most recent dividend payment date or upon any other class or series of shares
of the Fund ranking, as to the payment of dividends, on a parity with the APS
through their most recent respective dividend payment dates, the amount of
dividends declared per share on the APS and such other class or series of
shares</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>35</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description
  of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>will in all cases bear to
each other the same ratio that accumulated dividends per share on the APS and
such other class or series of shares bear to each other.</FONT></P>

<P><FONT SIZE=2><B>Declaration of special dividend periods</B></FONT></P>

<P><FONT SIZE=2>The Fund may, under certain
circumstances, declare a special dividend period for a particular series of
APS. Upon declaring a special dividend period, the Fund will give notice to the
auction agent and each Broker-Dealer. The notice will request that the next
succeeding dividend period for the series of APS be a number of days (greater
than 7) evenly divisible by seven as specified in such notice and not more than
1,820 days long; provided, however, that a special dividend period may be a
number of days not evenly divisible by seven if all shares of the series of APS
are to be redeemed at the end of such special dividend period. The Fund may not
request a special dividend period unless sufficient clearing bids for shares of
such series were made in the most recent auction (that is, in general, the
number of shares subject to buy orders by potential holders is at least equal
to the number of shares subject to sell orders by existing holders). In
addition, full cumulative dividends, any amounts due with respect to mandatory
redemptions and any additional dividends payable prior to such date must be
paid in full or deposited with the auction agent. Prior to declaring a special
dividend period, the Fund will confirm that, as of the auction date next
preceding the first day of such special dividend period, it has eligible assets
with an aggregate discounted value at least equal to the Preferred Stock Basic
Maintenance Amount (as defined below). The Fund also intends to consult with
the Broker-Dealers and provide notice to each rating agency which is then
rating the APS and so requires. A notice of special dividend period also will
specify whether the APS will be subject to optional redemption during such
special dividend period and, if so, the redemption premium, if any, required to
be paid by the Fund in connection with such optional redemption. If the Fund
proposes to designate any special dividend period, not fewer than 20 (or such
lesser number of days as may be agreed from time to time by the auction agent
and each Broker-Dealer) nor more than 30 business days prior to the first day
of such special dividend period, notice shall be mailed to Holders of such
series of APS. Each such notice shall state (A) that the Fund proposes to
exercise its option to designate a succeeding special dividend period,
specifying the special dividend period&#146;s first day, and (B) that the Fund will
by 11:00 A.M., New York City time, on the second business day next preceding
the first day of such special dividend period, notify the auction agent, who
will promptly notify the Broker-Dealers, of either (x) its determination,
subject to certain conditions, to proceed with such special dividend period,
subject to the terms of any specific redemption provisions, or (y) its
determination not to proceed with such special dividend period, in which latter
event the succeeding dividend period shall be a minimum dividend period. No
later than 11:00 A.M., New York City time, on the second business day next
preceding the first day of any proposed special dividend period, the Fund shall
deliver to the auction agent, who will promptly deliver to the Broker-Dealers,
either: (i) a notice stating (A) that the Fund has determined to designate the
next succeeding dividend period as a special dividend period, specifying the
first and last days thereof, and (B) the terms of any specific redemption
provisions; or (ii) a notice stating that the Fund has determined not to
exercise its option to designate a special dividend period. If the Fund fails
to deliver either such notice with respect to any designation of any proposed
special dividend period to the auction agent by 11:00 A.M., New York City time,
on the second business day next preceding the first day of such proposed
special dividend period, the Fund shall be deemed to have delivered a notice to
the auction agent with respect to such dividend period to the effect set forth
in clause (ii) above, thereby resulting in a minimum dividend period. The Fund
must also have received confirmation from Moody&#146;s and S&amp;P or any substitute
rating agency that the proposed special dividend period will not adversely
affect such rating agency&#146;s then-current rating on the APS, and the lead
Broker-Dealer designated by the Fund, initially
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
must not have objected to the declaration of a special dividend period.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>36</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>REDEMPTION</B></FONT></P>

<P><FONT SIZE="2"><B>Mandatory redemption. </B>The
Fund is required to maintain (a) a Discounted Value of eligible portfolio
securities equal to the Preferred Stock Basic Maintenance Amount and (b) the
Investment Company Act Preferred Stock Asset Coverage. Eligible portfolio
securities for purposes of (a) above will be determined from time to time by
the rating agencies then rating the APS. If the Fund fails to maintain such
asset coverage amounts and does not timely cure such failure in accordance with
the requirements of the rating agency that rates the APS, the Fund must redeem
all or a portion of the APS. This mandatory redemption will take place on a
date that the board of directors specifies out of legally available funds in
accordance with the charter, the Articles Supplementary and applicable law, at
the redemption price of $25,000 per share plus accumulated but unpaid dividends
(whether or not earned or declared) to the date fixed for redemption. The
number of shares of APS that must be redeemed in order to cure such failure
will be allocated pro rata among the outstanding shares of preferred stock of
the Fund. The mandatory redemption will be limited to the number of shares of
APS necessary to restore the required Discounted Value or the Investment
Company Act Preferred Stock Asset Coverage, as the case may be. </FONT></P>

<P><FONT SIZE="2"><B>Optional redemption. </B>The
Fund, at its option, may redeem the APS, in whole or in part, out of funds
legally available therefor. Any optional redemption will occur on any dividend
payment date at the optional redemption price per share of $25,000 per share
plus an amount equal to accumulated but unpaid dividends to the date fixed for
redemption plus the premium, if any, specified in a special redemption
provision. No shares of APS may be redeemed if the redemption would cause the
Fund to violate the Investment Company Act or any other applicable law. Shares
of a series of APS may not be redeemed in part if fewer than 300 shares of APS
would remain outstanding after the redemption. The Fund has the authority to
redeem shares of APS for any reason. </FONT></P>

<P><FONT SIZE=2>The redemption price for a
series of APS may include the payment of redemption premiums to the extent
required under any applicable specific redemption provisions. The Fund will not
make any optional redemption unless, after giving effect thereto, (i) the Fund
has available certain deposit securities with maturities or tender dates not
later than the day preceding the applicable redemption date and having a value
not less than the amount (including any applicable premium) due to holders of
the series of APS by reason of the redemption of the series of APS on such date
fixed for the redemption and (ii) the Fund has eligible assets with an
aggregate discounted value at least equal to the Preferred Stock Basic
Maintenance Amount. Notwithstanding the foregoing, a series of APS may not be
redeemed at the option of the Fund unless all dividends in arrears on all
outstanding series of APS, and any other outstanding preferred stock of the
Fund, have been or are being contemporaneously paid or set aside for payment.
This would not prevent the lawful purchase or exchange offer for a series of
APS made on the same terms to holders of all outstanding preferred stock of the
Fund.</FONT></P>

<P><FONT SIZE=2><B>LIQUIDATION</B></FONT></P>

<P><FONT SIZE=2>In the event of any voluntary
or involuntary liquidation, dissolution or winding up of the Fund, the holders
of preferred stock, including both APS and RPS, will be entitled to receive a
preferential liquidating distribution, which is expected to equal the original
purchase price per share of preferred stock plus accrued and unpaid dividends,
whether or not declared, before any distribution of assets is made to holders
of common stock. After payment of the full amount of the liquidating
distribution to which they are entitled, the holders of preferred stock will
not be entitled to any further participation in any distribution of assets by
the Fund.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>37</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>For purpose of the foregoing
paragraph, a voluntary or involuntary liquidation of the Fund does not include:
</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the sale of all or
  substantially all the property or business of the Fund; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the merger or
  consolidation of the Fund into or with any other business trust or
  corporation; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>the merger or
  consolidation of any other business trust or corporation into or with the
  Fund.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>RATING AGENCY GUIDELINES AND ASSET COVERAGE</B></FONT></P>

<P><FONT SIZE=2>The Fund is required under
guidelines of Moody&#146;s and S&amp;P to maintain assets having in the aggregate a
Discounted Value at least equal to the Preferred Stock Basic Maintenance
Amount. Moody&#146;s and S&amp;P have each established separate guidelines for
calculating Discounted Value. To the extent any particular portfolio holding
does not satisfy a rating agency&#146;s guidelines, all or a portion of the
holding&#146;s value will not be included in the rating agency&#146;s calculation of
Discounted Value. The Moody&#146;s and S&amp;P guidelines do not impose any
limitations on the percentage of the Fund&#146;s assets that may be invested in
holdings not eligible for inclusion in the calculation of the Discounted Value
of the Fund&#146;s portfolio. The amount of ineligible assets included in the Fund&#146;s
portfolio at any time may vary depending upon the rating, diversification and
other characteristics of the eligible assets included in the portfolio. The
Preferred Stock Basic Maintenance Amount includes the sum of (a) the aggregate
liquidation preference of the preferred stock then outstanding and (b) certain
accrued and projected payment obligations of the Fund.</FONT></P>

<P><FONT SIZE=2>The Fund is also required
under the Investment Company Act to maintain asset coverage of at least 200%
with respect to senior securities which are stock, including the APS, the
Existing APS and the RPS (&#147;Investment Company Act Preferred Stock Asset
Coverage&#148;). The Fund&#146;s Investment Company Act Preferred Stock Asset Coverage is
tested as of the last business day of each month in which any senior equity
securities are outstanding. Based on the composition of the portfolio of the
Fund and market conditions as of March 31, 2006, the Investment Company Act Preferred
Stock Asset Coverage with respect to all of the Fund&#146;s preferred stock, and
after giving pro forma effect to the retirement on that date of all of the CP
Notes and the issuance on that date of all shares of APS offered hereby and to
the deduction of related sales load and related offering costs estimated at
$2,152,400 in the aggregate, would have been computed as follows:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH=100%>
<TR style="font-size:1px" >
<TD WIDTH=80 VALIGN=TOP>
<P>&nbsp;</P>
</TD>

<TD WIDTH=250 VALIGN=TOP>
<P>&nbsp;</P>
</TD>

<TD WIDTH=20 VALIGN=TOP>
<P>&nbsp;</P>
</TD>

<TD WIDTH=70 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH=95 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH=31 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH=150 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Value
  of Fund assets less liabilities<BR>
  not constituting senior securities</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>$2,915,532,249</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>=</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>=</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>292%</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>Senior
  securities representing indebtedness<BR>
  plus liquidation value of preferred stock</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;$1,000,000,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</table>
<P><FONT SIZE=2>In the event the Fund does
not timely cure a failure to maintain (a) a Discounted Value of its portfolio
equal to the Preferred Stock Basic Maintenance Amount or (b) the Investment
Company Act Preferred Stock Asset Coverage, in accordance with the requirements
of the rating agency or agencies then rating the APS or the Investment Company
Act, as the case may be, the Fund will be required to redeem shares of APS as
described under &#147;Redemption&#151;Mandatory redemption&#148; above.</FONT></P>

<P><FONT SIZE=2>The Fund may, but is not
required to, adopt any modifications to the guidelines that may be established
by Moody&#146;s or S&amp;P. Failure to adopt any such modifications, however, may
result in a change in the ratings described above or a withdrawal of ratings
altogether. In addition, any rating agency providing a rating for the APS may,
at any time, change, suspend or withdraw any such rating. The board of
directors may, without shareholder approval, amend, alter or repeal any or all
of the definitions and related provisions which have been adopted by the Fund
pursuant to the rating agency guidelines in the event the Fund receives written
confirmation from Moody&#146;s or S&amp;P, as the case may be, that any such amendment,
alteration or repeal would not impair the rating then assigned to the APS.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>38</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>As described by Moody&#146;s and
S&amp;P, a preferred stock rating is an assessment of the capacity and
willingness of an issuer to pay preferred stock obligations. The rating on the
APS is not a recommendation to purchase, hold or sell shares of APS, inasmuch
as the rating does not comment as to market price or suitability for a
particular investor. The rating agency guidelines referred to above also do not
address the likelihood that an owner of shares of APS will be able to sell such
shares in an auction or otherwise. The rating is based on current information
furnished to Moody&#146;s and S&amp;P by the Fund and the Adviser and information
obtained from other sources. The rating may be changed, suspended or withdrawn
as a result of changes in, or the unavailability of, such information.</FONT></P>

<P><FONT SIZE=2>The rating agency&#146;s
guidelines will apply to the APS only so long as the rating agency is rating
the APS. The Fund will pay certain fees to Moody&#146;s and S&amp;P for rating the
APS.</FONT></P>

<P><FONT SIZE=2><B>VOTING RIGHTS</B></FONT></P>

<P><FONT SIZE=2>Except as otherwise provided
in this Prospectus and in the Statement of Additional Information or as
otherwise required by law, holders of APS will be entitled to &frac14; vote per
share of APS and will vote together with holders of common stock and other
preferred stock as a single class. Since each share of APS represents a
liquidation preference of $25,000, whereas each share of RPS (which has one
vote per share) represents a liquidation preference of $100,000, the allocation
of &frac14; vote per share to the APS will give all holders of preferred stock
equal voting power per dollar of liquidation preference. <BR><BR>Holders of outstanding
preferred stock, voting separately as one class, are entitled to elect two of
the Fund&#146;s directors. The remaining directors are elected by holders of the
Fund&#146;s common stock. In addition, if at any time dividends (whether or not
earned or declared) on outstanding preferred stock are due and unpaid in an
amount equal to two full years of dividends, and sufficient cash or specified
securities have not been deposited with the auction agent for the payment of
such dividends, then, the sole remedy of holders of outstanding preferred stock
is that the number of directors constituting the board of directors will be
automatically increased by the smallest number that, when added to the two
directors elected exclusively by the holders of preferred stock as described
above, would constitute a majority of the board of directors. The holders of
preferred stock will be entitled to elect that smallest number of additional
directors at a special meeting of shareholders held as soon as possible and at
all subsequent meetings at which directors are to be elected. The terms of
office of the persons who are directors at the time of that election will
continue. If the Fund thereafter shall pay, or declare and set apart for
payment, in full, all dividends payable on all outstanding preferred stock, the
special voting rights stated above will cease, and the terms of office of the
additional directors elected by the holders of preferred stock will
automatically terminate.</FONT></P>

<P><FONT SIZE=2>As long as any shares of APS
are outstanding, the Fund will not, without the affirmative vote or consent of
the holders of at least two-thirds of the shares of preferred stock outstanding
at the time (voting separately as one class): </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>authorize, create or
  issue, or increase the authorized or issued number of, any class or series of
  shares ranking prior to the APS with respect to the payment of dividends or
  the distribution of assets on liquidation; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>amend, alter or repeal the
  provisions of the charter, including the Articles Supplementary, whether by
  merger, consolidation or otherwise, so as to materially and adversely affect
  any right, preference, privilege or voting power of the APS or the holders of
  APS; provided that any increase in the amount of the authorized preferred
  stock or the creation and issuance of other series of preferred stock, or any
  increase in the amount of authorized shares of such series or of any other
  series of preferred stock, in each case ranking on a parity with or junior to
  the APS, will not be deemed to materially and adversely affect such rights,
  preferences, privileges or voting powers unless such issuance would cause the
  Fund not to satisfy the Investment Company Act Preferred Stock Asset Coverage
  requirements or the Preferred</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0  width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>39</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P style="margin-left:5%"><FONT SIZE=2>Stock Basic Maintenance
Amount requirements, in which case the vote or consent of the holders of the
preferred stock is not required.</FONT></P>

<P><FONT SIZE=2>Unless a higher percentage
is provided for under the charter, the affirmative vote of the holders of a
majority of the outstanding shares of preferred stock, including APS, voting
together as a single class, will be required to approve any plan of
reorganization adversely affecting such shares or any action requiring a vote
of security holders under Section 13(a) of the 1940 Act. The class vote of
holders of shares of preferred stock, including APS, described above will in
each case be in addition to a separate vote of the requisite percentage of
shares of common stock and shares of preferred stock, including APS, necessary
to authorize the action in question.</FONT></P>

<P><FONT SIZE=2>As defined in the 1940 Act,
a reorganization includes:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a reorganization under the
  supervision of a court of competent jurisdiction; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a merger or consolidation;
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a sale of 75% or more in
  value of the assets of the Fund;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a restatement of the
  capital of the Fund, or an exchange of securities issued by the Fund for any
  of its own outstanding securities; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a voluntary dissolution or
  liquidation of the Fund; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(f)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a recapitalization or
  other procedure or transaction which has for its purpose the alteration,
  modification, or elimination of any of the rights, preferences, or privileges
  of any class of securities issued by the Fund, as provided in its charter or
  other instrument creating or defining such rights, preferences, and
  privileges; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(g)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>an exchange of securities
  issued by the Fund for outstanding securities issued by another company or
  companies, preliminary to and for the purpose of effecting or consummating
  any of the foregoing; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(h)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any exchange of securities
  by a company which is not an investment company for securities issued by the
  Fund.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Under Section 13(a) of the
1940 Act, the vote of a majority of the Fund&#146;s outstanding voting securities is
required to authorize the Fund to:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>convert from a closed-end
  to an open-end investment company; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>borrow money, issue senior
  securities, underwrite securities issued by other persons, purchase or sell
  real estate or commodities or make loans to other persons, except in each
  case in accordance with the recitals of policy contained in the Fund&#146;s
  registration statement with respect thereto; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>deviate from its policy in
  respect of concentration of investments in the public utilities industry as
  recited in its registration statement, deviate from any investment policy
  which is changeable only if authorized by shareholder vote, or deviate from
  any other policy identified as fundamental in its registration statement; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>change the nature of its
  business so as to cease to be an investment company.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The foregoing voting
provisions will not apply with respect to the APS if, at or prior to the time
when a vote is required, all shares of APS have been (i) redeemed or (ii)
called for redemption and sufficient funds have been deposited in trust to
effect such redemption.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>40</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=5>The
  auction<A NAME=A011></A></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>GENERAL</B></FONT></P>

<P><FONT SIZE=2>The Articles Supplementary
provide that, except as otherwise described in this Prospectus, the applicable
dividend rate for each series of APS for each dividend period after the initial
dividend period will be the rate that results from an auction conducted as set
forth in the Articles Supplementary and summarized below. In such an auction,
persons determine to hold or offer to sell or, based on dividend rates bid by
them, offer to purchase or sell shares of APS. See the Articles Supplementary
included in the Statement of Additional Information for a more complete
description of the auction process.</FONT></P>

<P><FONT SIZE="2"><B>Auction agency agreement.</B> The Fund has entered into an auction agency agreement with the auction agent
(currently, The Bank of New York) which provides, among other things, that the
auction agent will follow the auction procedures to determine the applicable
dividend rate for each series of APS, so long as the applicable dividend rate
for such series of APS is to be based on the results of an auction. </FONT></P>


<P><FONT SIZE="2">The auction
agent may terminate the auction agency agreement upon 45 days&#146; notice to the
Fund. If the auction agent should resign, the Fund will use its best efforts to
enter into an agreement with a successor auction agent containing substantially
the same terms and conditions as the auction agency agreement. The Fund may
remove the auction agent provided that, prior to removal, the Fund has entered
into a replacement agreement with a successor auction agent. </FONT></P>

<P><FONT SIZE="2"><B>Broker-Dealer agreements.
</B>Each auction requires the participation of one or more Broker-Dealers. The
auction agent will enter into agreements with several Broker-Dealers selected
by the Fund, which provide for the participation of those Broker-Dealers in
auctions for APS. </FONT></P>

<P><FONT SIZE=2>The auction agent will pay
to each Broker-Dealer after each auction, from funds provided by the Fund, a
service charge at the annual rate of &frac14; of 1% in the case of any auction before a
dividend period of 364 days or less, or a percentage agreed to by the Fund and
the Broker-Dealers, in the case of any auction before a dividend period of 365
days or longer, of the purchase price of APS placed by a Broker-Dealer at the
auction.</FONT></P>

<P><FONT SIZE=2>The Fund may request the
auction agent to terminate one or more Broker-Dealer Agreements at any time
upon five days&#146; notice, provided that at least one Broker-Dealer Agreement is
in effect after termination of the agreements.</FONT></P>

<P><FONT SIZE=2>The Broker-Dealer Agreements
provide that a Broker-Dealer may submit orders in auctions for its own account,
unless the Fund notifies all Broker-Dealers that they no longer may do so;
provided that Broker-Dealers may continue to submit hold orders and sell
orders. Any Broker-Dealer submitting an order for its own account in any
auction could have an advantage over other potential holders in that it would
have knowledge of other orders placed through it in that auction. A
Broker-Dealer would not, however, have knowledge of orders submitted by other
Broker-Dealers, if any. As a result of bidding by the Broker-Dealer in an
auction, the applicable dividend rate may be higher or lower than the rate that
would have prevailed had the Broker-Dealer not bid. A Broker-Dealer may also
bid in an auction in order to prevent what would otherwise be (1) a failed
auction, (2) an &#147;all-hold&#148; auction, or (3) the implementation of an applicable
dividend rate that the Broker-Dealer believes, in its sole judgment, does not
reflect the market for such securities at the time of the auction.
Broker-Dealers may, but are not obligated to, advise owners of APS that the
rate that will apply in an &#147;all-hold&#148; auction is often a lower rate than would
apply if owners submit bids, and such advice, if given, may facilitate the
submission of bids by existing owners that would avoid the occurrence of an
&#147;all-hold&#148; auction. In the Broker-Dealer Agreements, the Broker-Dealers agree
to handle customers&#146; orders in accordance with their respective duties under
applicable securities laws and rules.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>41</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The auction</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The information in this
paragraph has been furnished by the Underwriter for inclusion in this
Prospectus. According to published news reports, the SEC has requested
information from a number of broker-dealers regarding certain of their
practices in connection with auction rate securities, such as the practices
described in the preceding paragraph. Such published news reports also indicate
that the SEC has requested that each broker-dealer receiving the request for
information voluntarily conduct an investigation regarding its practices and
procedures in auction rate securities markets. The Underwriter has advised the
Fund that it and certain other participants in the auction rate securities
markets, including both taxable and tax-exempt markets, have received the
request for information from the SEC described above. The Underwriter is
cooperating with the SEC in providing the requested information. No assurance
can be given as to whether the results of this process will affect the market
for the APS or the auctions therefor.</FONT></P>

<P><FONT SIZE=2><B>AUCTION PROCEDURES</B></FONT></P>

<P><FONT SIZE=2>The following is a brief
summary of the auction procedures for the APS. They are described in the
Statement of Additional Information in more detail.</FONT></P>

<P><FONT SIZE=2>Prior to the submission
deadline on each auction date for shares of APS, each customer of a Broker-Dealer
who is listed on the records of that Broker-Dealer (or, if applicable, the
auction agent) as a beneficial owner of APS may submit the following types of
orders with respect to shares of APS to that Broker-Dealer.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Hold order: indicating its
  desire to hold shares of APS without regard to the applicable dividend rate
  for the next dividend period.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Bid: indicating its desire
  to sell shares of APS at $25,000 per share if the applicable dividend rate
  for the next dividend period is less than the rate specified in the bid.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Sell order: indicating its
  desire to sell shares of APS at $25,000 per share without regard to the
  applicable dividend rate for the next dividend period.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>A beneficial owner may
submit different types of orders to its Broker-Dealer with respect to the
shares of APS then held by the beneficial owner. A beneficial owner of shares
of such series that submits its bid with respect to the APS to its
Broker-Dealer having a rate higher than the maximum applicable dividend rate
for the APS on the auction date will be treated as having submitted a sell
order to its Broker-Dealer. A beneficial owner of APS that fails to submit an
order to its Broker-Dealer with respect to the APS will ordinarily be deemed to
have submitted a hold order with respect to the APS to its Broker-Dealer.
However, if a beneficial owner of APS fails to submit an order with respect to
such shares of such series to its Broker-Dealer for an auction relating to a
dividend period of more than 28 days, such beneficial owner will be deemed to
have submitted a sell order to its Broker-Dealer. A sell order constitutes an
irrevocable offer to sell the shares of APS subject to the sell order. A
beneficial owner that offers to become the beneficial owner of additional shares
of APS is, for purposes of such offer, a potential holder as discussed below.</FONT></P>

<P><FONT SIZE=2>A potential holder is either
a customer of a Broker-Dealer that is not a beneficial owner of a series of APS
but that wishes to purchase shares of APS of such series or that is a
beneficial owner of shares of APS of such series that wishes to purchase
additional shares of APS of such series. A potential holder may submit bids to
its Broker-Dealer in which it offers to purchase shares of such series at
$25,000 per share if the applicable dividend rate for shares of such series for
the next dividend period is not less than the specified rate in such bid. A bid
placed by a potential holder of shares of such series specifying a rate higher
than the maximum applicable dividend rate for shares of such series on the
auction date will not be accepted.</FONT></P>

<P><FONT SIZE=2>The Broker-Dealers in turn
will submit the orders of their respective customers who are beneficial owners
and potential holders to the auction agent. They will designate themselves
(unless otherwise</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>42</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The auction</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>permitted by the Fund) as
existing holders of shares subject to orders submitted or deemed submitted to
them by beneficial owners. They will designate themselves as potential holders
of shares subject to orders submitted to them by potential holders. However,
neither the Fund nor the auction agent will be responsible for a
Broker-Dealer&#146;s failure to comply with these procedures. Any order placed with
the auction agent by a Broker-Dealer as or on behalf of an existing holder or a
potential holder will be treated the same way as an order placed with a
Broker-Dealer by a beneficial owner or potential holder. Similarly, any failure
by a Broker-Dealer to submit to the auction agent an order for any shares of
APS held by it or customers who are beneficial owners will be treated as a
beneficial owner&#146;s failure to submit to its Broker-Dealer an order in respect
of shares of APS held by it. A Broker-Dealer may also submit orders to the
auction agent for its own account as an existing holder or potential holder,
provided it is not an affiliate of the Fund.</FONT></P>

<P><FONT SIZE=2>There are sufficient
clearing bids for APS in an auction if the number of shares of APS subject to
bids submitted or deemed submitted to the auction agent by Broker-Dealers for
potential holders with rates or spreads equal to or lower than the maximum
applicable dividend rate for the APS is at least equal to or exceeds the sum of
the number of shares of APS subject to sell orders and the number of shares of
APS subject to bids specifying rates or spreads higher than the maximum
applicable dividend rate for APS submitted or deemed submitted to the auction
agent by Broker-Dealers for existing holders of APS. If there are sufficient
clearing bids for APS, the applicable dividend rate for APS for the next
succeeding dividend period thereof will be the lowest rate specified in the
submitted bids which, taking into account such rate and all lower rates bid by
Broker-Dealers as or on behalf of existing holders and potential holders, would
result in existing holders and potential holders owning the shares of APS
available for purchase in the auction.</FONT></P>

<P><FONT SIZE=2>If there are not sufficient
clearing bids for APS, the applicable dividend rate for the next dividend
period will be the maximum applicable dividend rate for APS on the auction
date. If this happens, beneficial owners of APS that have submitted or are
deemed to have submitted sell orders may not be able to sell in the auction all
shares of APS subject to such sell orders. If all of the outstanding shares of
APS are the subject of submitted hold orders, the applicable dividend rate for
the next dividend period will then be 80% of the reference rate (i.e., the
&#147;all-hold&#148; rate).</FONT></P>

<P><FONT SIZE=2>The auction procedure
includes a pro rata allocation of shares for purchase and sale, which may
result in an existing holder continuing to hold or selling, or a potential
holder purchasing, a number of shares of APS that is different than the number
of shares specified in its order. To the extent the allocation procedures have
that result, Broker-Dealers that have designated themselves as existing holders
or potential holders in respect of customer orders will be required to make
appropriate pro rata allocations among their respective customers.</FONT></P>

<P><FONT SIZE=2>Settlement of purchases and
sales will be made on the next business day (which is also a dividend payment
date) after the auction date through DTC. Purchasers will make payment through
their Agent Members in same-day funds to DTC against delivery to their
respective Agent Members. DTC will make payment to the sellers&#146; Agent Members
in accordance with DTC&#146;s normal procedures, which now provide for payment
against delivery by their Agent Members in same-day funds. <BR><BR>The auctions for
Series T APS will normally be held every Tuesday, and each subsequent dividend
period will normally begin on the following Wednesday; the auctions for Series
R APS will normally be held every Thursday, and each subsequent dividend period
will normally begin on the following Friday.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>43</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>The auction</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The following is a
simplified example of how a typical auction works. Assume that the Fund has
1,000 outstanding shares of APS and three existing holders. The three existing
holders and three potential holders submit orders through Broker-Dealers at the
auction:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="20%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="34%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="37%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Existing Holder A</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Owns 500 shares, wants to
  sell all 500 shares if applicable dividend rate is less than 2.10%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2> Places bid order of 2.10% rate for all 500 shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Existing Holder B</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Owns 300 shares, wants to
  hold</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Places hold order &#151; will
  take the applicable dividend rate</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Existing Holder C</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Owns 200 shares, wants to
  sell all 200 shares if applicable dividend rate is less than 1.90%</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Places bid order of 1.90%
  rate for all 200 shares</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Potential Holder D</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Wants to buy 200 shares</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Places order to buy at or
  above 2.00%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Potential Holder E</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Wants to buy 300 shares</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Places order to buy at or
  above 1.90%</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Potential Holder F</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Wants to buy 200 shares</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Places order to buy at or
  above 2.10%</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The lowest dividend rate
that will result in all 1,000 shares of APS continuing to be held is 2.00% (the
offer by D). Therefore, the applicable dividend rate will be 2.00%. Existing
holders B and C will continue to own their shares. Existing holder A will sell
its shares because A&#146;s dividend rate bid was higher than the applicable
dividend rate. Potential holder D will buy 200 shares and potential holder E
will buy 300 shares because their bid rates were at or below the applicable
dividend rate. Potential holder F will not buy shares because its bid rate was
above the applicable dividend rate.</FONT></P>

<P><FONT SIZE=2>If an auction date is not a
business day because the New York Stock Exchange is closed for business due to
an act of God, natural disaster, act of war, civil or military disturbance, act
of terrorism, sabotage, riots or a loss or malfunction of utilities or
communications services, or the auction agent is not able to conduct an auction
in accordance with the auction procedures for any such reason, then the
applicable dividend rate for the next dividend period will be the applicable
dividend rate determined on the previous auction date.</FONT></P>

<P><FONT SIZE=2>If a dividend payment date
is not a business day because the New York Stock Exchange is closed for
business due to an act of God, natural disaster, act of war, civil or military
disturbance, act of terrorism, sabotage, riots or a loss or malfunction of
utilities or communications services, or the dividend payable on such date can
not be paid for any such reason, then: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The dividend payment date
  for the affected dividend period will be the next business day on which the
  Fund and its paying agent, if any, can pay the dividend; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The affected dividend
  period will end on the day it otherwise would have ended; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The next dividend period
  will begin and end on the dates on which it otherwise would have begun and
  ended.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>SECONDARY MARKET TRADING AND TRANSFERS OF APS</B></FONT></P>

<P><FONT SIZE=2>The Broker-Dealers are
expected to maintain a secondary trading market in the APS outside of auctions,
but are not obligated to do so, and may discontinue such activity at any time.
There can be no assurance that any secondary trading market in the APS will
provide owners with liquidity of investment. The APS will not be listed on any
stock exchange or traded on the NASDAQ Stock Market. Investors who purchase
shares in an auction for a special dividend period should note that because the
dividend rate on such shares will be fixed for the length of such dividend
period, the value of the</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>44</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=5>The auction</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>shares may fluctuate in response
to changes in interest rates and may be more or less than their original cost
if sold on the open market in advance of the next auction.</FONT></P>

<P><FONT SIZE=2>A beneficial owner or an
existing holder may sell, transfer or otherwise dispose of APS only in whole
shares and only: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>pursuant to a bid or sell
  order placed with the auction agent in accordance with the auction
  procedures; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>to a Broker-Dealer; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>to such other persons as
  may be permitted by the Fund; </FONT></P>
</TD>
</TR>
<TR>
<TD>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP colspan=3>
<P><FONT SIZE=2>provided, however, that: </FONT></P>
</TD>
</TR>

<TR>
<TD>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a sale, transfer or other
  disposition of APS from a customer of a Broker-Dealer who is listed on the
  records of that Broker-Dealer as the holder of such shares to that
  Broker-Dealer or another customer of that Broker- Dealer shall not be deemed
  to be a sale, transfer or other disposition if such Broker-Dealer remains the
  existing holder of the shares; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>in the case of all
  transfers other than pursuant to auctions, the Broker-Dealer (or other
  person, if permitted by the Fund) to whom such transfer is made will advise
  the auction agent of such transfer.</FONT></P>
</TD>
</TR>
</TABLE>

<P><A NAME=A012></A><FONT SIZE=5>Description of capital structure</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s authorized
capital stock consists of 250,000,000 shares of common stock, $0.001 par value
per share, of which 224,505,404 were outstanding at March 31, 2006, and
100,000,000 shares of preferred stock, $0.001 par value per share, of which
17,000 were outstanding at March 31, 2006.</FONT></P>

<P><FONT SIZE=2><B>DESCRIPTION OF COMMON STOCK</B></FONT></P>

<P><FONT SIZE=2>Holders of common stock are
entitled to dividends when and as declared by the board of directors, to one vote
per share in the election of directors and other matters submitted to the
shareholders (with no right of cumulation), and to equal rights per share in
the event of liquidation. They have no preemptive rights. There are no
redemption, conversion or sinking fund provisions. The shares are not liable to
further calls or to assessment by the Fund.</FONT></P>

<P><FONT SIZE=2>Under the Fund&#146;s dividend
reinvestment plan common shareholders may elect to have all dividends and
capital gains distributions paid on their common stock automatically reinvested
by The Bank of New York, as agent for shareholders, in additional shares of
common stock of the Fund. See &#147;Dividend Reinvestment Plan&#148; in the Statement of
Additional Information for a description of the dividend reinvestment plan of
the Fund.</FONT></P>

<P><FONT SIZE=2><B>DESCRIPTION OF PREFERRED STOCK</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s charter expressly
grants authority to the board of directors to authorize the issue of one or
more series of preferred stock, and to fix by resolution or resolutions
providing for the issue of each such series the preferences, conversion or
other rights, voting powers, restrictions, limitations as to dividends,
qualifications, and terms and conditions of redemptions, of such series. To
date, five series of RPS have been issued and three series of APS have been authorized
for issuance.</FONT></P>

<P><FONT SIZE=2>Holders of preferred stock
are entitled to receive dividends before the holders of the common stock and
are entitled to receive the liquidation value of their shares ($100,000 per
share with respect to the RPS and $25,000 per share with respect to the APS and
the Existing APS in each case plus accumulated but unpaid dividends) before any
distributions are made to the holders of the common</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>45</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Description of capital structure</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>stock, in the event the Fund
is ever liquidated. Each share of preferred stock is entitled to &frac14; vote per
$25,000 of liquidation preference. The holders of the preferred stock have the
right to elect two directors of the Fund at all times and to elect a majority
of the directors if at any time dividends on the preferred stock are unpaid for
two years. In addition to any approval by the holders of the shares of the Fund
that might otherwise be required, the approval of the holders of a majority of
the outstanding shares of the preferred stock, voting separately as a class,
will be required under the Investment Company Act to adopt any plan of
reorganization that would adversely affect the holders of preferred stock and
to approve, among other things, changes in the Fund&#146;s sub-classification as a
closed-end investment company, changes in its investment objectives or changes
in its fundamental investment restrictions.</FONT></P>

<P><FONT SIZE=2>Subject to certain
restrictions, the Fund may, and under certain circumstances is required to,
redeem all or a portion of the RPS at a price of $100,000 per share and all or
a portion of the APS and the Existing APS at a price of $25,000 per share, in
each case plus accumulated but unpaid dividends. The shares of preferred stock
are not liable to further calls or to assessment by the Fund. There are no
preemptive rights or sinking fund or conversion provisions.</FONT></P>

<P><FONT SIZE=2><B>DESCRIPTION OF BORROWINGS</B></FONT></P>

<P><FONT SIZE=2>The Fund is authorized to
borrow money on a secured or unsecured basis for any purpose of the Fund in an
aggregate amount not exceeding 15% of the value of the Fund&#146;s total assets at
the time of any such borrowing (exclusive of all obligations on amounts held as
collateral for securities loaned to other persons to the extent that such
obligations are secured by assets of at least equivalent value). However, for so
long as the Fund&#146;s preferred stock is rated by S&amp;P, the Fund will limit the
aggregate amount of its Borrowings to 10% of the value of its total assets and
will not incur any Borrowings, unless advised by S&amp;P that such Borrowings
would not adversely affect S&amp;P&#146;s then-current rating of the preferred
stock.</FONT></P>

<P><FONT SIZE=2>As of May __, 2006, the Fund
retired all of its CP Notes and terminated its CP Note program and the related
backup credit facility. As a result, the Fund currently has no Borrowings,
although it could enter into Borrowings in the future.</FONT></P>

<P><FONT SIZE=2>Under the requirements of
the Investment Company Act, the Fund, immediately after issuing any Borrowings
that are senior securities representing indebtedness (as defined in the
Investment Company Act), must have an asset coverage of at least 300%. With
respect to any Borrowings, asset coverage means the ratio which the value of
the total assets of the Fund, less all liabilities and indebtedness not
represented by senior securities, bears to the aggregate amount of any such Borrowings
that are senior securities representing indebtedness, issued by the Fund.
Certain types of Borrowings may also result in the Fund being subject to
covenants in credit agreements relating to asset coverages or portfolio
composition or otherwise. In addition, should the Fund incur any future
Borrowings in the form of CP Notes, the Fund may be subject to certain
restrictions imposed by guidelines of one or more rating agencies which may
issue ratings for any such CP Notes issued by the Fund. Such restrictions may
be more stringent than those imposed by the Investment Company Act.</FONT></P>

<P><FONT SIZE=2>The Investment Company Act
does (in certain circumstances) grant to the lenders to the Fund certain voting
rights in the event of default in the payment of interest on or repayment of
principal.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>46</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>
<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><A NAME=A013></A><FONT SIZE=5>Certain provisions in the charter and bylaws and certain
provisions of Maryland law</FONT></P>

<P><FONT SIZE=2><B>ANTI-TAKEOVER PROVISIONS IN THE CHARTER</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s charter includes
provisions that could have the effect of limiting the ability of other entities
or persons to acquire control of the Fund or to change the composition of its
board of directors and could have the effect of depriving common stockholders
of an opportunity to sell their shares at a premium over prevailing market
prices by discouraging a third party from seeking to obtain control of the
Fund. The board of directors is divided into three classes, each having a term
of three years. At each annual meeting of shareholders, the term of one class
will expire. This provision could delay for up to two years the replacement of
a majority of the board of directors. A director may be removed from office
with or without cause only by vote of the holders of at least 75% of the shares
of preferred stock or of common stock, as the case may be, entitled to be voted
on the matter.</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s charter requires
the favorable vote of the holders of at least 75% of the shares of preferred
stock and common stock of the Fund entitled to be voted on the matter, voting
together as a single class, to approve, adopt or authorize the following: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a merger or consolidation
  of the Fund with another corporation, </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a sale of all or
  substantially all of the Fund&#146;s assets (other than in the regular course of
  the Fund&#146;s investment activities), or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a liquidation or
  dissolution of the Fund, unless such action has been approved, adopted or
  authorized by the affirmative vote of two-thirds of the total number of
  directors fixed in accordance with the bylaws, in which case the affirmative
  vote of the holders of a majority of the outstanding shares of preferred
  stock and common stock entitled to be voted on the matter, voting together as
  a single class, is required.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>In addition, the holders of
a majority of the outstanding shares of the preferred stock, voting separately
as a class, would be required under the Investment Company Act to adopt any
plan of reorganization that would adversely affect the holders of the preferred
stock.</FONT></P>

<P><FONT SIZE=2>Finally, conversion of the
Fund to an open-end investment company would require an amendment to the
charter. Such an amendment would require the favorable vote of the holders of a
at least 75% of the shares of preferred stock and common stock of the Fund
entitled to be voted on the matter, voting together as a single class, unless
such amendment has been approved, adopted or authorized by the affirmative vote
of two-thirds of the total number of directors fixed in accordance with the
bylaws, in which case the affirmative vote of the holders of a majority of the
outstanding shares of preferred stock and common stock entitled to be voted on
the matter, voting together as a single class, would be required. Shareholders
of an open-end investment company may require the company to redeem their
shares of common stock at any time (except in certain circumstances as
authorized by or under the Investment Company Act) at their net asset value,
less such redemption charge, if any, as might be in effect at the time of a
redemption. In addition, conversion to an open-end investment company would
require redemption of all outstanding shares of the preferred stock.</FONT></P>

<P><FONT SIZE=2>The board of directors has
determined that the 75% voting requirements described above, which are greater
than the minimum requirements under Maryland law or the Investment Company Act,
are in the best interests of the Fund. Reference should be made to the charter
on file with the SEC for the full text of these provisions.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>47</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Certain provisions in the charter and bylaws and certain provisions
  of Maryland law</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>ANTI-TAKEOVER PROVISIONS IN THE BYLAWS</B></FONT></P>

<P><FONT SIZE=2>The Fund&#146;s bylaws establish
advance notice procedures for shareholder proposals to be brought before an
annual meeting of shareholders, and for proposed nominations of candidates for
election to the board of directors at an annual or special meeting of
shareholders. Generally, such notices must be received by the Secretary of the
Fund, in the case of an annual meeting, not less than 90 days nor more than 120
days prior to the first anniversary of the preceding year&#146;s annual meeting and,
in the case of a special meeting, not later than the close of business on the
tenth day following the day on which notice of the date of the special meeting
was mailed or public announcement of the date of the special meeting was made,
whichever first occurs. Reference should be made to the bylaws on file with the
SEC for the detailed requirements of these advance notice procedures.</FONT></P>

<P><FONT SIZE=2><B>ANTI-TAKEOVER PROVISIONS OF MARYLAND LAW</B></FONT></P>

<P><FONT SIZE=2><B>Maryland Business Combination Act</B></FONT></P>

<P><FONT SIZE=2>Under Maryland law,
&#147;business combinations&#148; between a Maryland corporation and an interested
stockholder or an affiliate of an interested stockholder are prohibited for
five years after the most recent date on which the interested stockholder
becomes an interested stockholder. These business combinations include a
merger, consolidation, share exchange, or, in circumstances specified in the
statute, an asset transfer or issuance or reclassification of equity
Securities. An interested stockholder is defined as: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any person who beneficially
  owns ten percent or more of the voting power of the corporation&#146;s shares; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>an affiliate or associate
  of the corporation who, at any time within the two-year period prior to the
  date in question, was the beneficial owner of ten percent or more of the
  voting power of the then outstanding voting stock of the corporation.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>A person is not an
interested stockholder under the statute if the board of directors approved in
advance the transaction by which he otherwise would have become an interested stockholder.
However, in approving a transaction, the board of directors may provide that
its approval is subject to compliance, at or after the time of approval, with
any terms and conditions determined by the board.</FONT></P>

<P><FONT SIZE=2>After the five-year
prohibition, any business combination between the Maryland corporation and an
interested stockholder generally must be recommended by the board of directors
of the corporation and approved by the affirmative vote of at least:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>80% of the votes entitled
  to be cast by holders of outstanding shares of voting stock of the
  corporation; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>two-thirds of the votes
  entitled to be cast by holders of voting stock of the corporation other than
  shares held by the interested stockholder with whom or with whose affiliate
  the business combination is to be effected or held by an affiliate or
  associate of the interested stockholder.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>These super-majority vote
  requirements do not apply if the corporation&#146;s common stockholders receive a
  minimum price, as defined under Maryland law, for their shares in the form of
  cash or other consideration in the same form as previously paid by the
  interested stockholder for its shares.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The statute permits various
exemptions from its provisions, including business combinations that are exempted
by the board of directors before the time that the interested stockholder
becomes an interested stockholder. </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>48</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Certain provisions in the charter and bylaws and certain provisions
  of Maryland law</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Maryland Control Share Acquisition Act</B></FONT></P>

<P><FONT SIZE=2>Maryland law provides that
control shares of a Maryland corporation acquired in a control share
acquisition have no voting rights except to the extent approved by a vote of
two-thirds of the votes entitled to be cast on the matter. Shares owned by the
acquiror, by officers or by directors who are employees of the corporation are
excluded from shares entitled to vote on the matter. Control Shares are voting
shares of stock which, if aggregated with all other shares of stock owned by
the acquiror or in respect of which the acquiror is able to exercise or direct
the exercise of voting power (except solely by virtue of a revocable proxy),
would entitle the acquiror to exercise voting power in electing directors
within one of the following ranges of voting power: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>one-tenth or more but less
  than one-third, </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>one-third or more but less
  than a majority, or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a majority or more of all
  voting power.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Control shares do not
include shares the acquiring person is then entitled to vote as a result of
having previously obtained stockholder approval. A control share acquisition
means the acquisition of control shares, subject to certain exceptions.</FONT></P>

<P><FONT SIZE=2>A person who has made or
proposes to make a control share acquisition may compel the board of directors
of the corporation to call a special meeting of stockholders to be held within
50 days of demand to consider the voting rights of the shares. The right to
compel the calling of a special meeting is subject to the satisfaction of
certain conditions, including an undertaking to pay the expenses of the
meeting. If no request for a meeting is made, the corporation may itself
present the question at any stockholders meeting.</FONT></P>

<P><FONT SIZE=2>If voting rights are not
approved at the meeting or if the acquiring person does not deliver an
acquiring person statement as required by the statute, then the corporation may
redeem for fair value any or all of the control shares, except those for which
voting rights have previously been approved. The right of the corporation to
redeem control shares is subject to certain conditions and limitations. Fair
value is determined, without regard to the absence of voting rights for the
control shares, as of the date of the last control share acquisition by the
acquiror or of any meeting of stockholders at which the voting rights of the
shares are considered and not approved. If voting rights for control shares are
approved at a stockholders meeting and the acquiror becomes entitled to vote a
majority of the shares entitled to vote, all other stockholders may exercise
appraisal rights. The fair value of the shares as determined for purposes of
appraisal rights may not be less than the highest price per share paid by the
acquiror in the control share acquisition.</FONT></P>

<P><FONT SIZE=2>The control share
acquisition statute does not apply (a) to shares acquired in a merger,
consolidation or share exchange if the corporation is a party to the
transaction, or (b) to acquisitions approved or exempted by the charter or
bylaws of the corporation.</FONT></P>

<P><FONT SIZE=2><B>Maryland Unsolicited Takeovers Act</B></FONT></P>

<P><FONT SIZE=2>Subtitle 8 of Title 3 of the
Maryland General Corporation Law permits a Maryland corporation with a class of
equity securities registered under the Exchange Act and at least three
independent directors to elect to be subject, by provision in its charter or bylaws
or a resolution of its board of directors and notwithstanding any contrary
provision in the charter of bylaws, to any or all of five provisions: </FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a classified board; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a two-thirds vote
  requirement for removing a director; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a requirement that the
  number of directors be fixed only by vote of directors; </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a requirement that a
  vacancy on the board be filled only by the remaining directors and for the
  remainder of the full term of the class of directors in which the vacancy occurred;
  and </FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>49</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Certain provisions in the charter and bylaws and certain provisions
  of Maryland law</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<BR>

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<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#149;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>a majority requirement for
  the calling of a special meeting of stockholders. </FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE="2">A corporation may also adopt
a charter provision or resolution of the Board of Directors that prohibits the
corporation from electing to be subject to any or all of the provisions of the
subtitle. <B>At this time, we have
elected to be subject to the provisions regarding filling of vacancies, but
have not elected to be subject to any other of these provisions. However,
because our charter does not include a provision prohibiting us from electing
to be subject to any of these provisions, our Board of Directors may make such
an election at any time. Through provisions in our charter unrelated to
Subtitle 8, we already have a classified board and require more than a
two-thirds vote for the removal of directors.</B> </FONT></P>

<P><A NAME=A014></A><FONT SIZE=5>Repurchase of common stock</FONT></P>

<P><FONT SIZE=2>Shares of closed-end
investment companies often trade at a discount to their net asset values, and
the Fund&#146;s common stock may also trade at a discount to its net asset value,
although it is possible that it may trade at a premium above net asset value.
The market price of the Fund&#146;s common stock is determined by such factors as relative
demand for and supply of such common stock in the market, the Fund&#146;s net asset
value, general market and economic conditions and other factors beyond the
control of the Fund. Although the Fund&#146;s common shareholders do not have the
right to redeem their common stock, the Fund may take action to repurchase
common stock in the open market or make tender offers for its common stock.
This may have the effect of reducing any market discount from net asset value.</FONT></P>

<P><FONT SIZE=2>There is no assurance that,
if action is undertaken to repurchase or tender for shares of common stock,
such action will result in the common stock trading at a price which
approximates net asset value. Although share repurchases and tenders could have
a favorable effect on the market price of the Fund&#146;s common stock, you should
be aware that the acquisition of shares of common stock by the Fund will
decrease the total net assets of the Fund and, therefore, may have the effect
of increasing the Fund&#146;s expense ratio and decreasing the asset coverage with
respect to any APS outstanding. Any share repurchases or tender offers will be
made in accordance with requirements of the Securities Exchange Act of 1934
(the &#147;Exchange Act&#148;), the Investment Company Act and the principal stock
exchange on which the common stock is traded.</FONT></P>

<P><A NAME=A015></A><FONT SIZE=5>U.S. federal income tax matters</FONT></P>

<P><FONT SIZE=2>The following is a summary
discussion of certain federal income tax consequences that may be relevant to a
U.S. shareholder that acquires, holds and/or disposes of shares of APS. It
reflects provisions of the Code, existing Treasury regulations, rulings
published by the IRS, and other applicable authority, in each case as of the
date of this Prospectus. These authorities are subject to change by legislative
or administrative action, possibly with retroactive effect. The following
discussion is only a summary of some of the important tax considerations
generally applicable to investments in the Fund and does not constitute tax
advice. For more detailed information regarding tax considerations, see the
Statement of Additional Information. There may be other tax considerations
applicable to particular investors. In addition, income earned through an
investment in the Fund may be subject to state, local and foreign taxes.</FONT></P>

<P><FONT SIZE=2><B>TAXATION OF THE FUND</B></FONT></P>

<P><FONT SIZE=2>The Fund has elected to be
treated, has qualified and intends to continue to qualify for the special tax
treatment afforded regulated investment companies under the provisions of
Subchapter M of the Code. As long as the Fund so qualifies, in any taxable year
in which it distributes at least 90% of the</FONT></P>

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<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>50 </B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>sum of its investment
company taxable income (consisting generally of taxable net investment income,
net short-term capital gain and net realized gains from certain hedging
transactions) and certain other income, the Fund (but not its shareholders)
will not be subject to federal income tax to the extent that it distributes its
investment company taxable income and net capital gain (the excess of net
long-term capital gain over net short-term capital loss). The Fund intends to
distribute substantially all of such income and gain each year.</FONT></P>

<P><FONT SIZE=2>The Fund intends to take the
position that under present law the APS will constitute stock of the Fund, and
distributions by the Fund with respect to its APS (other than distributions in
redemption of APS that are treated as exchanges of stock under Section 302(b)
of the Code) will constitute dividends to the extent of the Fund&#146;s current and
accumulated earnings and profits as calculated for federal income tax purposes.
It is possible, however, that the IRS might take a contrary position,
asserting, for example, that the APS constitutes debt of the Fund. If this
position were upheld, distributions by the Fund to holders of APS would
constitute interest, whether or not they exceeded the earnings and profits of
the Fund, would be included in full in the income of the recipient and would be
taxed as ordinary income. The following discussion assumes that shares of APS
are treated as stock.</FONT></P>

<P><FONT SIZE=2><B>TAXATION OF SHAREHOLDERS</B></FONT></P>

<P><FONT SIZE=2>Distributions of any net
investment income and net short-term capital gain will be taxable as ordinary
income (except to the extent that a reduced capital gains tax rate applies to
qualified dividend income). Distributions of the Fund&#146;s net capital gain, if
any, will be taxable to shareholders as long-term capital gains, regardless of
the length of time they held their shares. So long as the Fund has capital loss
carryforwards, distributions derived from capital gains in the Fund&#146;s portfolio
may constitute ordinary income, rather than capital gains, to shareholders.</FONT></P>

<P><FONT SIZE=2>Distributions, if any, in
excess of the Fund&#146;s earnings and profits will first reduce the adjusted tax
basis of a holder&#146;s shares and, after that basis has been reduced to zero, will
constitute capital gains to the shareholder (assuming the shares are held as
capital assets). For purposes of determining whether distributions are out of
the Fund&#146;s current or accumulated earnings and profits, the Fund&#146;s earnings and
profits will be allocated first to the Fund&#146;s preferred stock and then to the
Fund&#146;s common stock. <BR><BR>Subject to certain conditions and limitations, including
certain holding period requirements for the Fund and the shareholders under
applicable federal income tax provisions, a corporation receiving dividends with
respect to stock it owns in another corporation is allowed a deduction against
a portion of such dividend income received (the &#147;Dividends Received
Deduction&#148;). The Fund expects to receive dividends with respect to some or all
of the stocks in other corporations held by the Fund, and the Fund may
designate dividends paid by the Fund as eligible for the Dividends Received
Deduction to the extent that the Fund receives dividends for which the Fund
would be entitled to the Dividends Received Deduction if the Fund were a
regular corporation and not a regulated investment company. A corporation that
owns common stock or preferred stock of the Fund generally will be entitled to
a Dividends Received Deduction with respect to a designated portion of the
dividends it receives from the Fund. <BR><BR>To the extent that the source of dividends
or distributions with respect to the APS is dividends received by the Fund that
would be eligible for the Dividends Received Deduction, a corporate holder of
APS will be allowed a deduction equal to 70% of the dividends paid to it by the
Fund that are designated by the Fund as eligible for the Dividends Received
Deduction. The aggregate amount of Dividends Received Deductions that may be
taken by a corporation is limited to 70% of its taxable income, computed
without regard to any net operating loss deduction. The portion of a dividend
on the APS that can be designated as eligible for the Dividends Received
Deduction will be limited by the fact that dividend income received by the Fund
is allocated to the RPS first, before being allocated to any other class or
series of the Fund&#146;s stock. Dividends on the APS, the Existing APS and the
Fund&#146;s common stock will be designated as eligible for the Dividends Received
Deduction only to the extent that any qualifying income remains after dividends
are paid on the RPS.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>51</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>U.S. federal income tax matters</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>Dividends declared by the
Fund in October, November or December of any year and payable to shareholders
of record on a date in any of those months will be deemed to have been paid by
the Fund and received by the shareholders on December 31 of that year if the
dividends are paid by the Fund during the following January. Accordingly, those
dividends will be taxed to shareholders for the year in which that December 31
falls.</FONT></P>

<P><FONT SIZE=2>The Fund will inform
shareholders of the source and tax status of all distributions promptly after
the close of each calendar year. The IRS has taken the position that if a
regulated investment company has more than one class of stock, it may designate
distributions made to each class in any year as consisting of no more than that
class&#146;s proportionate share of particular types of income for that year,
including ordinary income and net capital gain. A class&#146;s proportionate share
of a particular type of income for a year is determined according to the
percentage of total dividends paid by the regulated investment company during
that year to the class. The IRS, however, will not render such designations
ineffective for federal income tax purposes even if it is a disproportionate
designation as long as such designation is made pursuant to a rule described in
a registration statement that was filed with the SEC before June 13, 1989.</FONT></P>

<P><FONT SIZE=2>The Fund has received a
private letter ruling from the IRS that states that the IRS will respect the
Fund&#146;s proposed method of designating income eligible for the Dividends
Received Deduction to the RPS, common stock, the Existing APS and the APS. More
specifically, the IRS will respect the Fund&#146;s designation of income eligible
for the Dividends Received Deduction to the RPS pro rata between dividend
income that is eligible for the Dividends Received Deduction (and that
constitutes qualified dividend income) and dividend income that is eligible for
the Dividends Received Deduction (but does not constitute qualified dividend
income). To the extent any qualifying income remains after dividends are paid
on the RPS, distributions on the common stock, the Existing APS and the APS
will be designated as income eligible for the Dividends Received Deduction on a
pro rata basis between these classes. Dividend income that constitutes
qualified dividend income (but is not eligible for the Dividends Received
Deduction) and net capital gain will be designated to the common stock, the
Existing APS and the APS (and to the RPS to the extent the Fund&#146;s qualified
income is less than the distribution to the RPS) on a pro rata basis among
these classes.</FONT></P>

<P><FONT SIZE=2>If at any time when any
shares of APS are outstanding the Fund does not meet the asset coverage
requirements of the Investment Company Act, the Fund will be required to
suspend distributions to holders of common stock until the asset coverage is
restored. See &#147;Description of APS&#151;Dividends and dividend periods&#151;Restrictions
on dividends and other payments.&#148; Such a suspension may prevent the Fund from
distributing at least 90% of the sum of its investment company taxable income
and certain other income and may, therefore, jeopardize the Fund&#146;s
qualification for taxation as a regulated investment company. Upon any failure
to meet the asset coverage requirements of the Investment Company Act, the
Fund, in its sole discretion, may redeem shares of APS in order to maintain or
restore the requisite asset coverage and avoid the adverse consequences to the
Fund and its shareholders of failing to qualify for treatment as a regulated
investment company. See &#147;Description of APS&#151;Redemption.&#148; There can be no
assurance, however, that any such action would achieve that objective.</FONT></P>

<P><FONT SIZE=2>Under current law, the U.S.
federal income tax rate on long-term capital gains recognized by individuals is
15% (or 5% for individuals in the 10% or 15% tax brackets) and by corporations
is 35%. &#147;Qualified dividend income&#148; received by individuals from certain
domestic and foreign corporations also is taxed at this reduced capital gains
tax rate. Qualified dividend income received by corporations is taxed at
ordinary income tax rates to the extent it is not eligible for and reduced by
the Dividends Received Deduction. The reduced long-term capital gains tax rate
will apply to capital gains realized by shareholders who sell shares of APS
that they have held for more than one year. The reduced rates, which do not
apply to short-term capital gains, generally apply to long-term capital gains
from sales or exchanges (and to Fund distributions of such gain) for taxable
years beginning before January 1, 2009. Fund distributions designated as
capital gain dividends should be eligible for the reduced rate applicable to
long-term capital gains for individuals. Ordinary income dividends paid by the
Fund will be eligible to be treated by individual Fund shareholders as
qualified dividend income taxed at the reduced</FONT></P>

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<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>52</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>U.S. federal income tax matters</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>capital gains rate to the extent
that some portion of the Fund&#146;s dividends are attributable to qualified
dividend income received by the Fund and to the extent that the Fund designates
such portion as qualified dividend income. The reduced rates apply only if
certain holding period requirements are satisfied by the shareholder. For this
purpose, &#147;qualified dividend income&#148; means dividends received by the Fund from
U.S. corporations and qualifying foreign corporations, provided that the Fund
satisfies certain holding period and other requirements in respect of the stock
of such corporations. As is the case with the Dividends Received Deduction, to
the extent the Fund is required to allocate income eligible for the Dividends
Received Deduction to the RPS, the allocation to the RPS generally will reduce
the dividends on the common stock and the APS that are eligible for the special
qualified dividend rate. <BR><BR>In the case of securities lending transactions,
payments in lieu of dividends are not treated as qualified dividend income.
Dividends received by the Fund from REITs are treated as qualified dividend
income eligible for this lower tax rate only in limited circumstances.</FONT></P>

<P><FONT SIZE=2>These special rules relating
to the taxation of the Fund&#146;s ordinary income dividends as qualified dividend
income generally apply to taxable years beginning before January 1, 2009.
Thereafter, the Fund&#146;s dividends, other than capital gain dividends, will be
fully taxable at ordinary income tax rates unless further legislative action is
taken.</FONT></P>

<P><FONT SIZE=2>A dividend paid by the Fund
to a shareholder will not be treated as qualified dividend income of the
shareholder if (1) the dividend is received with respect to any share held for
fewer than 61 days during the 121-day period beginning on the date which is 60
days before the date on which such share becomes ex-dividend with respect to
such dividend (or more than 90 days during the associated 181-day period, in
the case of dividends attributable to periods in excess of 366 days paid with
respect to preferred stock), (2) to the extent that the recipient is under an
obligation (whether pursuant to a short sale or otherwise) to make related
payments with respect to positions in substantially similar or related
property, or (3) if the recipient elects to have the dividend treated as
investment income for purposes of the limitation on deductibility of investment
interest.</FONT></P>

<P><FONT SIZE=2>Dividends and interest
received, and gains realized, by the Fund on foreign securities may be subject
to income, withholding or other taxes imposed by foreign countries and U.S.
possessions (collectively &#147;foreign taxes&#148;) that would reduce the return on its
securities. Tax conventions between certain countries and the United States,
however, may reduce or eliminate foreign taxes, and many foreign countries do
not impose taxes on capital gains in respect of investments by foreign
investors. Since less than 50% of the value of the Fund&#146;s total assets at the
close of its taxable year will consist of securities of foreign corporations,
no foreign tax credit with respect to any foreign taxes paid by the Fund will
pass through to its shareholders.</FONT></P>

<P><FONT SIZE=2>The Fund will inform
shareholders of the source and tax status of all distributions promptly after
the close of each calendar year.</FONT></P>

<P><FONT SIZE=2><B>SALES OF APS</B></FONT></P>

<P><FONT SIZE=2>The sale of APS (including
transfers in connection with a redemption or repurchase of APS treated as a
sale or exchange) will be a taxable transaction for federal income tax
purposes. A selling shareholder generally will recognize gain or loss equal to
the difference between the amount of cash (plus the fair market value of any
property received) and the holder&#146;s adjusted tax basis in the APS. If the
shares of APS are held as a capital asset, the gain or loss will be a capital
gain or loss and will be long-term if the shares of APS have been held for more
than one year. The maximum tax rate applicable to capital gains recognized by
individuals and other non-corporate taxpayers is (i) the same as the maximum
ordinary income tax rate for gains recognized on the sale of capital assets
held for one year or less, or (ii) 15% for gains recognized on the sale of
capital assets held for more than one year (as well as certain capital gain
dividends) (5% for individuals in the 10% or 15% tax brackets). The maximum tax
rate applicable to net capital gains recognized by a corporate taxpayer is 35%.
Any loss realized on a</FONT></P>

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<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>53</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
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<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>U.S. federal income tax matters</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>disposition of shares of APS
held for six months or less will be treated as a long-term, rather than a
short-term, capital loss to the extent of any capital gain distributions
received with respect to those shares of APS. A shareholder&#146;s holding period
for APS is suspended for any periods during which the shareholder&#146;s risk of
loss is diminished as a result of holding one or more other positions in substantially
similar or related property, or through certain options, sales contracts or
short sales. Any loss realized on a sale or exchange of shares of APS will be
disallowed to the extent those shares of APS are replaced by other
substantially identical shares within a period of 61 days beginning 30 days
before and ending 30 days after the date of disposition of the original shares
of APS. In that event, the basis of the replacement shares of APS will be
adjusted to reflect the disallowed loss.</FONT></P>

<P><FONT SIZE=2>An investor should also be
aware that the benefits of the reduced tax rate applicable to long-term capital
gains and qualified dividend income may be impacted by the application of the
alternative minimum tax to individual shareholders.</FONT></P>

<P><FONT SIZE=2><B>BACKUP WITHHOLDING</B></FONT></P>

<P><FONT SIZE=2>The Fund is required to
withhold a percentage of all taxable dividends, capital gain distributions and
repurchase proceeds payable to any individuals and certain other non-corporate
shareholders who do not provide the Fund with a correct taxpayer identification
number. Such withholding from taxable dividends and capital gain distributions
is also required for such shareholders who fail to provide certain
certifications or otherwise are subject to backup withholding. Backup
withholding is not an additional tax. Any amounts withheld from payments made
to a shareholder may be refunded or credited against the shareholder&#146;s U.S.
federal income tax liability, provided that the required information is
furnished to the IRS.</FONT></P>

<P><FONT SIZE=2>The foregoing briefly
summarizes some of the important federal income tax consequences of investing
in the APS, reflects the federal tax law as of the date of this Prospectus, and
does not address special tax rules applicable to certain types of investors,
such as foreign investors. Investors should consult their tax advisors
regarding other federal, state or local tax considerations that may be
applicable in their particular circumstances, as well as any proposed tax law
changes. A more complete discussion of the tax rules applicable to the Fund and
its shareholders can be found in the Statement of Additional Information, which
is incorporated by reference into this Prospectus.</FONT></P>

<P><A NAME=A016></A><FONT SIZE=5>Underwriting</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
has agreed, subject to the terms and conditions of the Underwriting Agreement
with the Fund and the Adviser, to purchase from the Fund the number of APS set
forth below. The Underwriter is committed to purchase and pay for all of the
Fund&#146;s APS if any are purchased.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="72%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="8%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Underwriter</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of shares of APS</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE color=black ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE color=black  ALIGN=CENTER>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE color=black  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>8,000</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=3 WIDTH="100%" NOSHADE COLOR=GRAY ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The Underwriter has advised
the Fund that it proposes initially to offer the APS of the Fund to the public
at the public offering price set forth on the cover page of this Prospectus,
and to certain dealers at such price less a concession not in excess of $137.50
per share. The sales load the Fund will pay of $250 per share of APS is equal
to 1% of the initial offering price. The Underwriter may allow, and such
dealers may reallow, a discount not in excess of $100 per share to other
dealers. After the initial public offering, the public offering price,
concession and discount may be changed. Investors must pay for any APS
purchased on or before [&nbsp;&nbsp;&nbsp;&nbsp;], 2006.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>54</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>The Underwriter will act in
auctions as a Broker-Dealer as set forth under &#147;The auction&#148; and will be
entitled to fees for services as a Broker-Dealer as set forth therein. The
Underwriter also may provide information to be used in ascertaining the
reference rate.</FONT></P>

<P><FONT SIZE=2>The Fund anticipates that
the Underwriter may from time to time act as a broker and dealer in connection
with the execution of the Fund&#146;s portfolio transactions after it has ceased to
be the principal underwriter of the Fund under the Investment Company Act and,
subject to certain conditions, may act as a broker while it is principal
underwriter.</FONT></P>

<P><FONT SIZE=2>In connection with this
offering, the Underwriter or selected dealers may distribute prospectuses
electronically.</FONT></P>

<P><FONT SIZE=2>The Fund and the Adviser
have agreed to indemnify the Underwriter against certain liabilities, including
liabilities under the Securities Act of 1933.</FONT></P>

<P><A NAME=A017></A><FONT SIZE=5>Custodian, transfer agent and auction agent</FONT></P>

<P><FONT SIZE=2>The Fund&#146;s custodian is The
Bank of New York, Church Street Station, Post Office Box 11258, New York, New
York 10286. The transfer agent and dividend disbursing agent for the Fund&#146;s
common and preferred stock is The Bank of New York, Church Street Station, P.O.
Box 11258, New York, New York 10286. The Fund&#146;s auction agent is The Bank of
New York, Church Street Station, P.O. Box 11258, New York, New York 10286.</FONT></P>

<P><A NAME=A018></A><FONT SIZE=5>Legal opinions</FONT></P>

<P><FONT SIZE=2>Certain legal matters in
connection with the shares of APS offered hereby will be passed upon by Mayer,
Brown, Rowe &amp; Maw LLP, Chicago, Illinois, and for the Underwriter by
Skadden, Arps, Slate, Meagher &amp; Flom LLP, Chicago, Illinois. DLA Piper
Rudnick Gray Cary US LLP, Baltimore, Maryland, will opine on certain matters
pertaining to Maryland law. Mayer, Brown, Rowe &amp; Maw LLP and Skadden, Arps,
Slate, Meagher &amp; Flom LLP may rely as to certain matters of Maryland law on
the opinion of DLA Piper Rudnick Gray Cary US LLP.</FONT></P>

<P><A NAME=A019></A><FONT SIZE=5>Available information</FONT></P>

<P><FONT SIZE=2>The Fund is subject to the
informational requirements of the Exchange Act and the Investment Company Act
and is required to file reports, proxy statements and other information with
the SEC. These documents can be inspected and copied for a fee at the SEC&#146;s
public reference room, 100 F Street, N.E., Washington, D.C. 20549, and at the
SEC&#146;s Northeast Regional Office, 233 Broadway, New York, New York 10279.
Reports, proxy statements and other information about the Fund can be inspected
at the offices of the New York Stock Exchange, 20 Broad Street, New York, New
York 10005.</FONT></P>

<P><FONT SIZE=2>This Prospectus does not
contain all of the information in the Fund&#146;s registration statement, including
amendments, exhibits, and schedules. Statements in this Prospectus about the
contents of any contact or other document are not necessarily complete and in
each instance reference is made to the copy of the contact or other document
filed as an exhibit to the registration statement, each such statement being
qualified in all respects by this reference.</FONT></P>

<P><FONT SIZE=2>Additional information about
the Fund and the APS can be found in the Fund&#146;s registration statement
(including amendments, exhibits, and schedules) on Form N-2 filed with the SEC.
The SEC maintains a web site (http://www.sec.gov) that contains the Fund&#146;s registration
statement, other documents incorporated by reference, and other information the
Fund has filed electronically with the SEC, including proxy statements and
reports filed under the Exchange Act.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2><B>55</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><A NAME=A020></A><FONT SIZE=5>Privacy principles of the Fund</FONT></P>

<P><FONT SIZE=2>The Fund is committed to
maintaining the privacy of its shareholders and to safeguarding their
non-public personal information. The following information is provided to help
you understand what personal information the Fund collects, how the Fund
protects that information and why, in certain cases, the Fund may share
information with select other parties.</FONT></P>

<P><FONT SIZE=2>Generally, the Fund does not
receive any non-public personal information relating to its shareholders,
although certain non-public personal information of its shareholders may become
available to the Fund. The Fund does not disclose any non-public personal
information about its shareholders or former shareholders to anyone, except as
permitted by law or as is necessary in order to service shareholder accounts (for
example, to a transfer agent or third party administrator).</FONT></P>

<P><FONT SIZE=2>The Fund restricts access to
non-public personal information about its shareholders to employees of the
Fund&#146;s investment adviser and its affiliates with a legitimate business need
for the information. The Fund maintains physical, electronic and procedural
safeguards designed to protect the non-public personal information of its
shareholders.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>56</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P><A NAME=A021></A><FONT SIZE=5>Table
of contents for the<BR>Statement of Additional Information</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="85%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="10%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE="1"><B>Page</B> </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="35%" NOSHADE  color=black ALIGN=right>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B001">Investment
  Policies, Techniques and Restrictions</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B002">Management
  of the Fund</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B003">Portfolio
  Transactions and Brokerage</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>14</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B004">Additional
  Information Concerning the Auctions for APS</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>16</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B005">Repurchase
  of Common Stock</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B006">Dividend
  Reinvestment Plan</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B007">U.S.
  Federal Income Tax Matters</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B008">Experts</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>30</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B009">Additional
  Information</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>31</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2><A HREF="#B010">Financial
  Statements</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>31</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P STYLE='MARGIN-LEFT:8.65PT;TEXT-INDENT:-8.65PT'><FONT SIZE=2><A HREF="#B011">Appendix
  A: Form of Articles Supplementary Creating Series M, Series W and Series F of
  Auction Preferred Stock</A></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>A-1</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2><B>57</B></FONT></P>
</TD>
</TR>
</TABLE>
<BR>
<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2>[This Page Intentionally Left Blank]</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px" >
<TD WIDTH="100%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE  ALIGN=CENTER>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2><IMG SRC="c42214001.jpg" ALT="(GRAPHIC)"></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2 COLOR=RED>The information in this Statement of
Additional Information is not complete and may be changed. A registration
statement relating to these securities has been filed with the Securities and
Exchange Commission. We may not sell these securities until the registration
statement is effective. This Statement of Additional Information is not a
prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2 COLOR=RED>Subject to Completion, dated
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;, 2006</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>STATEMENT OF ADDITIONAL INFORMATION</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>DNP Select Income Fund Inc.<BR>
55 East Monroe Street, Suite 3600<BR>
Chicago, Illinois 60603<BR>
(312) 368-5510</B></FONT></P>

<P><FONT SIZE=2><B>This Statement of Additional Information
(&#147;SAI&#148;) is not a prospectus and is authorized for distribution to prospective
investors only if preceded or accompanied by the prospectus of DNP Select
Income Fund Inc., dated &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006 as supplemented from time to time, which is incorporated herein by
reference. This SAI should be read in conjunction with such prospectus, a copy
of which may be obtained without charge by contacting your financial
intermediary or calling the Fund at (888) 878-7845.</B></FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><FONT SIZE=2><B>TABLE OF CONTENTS</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH=680 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH=41 VALIGN=TOP>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Investment
  Policies, Techniques and Restrictions</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>2</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Management
  of the Fund</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>5</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Portfolio
  Transactions and Brokerage</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>14</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Additional
  Information Concerning the Auctions for APS</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>16</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Repurchase
  of Common Stock</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>21</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Dividend
  Reinvestment Plan</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>23</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>U.S. Federal
  Income Tax Matters</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>24</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Experts</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>30</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Additional
  Information</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Financial
  Statements</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>31</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Appendix A:
  Articles Supplementary Creating Series M, Series W and Series F of Auction
  Preferred Stock</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=RIGHT><FONT SIZE=2>A-1</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=CENTER>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalized
terms used in this SAI and not otherwise defined have the meanings given them
in the Fund&#146;s prospectus.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=B001><FONT SIZE=2><B>INVESTMENT POLICIES,
TECHNIQUES AND RESTRICTIONS</B></FONT></A></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s primary investment objectives are current income and long-term growth of
income. Capital appreciation is a secondary objective. The Fund seeks to
achieve its investment objectives by investing primarily in a diversified
portfolio of equity and fixed income securities of companies in the public
utilities industry. Under normal conditions, more than 65% of the Fund&#146;s total
assets will be invested in securities of public utility companies engaged in
the production, transmission or distribution of electric energy, gas or
telephone services. The Fund&#146;s investment objectives and its policy of
investing, under normal market conditions, more than 65% of the Fund&#146;s total
assets in securities of public utility companies are fundamental policies that
may be changed only with the approval of the holders of a &#147;majority&#148; (as
defined in the Investment Company Act) of the outstanding shares of the Fund&#146;s
common stock and preferred stock voting together as a single class.</FONT></P>

<P><FONT SIZE=2><B>Fundamental Investment Restrictions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following are fundamental investment restrictions of the Fund that may be
changed only with approval of the holders of a &#147;majority&#148; (as defined in the
Investment Company Act) of the outstanding shares of the Fund&#146;s common stock
and preferred stock voting together as a single class:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>1.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not invest more than 25% of its total assets (valued at the time of
  investment) in securities of companies engaged principally in any one
  industry other than the public utilities industry, which includes companies
  engaged in the production, transmission or distribution of electric energy or
  gas or in telephone services, except that this restriction does not apply to
  securities issued or guaranteed by the U.S. government or its agencies or
  instrumentalities.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>2.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>invest more
  than 5% of its total assets (valued at the time of the investment) in the
  securities of any one issuer, except that this restriction does not apply to
  U.S. government securities; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>acquire more
  than 10% of the outstanding voting securities of any one issuer (at the time
  of acquisition);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>except that
  up to 25% of the Fund&#146;s total assets (at the time of investment) may be
  invested without regard to the limitations set forth in this restriction.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>3.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  borrow money on a secured or unsecured basis for any purpose of the Fund in
  an aggregate amount not exceeding 15% of the value of the Fund&#146;s total assets
  at the time of any such borrowing (exclusive of all obligations on amounts
  held as collateral for securities loaned to other persons to the extent that
  such obligations are secured by assets of at least equivalent value).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>4.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not pledge, mortgage or hypothecate its assets, except to secure indebtedness
  permitted by restriction 3 above. (The deposit in escrow of securities in
  connection with the writing of put and call options, collateralized loans of
  securities and collateral arrangements with respect to margin requirements
  for futures transactions and with respect to segregation of securities in
  connection with forward contracts are not deemed to be pledges or
  hypothecations for this purpose.)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>5.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  make loans of securities to other persons to the extent of not more than 33
   1/3% of its total assets (valued at the time of the making of loans), and may
  invest without limitation in short-term obligations and publicly distributed
  obligations.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>6.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not underwrite the distribution of securities of other issuers, although it
  may acquire securities that, in the event of a resale, might be required to
  be registered under the Securities Act of 1933 because the Fund could be
  regarded as an underwriter as defined in that act with respect to the resale.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>7.</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not purchase or sell real estate or any interest therein, except that the
  Fund may invest in securities secured by real estate or interests therein,
  such as mortgage pass-throughs, pay-throughs, collateralized mortgage
  obligations, and securities issued by companies (including partnerships and
  real estate investment trusts) that invest in real estate or interests
  therein.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>8.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  acquire securities of other investment companies to the extent (at the
  acquisition) of (i) not more than 3% of the outstanding voting stock of any
  one investment company, (ii) not more than 5% of the assets of the Fund in
  any one investment company and (iii) not more than 10% of the assets of the
  Fund in all investment companies (exclusive in each case of securities
  received as a dividend or as a result of a merger, consolidation or other
  plan of reorganization).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>9.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not invest for the purpose of exercising control over or management of any
  company.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>10.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not purchase securities on margin, or make short sales of securities, except
  the use of short-term credit necessary for the clearance of purchases and
  sales of portfolio securities, but it may make margin deposits in connection
  with transactions in options, futures and options on futures.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>11.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not purchase or sell commodities or commodity contracts, except that it may
  enter into (i) stock index futures transactions, interest rate futures
  transactions and options on such future transactions and (ii) forward
  contracts on foreign currencies to the extent permitted by applicable law.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>12.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>The Fund may
  not issue any security senior to its common stock, except that the Fund may
  borrow money subject to investment restriction 3 and except as permitted by
  the Fund&#146;s charter.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of the twelfth investment restriction, no amendment to the Fund&#146;s
charter that would alter or amend the Fund&#146;s authority to issue senior
securities will be effective unless such amendment is approved by the holders
of a &#147;majority&#148; (as defined in the Investment Company Act) of the outstanding
shares of the Fund&#146;s common stock and preferred stock voting together as a
single class.</FONT></P>

<P><FONT SIZE=2><B>Additional Nonfundamental Restrictions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may not (i) invest in securities subject to legal or contractual
restrictions on resale, if, as a result of such investment, more than 10% of
the Fund&#146;s total assets would be invested in such securities, or (ii) acquire
5% or more of the outstanding voting securities of a public utility company.</FONT></P>

<P><FONT SIZE=2><B>Other Significant Investment Policies</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following are other significant investment policies and restrictions of the
Fund, which may be changed by the board of directors without the approval of
the Fund&#146;s shareholders.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed
Income Securities. </B>The Fund purchases a fixed income
security only if, at the time of purchase, it is (i) rated investment grade by
at least two of the following three nationally recognized statistical rating
organizations: Moody&#146;s, S&amp;P and Fitch, Inc. or (ii) determined by the
Fund&#146;s investment adviser to be of investment grade and not rated below investment
grade by any of the aforementioned rating services. A fixed income security
rated investment grade has a rating of BBB- or better by Fitch, Baa3 or better
by Moody&#146;s, or BBB- or better by S&amp;P. In making its determination that a
fixed income security is investment grade, the Fund&#146;s investment adviser will
use the standards used by a nationally recognized statistical rating
organization.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Rating
Agency Guidelines. </B>The Fund&#146;s preferred stock is
currently rated by Moody&#146;s and S&amp;P, nationally recognized statistical
rating organizations, which issue ratings for various securities reflecting the
perceived cred-itworthiness of those securities. The Fund intends that, so long
as shares of its preferred stock are outstanding, the composition of its portfolio
will reflect guidelines established by the foregoing rating organizations in
connection with the Fund&#146;s receipt of the highest rating for its preferred
stock from at least two of such rating organizations.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Options
and Futures Transactions. </B>The Fund may seek to
increase its current return by writing covered options. In addition, through
the writing and purchase of options and the purchase and sale of futures
contracts and related options, the Fund may at times seek to hedge against a
decline in the value of securities owned by it or an increase in the price of
securities which it plans to purchase. However, for so long as shares of the
Fund&#146;s preferred stock are rated either by Moody&#146;s or S&amp;P, the Fund will
not purchase or sell futures contracts or related options or engage in other
hedging transactions unless Moody&#146;s or S&amp;P, as the case may be, advises the
Fund that such action or actions will not adversely affect its then-current
rating of the Fund&#146;s preferred stock.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Swap
and Swaption Transactions. </B>The Fund may utilize
interest rate and credit swaps and swaptions, subject to the following
restrictions: (i) swaps and swaptions must be U.S. dollar denominated and used
for hedg-</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>ing purposes
only; (ii) no more than 5% of the Fund&#146;s total assets, at the time of purchase,
may be invested in time premiums paid for swaptions; (iii) the terms of all
swaps and swaptions must conform to the standards of the ISDA Master Agreement
published by the International Swaps and Derivatives Association, Inc.; and
(iv) the counterparty must be a bank or broker-dealer firm regulated under the
laws of the United States that is (A) on a list approved by the board of
directors, (B) with capital of at least $100 million and (C) rated investment
grade by both S&amp;P and Moody&#146;s.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Credit
Derivatives. </B>The market value of the Fund&#146;s
investments in credit derivatives and/or premiums paid therefor as a buyer of
credit protection will not exceed 10% of the Fund&#146;s total assets and the
notional value of the credit exposure to which the Fund is subject when it
sells credit derivatives will not exceed 33 1/3%
of the Fund&#146;s total assets.</FONT></P>

<P><FONT SIZE=2><B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Foreign
securities. </B>The Fund may not invest in securities
issued by public utilities located outside the United States if, as a result of
such investment, 15% or more of the Fund&#146;s total assets would be invested in
such securities.</FONT></P>

<P><FONT SIZE=2><B>Percentage Restrictions</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s investment policies, techniques and restrictions that are set forth in
the Prospectus or this Statement of Additional Information may contain
percentage restrictions with respect to the amount of the Fund&#146;s assets that
may be invested in a given manner. If any such percentage restriction is
adhered to at the time a transaction is effected, later changes in percentages
resulting from changes in value or in the number of outstanding securities of
an issuer will not be considered a violation.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=B002><FONT SIZE=2><B>MANAGEMENT OF THE
FUND</B></FONT></A></P>

<P><FONT SIZE=2><B>Directors and Officers</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Set
forth below are the names and certain biographical information about the
directors and officers of the Fund. Except as indicated in the table, directors
are elected by the holders of the Fund&#146;s common stock. The officers are elected
at the annual meeting of the board of directors of the Fund.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="19%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund,<BR>
  Term of<BR>
  Office and<BR>
  Length of<BR>
  Time Served</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of<BR>
  Portfolios in<BR>
  Fund<BR>
  Complex<BR>
  Overseen<BR>
  by Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other
  Directorships<BR>
  Held by Director/Officer</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Independent Directors</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Stewart E.
  Conner<BR>
  (3)(4)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 64</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since April 2004. Term expires in 2007.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Attorney,
  Wyatt Tarrant &amp; Combs LLP since 1966 (Chairman, Executive Committee
  2000&#150;2004, Managing Partner 1988&#150;2000)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Connie K.
  Duckworth<BR>
  (2)(4)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 51</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since April 2002. Term expires in 2008.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Founder,
  Chairman, and President, Arzu, Inc. (non- profit corporation created to
  assist Afghan women through sale of homemade rugs) since August 2003; Member,
  Eight Wings Enterprises LLC (investor in early stage businesses) 2002&#150;2004;
  Advisory Director, Goldman, Sachs &amp; Company, December 2000&#150;December 2001
  (Managing Director, December 1996&#150;December 2000, Partner 1990&#150;1996, Chief
  Operating Officer of Firmwide Diversity Committee 1990&#150;1995)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director,
  Smurfit-Stone Container Corporation (packaging manufacturer); Trustee,
  Northwestern Mutual Life Insurance Company; Director and Vice Chairman,
  Evanston Northwestern Health Care Corporation; Member, Board of Overseers,
  Wharton School of the University of Pennsylvania</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Robert J.
  Genetski<BR>
  (2)(5)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 63</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since April 2001. Term expires in 2007.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>President,
  Robert Genetski &amp; Associates, Inc. (economic and financial consulting
  firm) since 1991; Senior Managing Director, Chicago Capital, Inc. Inc.
  (financial services firm) 1995&#150;2001; former Senior Vice President and Chief
  Economist, Harris Trust &amp; Savings Bank; author of several books; regular
  contributor to the <I>Nikkei Financial Daily</I></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director,
  Midwest Banc Holdings Inc.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="19%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund,<BR>
  Term of<BR>
  Office and<BR>
  Length of<BR>
  Time Served</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of<BR>
  Portfolios in<BR>
  Fund<BR>
  Complex<BR>
  Overseen<BR>
  by Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other
  Directorships<BR>
  Held by Director/Officer</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Francis E.
  Jeffries (1)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 75</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since January 1987. Term expires in 2007. Chairman since May 2005 (Vice
  Chairman April 2004&#150;May 2005).</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chairman of
  the Board, DTF Tax-Free Income Inc. and Duff &amp; Phelps Utility and
  Corporate Bond Trust Inc. (the &#147;DTF and DUC Funds&#148;) since September 1991 and
  November 1992, respectively (President, January 2000&#150;February 2004),
  Chairman, Phoenix Investment Partners, Ltd. November 1995&#150;May 1997; Chairman
  and Chief Executive Officer, Duff &amp; Phelps Corporation, June
  1993&#150;November 1995 (President and Chief Executive Officer, January 1992&#150;June
  1993); Chairman of the Board, Duff &amp; Phelps Investment Management Co.
  1988&#150;1993</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>54</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Nancy
  Lampton<BR>
  (3)(4)(5)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 63</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since October 1994. Term expires in 2006. Vice Chairman since February 2006.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chairman and
  Chief Executive Officer, Hardscuffle Inc. (insurance holding company) since
  January 2000; Chairman and Chief Executive Officer, American Life and
  Accident Insurance Company of Kentucky since 1971</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director,
  Constellation Energy Group, Inc. (public utility holding company); Advisory
  Board Member, Thorium Power, Inc. (designer of non-proliferative fuel for
  nuclear energy needs)</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="19%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund,<BR>
  Term of<BR>
  Office and<BR>
  Length of<BR>
  Time Served</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of<BR>
  Portfolios in<BR>
  Fund<BR>
  Complex<BR>
  Overseen<BR>
  by Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other
  Directorships<BR>
  Held by Director/Officer</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Christian H.
  Poindexter<BR>
  (2)(3)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 67</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since May 2003. Term expires in 2006.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Retired
  Chairman and Chief Executive Officer, Constellation Energy Group, Inc.
  (public utility holding company) (Executive Committee Chairman, July
  2002&#150;March 2003; Chairman of the Board, April 1999&#150;July 2002; Chief Executive
  Officer, April 1999&#150;October 2001; President, April 1999&#150;October 2000);
  Chairman, Baltimore Gas and Electric Company, January 1993&#150;July 2002 (Chief
  Executive Officer, January 1993&#150;July 2000; President, March 1998&#150;October
  2000; Director, 1988&#150;2003)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director,
  Mercantile Bankshares Corporation (bank holding company); Director, The
  Baltimore Life Insurance Company; Member, Finance and Investment Committee,
  National Executive Board, Boy Scouts of America; Chairman, Investment
  Committee, U.S. Naval Academy Foundation</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Carl F.
  Pollard (1)(2)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 67</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since April 2002. Term expires in 2008.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Owner,
  Hermitage Farm L.L.C. (thoroughbred breeding) since January 1995; Chairman,
  Columbia Healthcare Corporation 1993&#150;1994; Chairman and Chief Executive
  Officer, Galen Health Care, Inc. March&#150;August 1993; President and Chief
  Operating Officer, Humana Inc. 1991&#150;1993 (previously Senior Executive Vice
  President, Executive Vice President and Chief Financial Officer)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chairman of
  the Board and Director, Churchill Downs Incorporated</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="25%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="13%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="19%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="9%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="22%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund,<BR>
  Term of<BR>
  Office and<BR>
  Length of<BR>
  Time Served</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number
  of<BR>
  Portfolios in<BR>
  Fund<BR>
  Complex<BR>
  Overseen<BR>
  by Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other
  Directorships<BR>
  Held by Director/Officer</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>

<TR>
<TD VALIGN=TOP COLSPAN=9>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>David J.
  Vitale (1)(4)<BR>
  c/o Duff &amp; Phelps Investment<BR>&nbsp;&nbsp;&nbsp;&nbsp; Management Co.<BR>
  55 East Monroe Street,<BR>
  Suite 3600<BR>
  Chicago, Illinois 60603<BR>
  Age: 59</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  since April 2000. Term expires in 2006.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chief Administrative
  Officer, Chicago Public Schools since April 2003; Private investor November
  2002&#150;April 2003; President and Chief Executive Officer, Board of Trade of the
  City of Chicago, Inc., March 2001&#150;November 2002; Retired executive 1999&#150;2001;
  Vice Chairman and Director, Bank One Corporation, 1998&#150;1999; Vice Chairman
  and Director, First Chicago NBD Corporation, and President, The First
  National Bank of Chicago, 1995&#150;1998; Vice Chairman, First Chicago Corporation
  and The First National Bank of Chicago, 1993&#150;1998 (Director, 1992&#150;1998;
  Executive Vice President, 1986&#150;1993)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>3</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director,
  UAL Corporation (airline holding company), ISO New England Inc. (not for
  profit independent system operator of New England&#146;s electricity supply),
  Ariel Capital Management, Inc., Ark Investment Management and Wheels, Inc.
  (automobile fleet management)</FONT></P>
</TD>
</TR>
</TABLE>

<BR>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<HR SIZE=1 WIDTH="20%" NOSHADE COLOR=GRAY ALIGN=LEFT>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Member of
  the executive committee of the board of directors, which has authority, with
  certain exceptions, to exercise the powers of the board of directors between
  board meetings. The executive committee did not meet during 2005.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Member of
  the audit committee of the board of directors, which makes recommendations
  regarding the selection of the Fund&#146;s independent public accountants and
  meets with representatives of the accountants to determine the scope of and
  review the results of each audit. The audit committee met twice during 2005.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Member of
  the nominating and governance committee of the board of directors, which
  selects nominees for election as directors, recommends individuals to be
  appointed by the board as Fund officers and members of board committees and
  makes recommendations regarding other Fund governance and board
  administration matters. The nominating and governance committee met twice
  during 2005. The committee will consider nominees recommended by
  shareholders. Shareholders wishing to recommend candidates to the committee
  should submit such recommendations to the Secretary of the Fund, 55 East
  Monroe Street, Suite 3600, Chicago, Illinois 60603. The Secretary of the Fund
  will forward the recommendations to the nominating and governance committee
  for consideration.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(4)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Member of
  the contracts committee of the board of directors, which makes
  recommendations regarding the Fund&#146;s contractual arrangements for investment
  management and administrative services, including the terms and conditions of
  such contracts. The contracts committee met twice during 2005.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(5)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Director
  elected by holders of preferred stock.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="19%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Term of
  Office and<BR>
  Length of Time Served</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B><I>Officers of the Fund</I></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Nathan I.
  Partain<BR>
  55 East Monroe Street<BR>
  Chicago, Illinois 60603<BR>
  Age: 49</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>President
  and Chief Executive Officer</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>President
  and Chief Executive Officer since February 2001 (Chief Investment Officer
  since January 1998, Executive Vice President April 1998&#150;February 2001, Senior
  Vice President January 1997&#150;April 1998, Assistant Secretary January
  1997&#150;February 2001).</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>President
  and Chief Executive Officer, the DTF and DUC Funds since February 2004;
  President, Duff &amp; Phelps Investment Management Co. since April 2005
  (Executive Vice President January 1997&#150;April 2005); Director of Utility
  Research, Phoenix Investment Partners, Ltd., 1989&#150;1996 (Director of Equity
  Research, 1993&#150;1996 and Director of Fixed Income Research, 1993); Director,
  Otter Tail Corporation (1993&#150;present)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>T. Brooks
  Beittel<BR>
  55 East Monroe Street<BR>
  Chicago, Illinois 60603<BR>
  Age: 56</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Secretary
  and Senior Vice President</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Secretary
  and Senior Vice President since January 1995 (Treasurer January
  1995&#150;September 2002).</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice
  President, Duff &amp; Phelps Investment Management Co. since 1993 (Vice
  President 1987&#150;1993)</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Michael
  Schatt<BR>
  55 East Monroe Street<BR>
  Chicago, Illinois 60603<BR>
  Age: 59</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice
  President</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice
  President since April 1998 (Vice President January 1997&#150;April 1998.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice
  President, Duff &amp; Phelps Investment Management Co. since January 1997;
  Managing Director, Phoenix Investment Partners, Ltd., 1994&#150;1996</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Joseph C.
  Curry, Jr.<BR>
  Hilliard Lyons Center<BR>
  Louisville, Kentucky<BR>
  40202<BR>
  Age: 61</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Treasurer
  and Vice President</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Treasurer
  since September 2002; Vice President since April 1988.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Senior Vice President,
  J.J.B. Hilliard, W.L. Lyons, Inc. since 1994 (Vice President 1982&#150;1994); Vice
  President, Hilliard Lyons Trust Company; President, Hilliard-Lyons Government
  Fund, Inc.; Vice President and Assistant Treasurer, Senbanc Fund</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="99%">
<TR style="font-size:1px">
<TD WIDTH="19%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=TOP>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1><B>Name, Address<BR>
  and Age</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Position(s)
  Held<BR>
  With the Fund</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Term of
  Office and<BR>
  Length of Time Served</B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Principal
  Occupation(s)<BR>
  During Past 5 Years</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Joyce B.
  Riegel<BR>
  55 East Monroe Street<BR>
  Chicago, Illinois 60603<BR>
  Age: 51</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chief
  Compliance Officer</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chief Compliance
  Officer since February 2004.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Chief
  Compliance Officer, the DTF and DUC Funds since August 2003; Senior Vice
  President and Chief Compliance Officer of Duff and Phelps Investment
  Management since 2004; Vice President and Compliance Officer, Duff &amp; Phelps
  Investment Management Co. 2002&#150;2004; Vice President and Chief Compliance
  Officer, Stein Roe Investment Counsel LLC January 2001&#150;August 2002; Vice
  President and Compliance Officer, Stein Roe &amp; Farnham Incorporated July
  1996&#150;December 2000</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Dianna P.
  Wengler<BR>
  Hilliard Lyons Center<BR>
  Louisville, Kentucky<BR>
  40202<BR>
  Age: 45</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Assistant
  Vice President and Assistant Secretary</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Assistant
  Vice President since April 2004; Assistant Secretary since April 1988.</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Vice
  President, J.J.B. Hilliard, W.L. Lyons, Inc. since 1990; Vice President,
  Hilliard-Lyons Government Fund, Inc.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table provides certain information relating to the equity securities
beneficially owned, as of December 31, 2005, by each director (i) in the Fund
and (ii) on an aggregate basis, in any registered investment companies overseen
by the director within the same family of investment companies as the Fund.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="11%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="24%" COLSPAN="2" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="28%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name of Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Dollar
  Range of Equity Securities<BR>
  in the Fund</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Aggregate
  Dollar Range of Equity<BR>
  Securities in All Funds Overseen<BR>
  or to be Overseen by Director or<BR>
  Nominee in Family of Investment<BR>
  Companies</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2><B><I>Independent Directors</I></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P><FONT SIZE=2>Stewart E.
  Conner</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>$50,001-$100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>$50,001-$100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Connie K.
  Duckworth</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P><FONT SIZE=2>Robert J.
  Genetski</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Francis E.
  Jeffries</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P><FONT SIZE=2>Nancy
  Lampton</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Christian H.
  Poindexter</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P><FONT SIZE=2>Carl F.
  Pollard</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>over $100,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>David J.
  Vitale</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>$10,001-$50,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>$10,001-$50,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD WIDTH=1>
</TD>
<TD WIDTH=21>
</TD>
<TD WIDTH=21>
</TD>
<TD WIDTH=10>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2005, none of the foregoing directors, or their immediate
family members, owned any securities of the Adviser or any person (other than a
registered investment company) directly or indirectly controlling, controlled
by or under common control with the Adviser.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
of December 31, 2005, the officers and directors of the Fund owned in the
aggregate less than 1% of the Fund&#146;s outstanding common stock and none of the
Fund&#146;s outstanding preferred stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table shows the compensation paid by the Fund to the Fund&#146;s current
directors during 2005:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="11%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="52%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="12%" COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="16%" COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="13" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2><B>COMPENSATION TABLE </B>(1)(2)</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=BOTTOM COLSPAN=8>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>

</TR>
<TR>
<TD VALIGN=BOTTOM NOWRAP>
<P><FONT SIZE=1><B>Name of Director</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Aggregate<BR>
  Compensation<BR>
  from the</B><FONT   SIZE=1><B><BR>
  Fund</B></FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Total<BR>
  Compensation from<BR>
  the Fund and the</B><FONT   SIZE=1><B><BR>
  Fund Complex (2)</B></FONT></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2><B><I>Independent Directors</I></B></FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Stewart E.
  Conner</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>42,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>42,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Connie K.
  Duckworth</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>45,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>45,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Robert J.
  Genetski</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>42,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>42,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Francis E.
  Jeffries</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>78,393</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>197,393</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Nancy
  Lampton</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>50,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>76,901</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Christian H.
  Poindexter</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>45,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>45,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Carl F.
  Pollard</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>47,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>47,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>David J.
  Vitale</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>47,000</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>70,901</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT SIZE=1>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  director not affiliated with the Adviser receives an annual fee of $25,000
  (and an additional $5,000 if the director serves as chairman of a committee
  of the board of directors) plus an attendance fee of $2,000 for each meeting
  of the board of directors and $1,500 for each meeting of a committee of the
  board of directors attended in person or by telephone. The chairman of the
  board of directors receives an additional fee of $50,000 annually. Directors
  and officers affiliated with the Adviser or the Administrator receive no
  compensation from the Fund for their services as such. In addition to the
  amounts shown in the table above, all directors and officers who are not
  affiliated with the Adviser or the Administrator are reimbursed for the
  expenses incurred by them in connection with their attendance at a meeting of
  the board of directors or a committee of the board of directors. The Fund
  does not have a pension or retirement plan applicable to directors or
  officers of the Fund.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD HEIGHT=45 VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD HEIGHT=45 VALIGN=TOP>
<P><FONT SIZE=2>The Fund
  Complex includes all funds that are advised by the Adviser or other
  affiliates of Phoenix Investment Partners, Ltd. Mr. Jeffries serves as a
  director or trustee of 53 other funds in the Fund Complex, and each of Ms.
  Lampton and Mr. Vitale serves as a director of two other funds in the Fund
  Complex.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Portfolio Managers</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
may be certain inherent conflicts of interest that arise in connection with the
portfolio managers&#146; management of the Fund&#146;s investments and the investments of
any other accounts they manage. Such conflicts could include aggregation of
orders for all accounts managed by a particular portfolio manager, the
allocation of purchases across all such accounts, the allocation of IPOs and
any soft dollar arrangements that the Adviser may have in place that could
benefit the Fund and/or such other accounts. The Adviser has adopted policies
and procedures designed to address any such conflicts of interest to ensure
that all management time, resources and investment opportunities are allocated
equitably. There have been no material compliance issues with respect to any of
these policies and procedures during the Fund&#146;s most recent fiscal year.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table provides information as of December 31, 2005 regarding the
other accounts besides the Fund that are managed by the portfolio managers of
the Fund identified in the Fund&#146;s prospectus. As noted in the table, portfolio managers
of the Fund may also manage or be members of management teams for other mutual
funds within the Phoenix fund complex or other similar accounts. As of December
31, 2005, the Fund&#146;s portfolio managers did not manage any accounts with
respect to which the advisory fee is based on the performance of the account,
nor do they manage any hedge funds.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="17%" COLSPAN="2" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" COLSPAN="2" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="6%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="7%" VALIGN=BOTTOM>
<P ALIGN=CENTER>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="2%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="2%" COLSPAN="2" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=BOTTOM>
<P ALIGN=RIGHT>&nbsp;</P>
</TD>
<TD WIDTH="3%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
<TD WIDTH="1%" VALIGN=BOTTOM>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Registered Investment<BR>
  Companies (1)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other Pooled Investment<BR>
  Vehicles (2)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Other Accounts (3)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="8" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="9" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name of<BR>
  Portfolio Manager</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of<BR>
  Accounts</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Total
  Assets<BR>
  (in millions)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of<BR>
  Accounts</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Total
  Assets<BR>
  (in millions)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Number of<BR>
  Accounts</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1><B>Total
  Assets<BR>
  (in millions)</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="5" VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Nathan I. Partain</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>14,7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>T. Brooks Beittel</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>495.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Michael Schatt</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>2</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>1,012.6</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>24.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>10</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>234.3</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Deborah A. Jansen</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>14.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Connie M. Luecke</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>14.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>Daniel J. Petrisko</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>480.9</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;8</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P ALIGN=RIGHT><FONT SIZE=2>1,460.5</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Randle L. Smith</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>1</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>$</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>14.7</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>&nbsp;&nbsp;0</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P ALIGN=RIGHT><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=BOTTOM BGCOLOR="#E6E6E6">
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

</TABLE>


<P><HR NOSHADE WIDTH=120 COLOR=GRAY ALIGN=LEFT SIZE=1>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(1)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Registered
  Investment Companies include all open and closed-end mutual funds. For
  Registered Investment Companies, assets represent net assets of all open-end
  investment companies and gross assets of all closed-end investment companies.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(2)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Other Pooled
  Investment Vehicles include, but are not limited to, securities of issuers
  exempt from registration under Section 3(c) of the 1940 Act, such as private
  placements and hedge funds.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(3)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Other
  Accounts include, but are not limited to, individual managed accounts,
  separate accounts, institutional accounts, pension funds and collateralized
  bond obligations.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following is a description of the compensation structure, as of December 31,
2005, of the Fund&#146;s portfolio managers identified in the Fund&#146;s prospectus. The
Fund&#146;s portfolio managers receive a competitive base salary, an incentive bonus
opportunity and a benefits package.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
portfolio manager is paid a fixed base salary, which is determined by Phoenix
Investment Partners and is designed to be competitive in light of the
individual&#146;s experience and responsibilities. The management of Phoenix
Investment Partners uses compensation survey results of investment industry
compensation conducted by an independent third party in evaluating competitive
market compensation for its investment management professionals.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
incentive bonus package for portfolio managers is based upon how well the
individual manager meets or exceeds assigned goals and a subjective assessment
of contribution to the team effort. Their incentive bonus also reflects a
performance component. The performance component is based in part on achieving
and/or exceeding income targets underlying the Fund&#146;s ability to pay common
stock dividends, and in part on performance relative to a composite of the
S&amp;P Utilities Index and the Lehman Brothers Utility Bond Index, reflecting
the stock and bond ratio of the Fund. The performance component is further
adjusted to reward investment personnel for managing within the stated
framework and for not taking unnecessary risks. This ensures that investment
personnel will remain focused on managing and acquiring securities that
correspond to the Fund&#146;s mandate and risk profile. It also avoids the
temptation for portfolio managers to take on more risk and unnecessary exposure
to chase performance for personal gain.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Incentive
bonus compensation of the Fund&#146;s portfolio managers is currently comprised of
two components: 75% of the incentive bonus is based on the pre-tax performance
of the Fund, as measured by earnings per share and total return over a one-year
period, and 25% of the incentive bonus is based in the overall pre-tax
profitability and investment return of PNX, the Adviser&#146;s parent company, over
a one-year period. For the year 2005, the Fund&#146;s portfolio managers have been
guaranteed that they will receive no less than 80% of the incentive bonus
available under the above formula. The portfolio managers&#146; incentive bonus
compensation is not based on the value of assets held in the Fund&#146;s portfolio,
except to the extent that the level of assets in the Fund&#146;s portfolio affects
the advisory fee received by the Adviser, and thus indirectly the profitability
of PNX.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Finally,
portfolio managers may also receive PNX stock options and/or be granted PNX
restricted stock at the direction of the PNX board of directors. To date no
portfolio manager of the Fund has received awards under the PNX restricted
stock units long-term incentive plan.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Highly
compensated individuals are eligible to participate in a long-term incentive
plan to defer their compensation and realize tax benefits. Compensation under
the long-term incentive plan is payable in restricted stock units of PNX, which
vest over three years.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Portfolio
managers are also eligible to participate in broad-based plans offered
generally to the firm&#146;s employees, including broad-based retirement, 401(k),
health and other employee benefit plans.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following table sets forth the dollar range of equity securities in the Fund
beneficially owned, as of December 31, 2005, by each of the portfolio managers
identified in the Fund&#146;s prospectus.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="70%">
<TR style="font-size:1px" >
<TD WIDTH=336 COLSPAN="2" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH=171 VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1><B>Name of Portfolio Manager</B></FONT></P>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=1><B>Dollar
  Range of<BR>
  Equity Securities in the Fund</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=BOTTOM>
<HR SIZE=1 WIDTH="40%" NOSHADE COLOR=BLACK ALIGN=LEFT>
</TD>
<TD VALIGN=BOTTOM>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>T. Brooks
  Beittel</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>None</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Deborah A.
  Jansen</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>None</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Connie M.
  Luecke</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>$1-$10,000</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Nathan I.
  Partain</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>$100,000-$500,000</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Daniel J.
  Petrisko</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>None</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Michael
  Schatt
</FONT></P>
</TD>
<TD VALIGN=TOP>
<P ALIGN=CENTER><FONT SIZE=2>$10,001-$50,000</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="2" VALIGN=TOP BGCOLOR="#E6E6E6">
<P><FONT SIZE=2>Randle L.
  Smith</FONT></P>
</TD>
<TD VALIGN=TOP BGCOLOR="#E6E6E6">
<P ALIGN=CENTER><FONT SIZE=2>None</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2><B>Proxy Voting Policies</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund has adopted proxy voting policies and procedures. The following is a
summary description of those policies and procedures, the full text of which is
available at the Fund&#146;s website at http://www.dnpselectincome.com.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to the right of the board of directors to give the Adviser written instructions
as to the voting or non-voting of proxies on any matter presenting an actual or
perceived conflict of interest as described below, the Fund has delegated the
voting of proxies with respect to securities owned by it to the Adviser. The
Adviser may delegate its proxy voting responsibilities to a proxy committee
established from time to time by the Adviser and may engage one or more
qualified, independent organizations to vote proxies on behalf of the Fund,
subject in each case to compliance with these policies and procedures.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It
is the intention of the Fund to exercise stock ownership rights in portfolio
holdings in a manner that is reasonably anticipated to further the best
economic interests of shareholders of the Fund. Accordingly, the Fund or its
delegate(s) endeavors to analyze and vote all proxies that are considered
likely to have financial implications, and, where appropriate, to participate
in corporate governance, shareholder proposals, management communications and
legal proceedings.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Adviser will generally vote in favor of management recommendations on routine
matters. The Adviser will analyze and vote on non-routine matters, including the
adoption of anti-takeover measures, proxy contests for control, contested
elections of directors, corporate governance matters and executive compensation
matters, on a case-by-case basis, taking into account factors appropriate to
each such matter. The Adviser will generally vote against shareholder proposals
on social issues, except where the Adviser determines that a different position
would be in the clear economic interests of the Fund and its shareholders. The
Adviser may abstain from voting</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>when it
concludes that the effect on shareholders&#146; economic interests or the value of
the portfolio holding is indeterminable or insignificant.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
exercising its voting discretion, the Adviser will seek to avoid any actual or
perceived conflicts of interest between the interests of Fund shareholders, on
the one hand, and those of the Adviser or any affiliated person of the Fund or
the Adviser, on the other hand. The Adviser will notify the board of directors
of the Fund promptly after becoming aware that any actual or potential conflict
of interest exists, indicating how the Adviser proposes to vote on the matter
and its reasons for doing so. The board of directors may decide to (i) vote
pursuant to the recommendation of the delegate, (ii) abstain from voting or
(iii) rely on the recommendations of an established, independent third party
with qualifications to vote proxies, such as Institutional Shareholder
Services. The Adviser may not waive any conflict of interest or vote any
conflicted proxies without the prior written approval of the board of directors
or its duly authorized representative.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Information
on how proxies relating to the Fund&#146;s voting securities were voted (if any) by
the Adviser during the most recent 12-month period ended June 30th is
available, without charge, upon request, by calling (800) 699-1236 and on the
website of the SEC at http://www.sec.gov.</FONT></P>

<P><FONT SIZE=2><B>Code of Ethics</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
of the Fund and the Adviser has adopted a Code of Ethics under Rule 17j-1 of
the Investment Company Act. The codes impose significant restrictions on the
ability of personnel subject to the codes to engage in personal securities
transactions. Among other things, the codes generally prohibit covered
personnel from knowingly buying or selling securities (except for mutual funds,
U.S. government securities and money market instruments) that are being
purchased, sold or considered for purchase or sale by the Fund unless the
proposed purchases are approved in advance by the Adviser&#146;s compliance officer.
The codes also contain certain reporting requirements and compliance
procedures. The codes can be reviewed and copied at the Public Reference Room
of the SEC in Washington, D.C. Information on the operation of the Public
Reference Room may be obtained by calling the SEC at (202) 551-8090. The codes
are also available at the EDGAR Database on the SEC&#146;s Internet site at
http://www.sec.gov and on the Fund&#146;s Internet site at
http://www.dnpselectincome.com. Copies of the codes may also be obtained, after
paying a duplicating fee, by electronic request at the following email address:
publicinfo@sec.gov, or by writing the SEC&#146;s Public Reference Section,
Washington, D.C. 20549-0102. The SEC file number for documents filed by the
Fund under the Investment Company Act is 811-4915.</FONT></P>

<P ALIGN=CENTER><A NAME=B003></A><FONT SIZE=2><B>PORTFOLIO
TRANSACTIONS AND BROKERAGE</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Decisions
concerning the execution of portfolio security transactions, including the
selection of the market and the executing firm, are made by the Adviser. The
Adviser is also responsible for the execution of transactions for all other
accounts managed by it. The Adviser places the portfolio security transactions
of the Fund and of all other accounts managed by it for execution with many
firms. The Adviser uses its best efforts to obtain execution of portfolio
security transactions at prices which are advantageous to the Fund and at
reasonably competitive spreads or (when a disclosed commission is being
charged) at reasonably competitive commission rates. In seeking such execution,
the Adviser will use its best judgment in evaluating the terms of a
transaction, and will give consideration to various relevant factors, including
without limitation the full range and quality of the executing firm&#146;s services,
the value of the brokerage and research services provided, the responsiveness
of the firm to the Adviser, the size and type of the transaction, the nature
and character of the market for the security, the confidentiality, speed and
certainty of effective execution required for the transaction, the general
execution and operational capabilities of the executing firm, the reputation,
reliability, experience and financial condition of the firm, the value and
quality of the services rendered by the firm in this and other transactions,
and the reasonableness of the spread or commission, if any.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transactions
on stock exchanges and other agency transactions involve the payment of
negotiated brokerage commissions. Such commissions vary among different
broker-dealer firms, and a particular broker-dealer may charge different
commissions according to such factors as the difficulty and size of the
transaction and the volume of business done with such broker-dealer.
Transactions in foreign securities often involve the payment of brokerage
commissions, which may be higher than those in the United States. There is
generally no stated com-</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>mission in the
case of securities traded in the over-the-counter markets, but the price paid
or received usually includes an undisclosed dealer markup or markdown. In an
underwritten offering the price paid often includes a disclosed fixed
commission or discount retained by the underwriter or dealer.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Fixed-income
obligations which may be purchased and sold by the Fund are generally traded in
the over-the-counter market on a net basis (<I>i.e.</I>,
without commission) through broker-dealers or banks acting for their own
account rather than as brokers, or otherwise involve transactions directly with
the issuers of such obligations. The Fund may also purchase fixed-income and
other securities from underwriters, the cost of which may include undisclosed
fees and concessions to the underwriters.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
spreads or commissions paid on portfolio security transactions will, in the
judgment of the Adviser, be reasonable in relation to the value of the services
provided, commissions exceeding those which another firm might charge may be
paid to broker-dealers who were selected to execute transactions on behalf of
the Adviser&#146;s clients in part for providing brokerage and research services to
the Adviser.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
selecting brokers or dealers to execute portfolio transactions and in
evaluating the best net price and execution available, the Adviser is
authorized to consider &#147;brokerage and research services&#148; (as those terms are
defined in Section 28(e) of the Securities Exchange Act of 1934), statistical
quotations, specifically the quotations necessary to determine the Fund&#146;s net
asset value, and other information provided to the Fund and/or to the Adviser
(or their affiliates). The Adviser is also authorized to cause the Fund to pay
to a broker or dealer who provides such brokerage and research services a
commission for executing a portfolio transaction which is in excess of the
amount of commission another broker or dealer would have charged for effecting
that transaction. The Adviser must determine in good faith, however, that such
commission was reasonable in relation to the value of the brokerage and
research services provided, viewed in terms of that particular transaction or
in terms of all the accounts over which the Adviser exercises investment
discretion. It is possible that certain of the services received by the Adviser
attributable to a particular transaction will benefit one or more other
accounts for which investment discretion is exercised by the Adviser.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the Fund nor the Adviser, during the last fiscal year, pursuant to an agreement
or understanding with a broker or otherwise through an internal allocation
procedure, directed the Fund&#146;s brokerage transactions to a broker or brokers
because of research services.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities
considered as investments for the Fund may also be appropriate for other
investment accounts managed by the Adviser or its affiliates. Whenever
decisions are made to buy or sell securities by the Fund and one or more of
such other accounts simultaneously, the Adviser will allocate the security
transactions (including &#147;hot&#148; issues) in a manner which it believes to be
equitable under the circumstances. As a result of such allocations, there may
be instances where the Fund will not participate in a transaction that is
allocated among other accounts. Additionally, trades executed by different
firms, including the Adviser, will not be aggregated and allocated as to price;
thus, there may be instances where the Fund does not pay or receive the same
price as other investment accounts managed by the Adviser. While these
aggregation and allocation policies could have a detrimental effect on the
price or amount of the securities available to the Fund from time to time, it
is the opinion of the directors of the Fund that the benefits received from the
Adviser&#146;s organization outweigh any disadvantage that may arise from exposure
to simultaneous transactions.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund paid brokerage commissions in the aggregate amount of $799,719, $1,667,497
and $8,550,524 during 2005, 2004 and 2003, respectively, not including the
gross underwriting spread on securities purchased in underwritten public
offerings. The Fund did not pay any brokerage commissions during 2005, 2004 or
2003 to any broker that (1) is an affiliated person of the Fund, (2) is an
affiliated person of an affiliated person of the Fund or (3) has an affiliated
person that is an affiliated person of the Fund or the Adviser. The Fund did
not pay brokerage commissions to the Administrator during 2005, 2004 or 2003,
but has done so in the past and may do so again in the future.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=B004></A><FONT SIZE=2><B>ADDITIONAL
INFORMATION CONCERNING THE AUCTIONS FOR APS</B></FONT></P>

<P><FONT SIZE=2><B>General Securities Depository</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Depository Trust Company (&#147;DTC&#148;) will act as the Securities Depository with
respect to each series of APS. One certificate for all of the shares of each
series will be registered in the name of Cede &amp; Co., as nominee of the
Securities Depository. Such certificate will bear a legend to the effect that
such certificate is issued subject to the provisions restricting transfers of
shares of APS contained in the Articles Supplementary. The Fund will also issue
stop transfer instructions to the transfer agent for APS. Prior to the
commencement of the right of holders of APS to elect a majority of the Fund&#146;s
directors, as described under &#147;Description of APS&#151;Voting Rights&#148; in the
Prospectus, Cede &amp; Co. will be the holder of record of each series of APS
and owners of such shares will not be entitled to receive certificates
representing their ownership interest in such shares.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DTC,
a New York chartered limited purpose trust company, performs services for its
participants, some of whom (and/or their representatives) own DTC. DTC
maintains lists of its participants and will maintain the positions (ownership
interests) held by each such participant in shares of APS, whether for its own
account or as a nominee for another person.</FONT></P>

<P><FONT SIZE=2><B>Concerning the Auction Agent</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
auction agent will act as agent for the Fund in connection with Auctions. In
the absence of bad faith or negligence on its part, the auction agent will not
be liable for any action taken, suffered, or omitted or for any error of
judgment made by it in the performance of its duties under the auction agency
agreement between the Fund and the auction agent and will not be liable for any
error of judgment made in good faith unless the auction agent was negligent in
ascertaining the pertinent facts.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
auction agent may rely upon, as evidence of the identities of the holders of
shares of APS, the auction agent&#146;s registry of holders, the results of auctions
and notices from any Broker-Dealer (or other person, if permitted by the Fund)
with respect to transfers described under &#147;The Auction&#151;Secondary Market Trading
and Transfers of APS&#148; in the Prospectus and notices from the Fund. The auction
agent is not required to accept any such notice for an auction unless it is
received by the auction agent by 3:00 p.m., New York City time, on the business
day preceding such auction.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
auction agent may terminate its auction agency agreement with the Fund upon
notice to the Fund on a date no earlier than 45 days after such notice. If the
auction agent should resign, the Fund will use its best efforts to enter into
an agreement with a successor auction agent containing substantially the same
terms and conditions as the auction agency agreement. The Fund may remove the
auction agent provided that prior to such removal the Fund shall have entered
into such an agreement with a successor auction agent.</FONT></P>

<P><FONT SIZE=2><B>Broker-Dealers</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
auction agent after each auction for the shares of APS will pay to each
Broker-Dealer, from funds provided by the Fund, a service charge at the annual
rate of &frac14; of 1% in the case of any
auction immediately preceding a dividend period of less than one year, or a
percentage agreed to by the Fund and the Broker-Dealers in the case of any
auction immediately preceding a dividend period of one year or longer, of the
purchase price of the shares of APS placed by such Broker-Dealer at such
auction. For the purposes of the preceding sentence, shares of APS will be
placed by a Broker-Dealer if such shares were (a) the subject of hold orders
deemed to have been submitted to the auction agent by the Broker-Dealer and
were acquired by such Broker-Dealer for its own account or were acquired by
such Broker-Dealer for its customers who are beneficial owners or (b) the
subject of an order submitted by such Broker-Dealer that is (i) a submitted bid
of an existing holder that resulted in the existing holder continuing to hold
such shares as a result of the auction or (ii) a submitted bid of a potential
holder that resulted in the potential holder purchasing such shares as a result
of the auction or (iii) a valid hold order.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may request the auction agent to terminate one or more Broker-Dealer
agreements at any time, provided that at least one Broker-Dealer agreement is
in effect after such termination.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2><B>Orders by Existing Holders and Potential
Holders</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>On or prior
  to the submission deadline on each auction date for shares of a series of
  APS:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>each
  beneficial owner of shares of such series may submit to its Broker-Dealer by
  telephone or otherwise a:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Hold
  Order&#148;: indicating the number of outstanding shares, if any, of such series
  that such beneficial owner desires to continue to hold without regard to the
  Applicable Rate for such shares of such series for the next succeeding
  Dividend Period of such shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Bid&#148;:
  indicating the number of outstanding shares, if any, of such series that such
  beneficial owner offers to sell if the Applicable Rate for such shares of
  such series for the next succeeding Dividend Period shall be less than the
  rate per annum specified by such beneficial owner in such Bid; and/or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#147;Sell
  Order&#148;: indicating the number of outstanding shares, if any, of such that
  such beneficial owner offers to sell without regard to the Applicable Rate
  for such shares of such series for the next succeeding Dividend Period; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Broker-Dealers
  shall contact customers who are Potential Beneficial Owners by telephone or
  otherwise to determine whether such customers desire to submit Bids, in which
  they will indicate the number of shares, if any, of such series that they
  offer to purchase if the Applicable Rate for shares of such series for the
  next succeeding Dividend Period is not less than the rate per annum specified
  in such Bids.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
communication to a Broker-Dealer of the foregoing information is herein
referred to as an &#147;Order&#148; and collectively as &#147;Orders.&#148; A Beneficial Owner or a
Potential Beneficial Owner placing an Order with its Broker-Dealer is herein
referred to as a &#147;Bidder&#148; and collectively as &#147;Bidders.&#148; The submission by a
Broker-Dealer of an Order to the Auction Agent shall likewise be referred to
herein as an &#147;Order&#148; and collectively as &#147;Orders,&#148; and an Existing Holder or
Potential Holder who places an Order with the Auction Agent or on whose behalf
an Order is placed with the Auction Agent shall likewise be referred to herein
as a &#147;Bidder&#148; and collectively as &#147;Bidders.&#148;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Beneficial Owner may submit different types of Orders to its Broker-Dealer with
respect to shares of a series of APS then held by such Beneficial Owner. A Bid
placed by a Beneficial Owner specifying a rate higher than the Applicable Rate
determined in the Auction shall constitute an irrevocable offer to sell the shares
subject thereto. A Beneficial Owner that submits a Bid to its Broker-Dealer
having a rate higher than the Maximum Applicable Rate on the Auction Date
thereof will be treated as having submitted a Sell Order to its Broker-Dealer.
A Beneficial Owner that fails to submit to its Broker-Dealer prior to the
Submission Deadline for shares of such series an Order or Orders covering all
the Outstanding shares of such series held by such Beneficial Owner will be
deemed to have submitted a Hold Order to its Broker-Dealer covering the number
of Outstanding shares of such series held by such Beneficial Owner and not
subject to Orders submitted to its Broker-Dealer; provided, however, that if a
Beneficial Owner fails to submit to its Broker-Dealer prior to the Submission
Deadline for shares of a series of APS an Order or Orders covering all of the
Outstanding shares of such series held by such Beneficial Owner for an Auction
relating to a Special Dividend Period consisting of more than 28 days, such
Beneficial Owner will be deemed to have submitted a Sell Order to its
Broker-Dealer covering the number of Outstanding shares of such series held by
such Beneficial Owner and not subject to Orders submitted to its Broker-Dealer.
A Sell Order shall constitute an irrevocable offer to sell the shares of such
series of APS subject thereto at a price per share equal to $25,000. A
Beneficial Owner of shares of a series of APS that offers to become the
Beneficial Owner of additional shares of such series of APS is, for purposes of
such offer, a Potential Beneficial Owner.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Potential Beneficial Owner of shares of a series of APS may submit to its
Broker-Dealer Bids in which it offers to purchase shares of a series if the
Applicable Rate for the next Dividend Period is not less than the rate
specified in such Bid. A Bid placed by a Potential Beneficial Owner specifying
a rate not higher than the Maximum Applicable Rate shall constitute an
irrevocable offer to purchase the number of shares of a series of APS specified
in such Bid if the rate determined in the Auction is equal to or greater than
the rate specified in such Bid.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
described more fully below under &#147;&#151;Submission of Orders by Broker-Dealers to
Auction Agent,&#148; the Broker-Dealers will submit the Orders of their respective
customers who are Beneficial Owners and Potential Beneficial Owners to the
Auction Agent, designating themselves (unless otherwise permitted by the Fund)
as Existing Holders in respect of shares of such series of APS subject to
Orders submitted or deemed submitted to them by Beneficial Owners and as
Potential Holders in respect of shares of such series subject to Orders
submitted to them by Potential Beneficial Owners. However, neither the Fund nor
the Auction Agent will be responsible for a Broker-Dealer&#146;s failure to comply
with the foregoing. Any Order placed with the Auction Agent by a Broker-Dealer
as or on behalf of an Existing Holder or a Potential Holder will be treated in
the same manner as an Order placed with a Broker-Dealer by a Beneficial Owner
or a Potential Beneficial Owner, as described in the preceding paragraph.
Similarly, any failure by a Broker-Dealer to submit to the Auction Agent an
Order in respect of any shares of a series of APS held by it or its customers
who are Beneficial Owners will be treated in the same manner as a Beneficial
Owner&#146;s failure to submit to its Broker-Dealer an Order in respect of shares of
a series of APS held by it, as described in the second preceding paragraph. For
information concerning the priority given to different types of Orders placed
by Existing Holders, see &#147;&#151;Submission of Orders by Broker-Dealers to Auction
Agent&#148; below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
the Fund nor an affiliate may submit an Order in any Auction, except that any
Broker-Dealer that is an affiliate of the Fund may submit Orders in an Auction,
but only if such Orders are not for its own account.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Auction Procedures include a pro rata allocation of shares for purchase and
sale, which may result in an Existing Holder continuing to hold or selling, or
a Potential Holder purchasing, a number of shares of a series of APS that is
fewer than the number of shares of such series specified in its Order. See
&#147;&#151;Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation
of Shares&#148; below. To the extent the allocation procedures have that result,
Broker-Dealers that have designated themselves as Existing Holders or Potential
Holders in respect of customer Orders will be required to make appropriate pro
rata allocations among their respective customers. Each purchase or sale shall
be made for settlement on the Business Day next succeeding the Auction Date at
a price per share equal to $25,000. See &#147;&#151;Notification of Results; Settlement&#148;
below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
described above, any Bid specifying a rate higher than the Maximum Applicable
Rate will (i) be treated as a Sell Order if submitted by a Beneficial Owner or
an Existing Holder and (ii) not be accepted if submitted by a Potential
Beneficial Owner or a Potential Holder. Accordingly, the Auction Procedures
establish the Maximum Applicable Rate as a maximum rate per annum that can
result from an Auction. See &#147;&#151;Determination of Sufficient Clearing Bids,
Winning Bid Rate and Applicable Rate&#148; and &#147;&#151;Acceptance and Rejection of
Submitted Bids and Submitted Sell Orders and Allocation of Shares&#148; below.</FONT></P>

<P><FONT SIZE=2><B>Submission of Orders by Broker-Dealers to
Auction Agent</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to 1:00 p.m., New York City time, on each Auction Date, or such other time on
the Auction Date specified by the Auction Agent (<I>i.e.</I>, the Submission Deadline), each Broker-Dealer will
submit to the Auction Agent in writing all Orders obtained by it for the
Auction to be conducted on such Auction Date, designating itself (unless
otherwise permitted by the Fund) as the Existing Holder or Potential Holder, as
the case may be, in respect of the shares of a series of APS subject to such
Orders. Any Order submitted by a Beneficial Owner or a Potential Beneficial
Owner to its Broker-Dealer, or by a Broker-Dealer to the Auction Agent, prior
to the Submission Deadline on any Auction Date, shall be irrevocable.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any rate specified in any Bid contains more than three figures to the right of
the decimal point, the Auction Agent will round such rate to the next highest
one-thousandth (0.001) of 1%.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
one or more Orders of an Existing Holder is submitted to the Auction Agent
covering in the aggregate more than the number of Outstanding APS of a series
subject to an Auction held by such Existing Holder, such Orders will be
considered valid in the following order of priority:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>all Hold
  Orders for shares of such series will be considered valid, but only up to and
  including in the aggregate the number of Outstanding shares of such series
  held by such Existing Holder, and, if the number of shares of such series
  subject to such Hold Orders exceeds the number of Outstanding shares of such
  series held by such Existing Holder, the number of shares subject to each
  such Hold Order shall be reduced pro rata to cover the number of Outstanding
  shares held by such Existing Holder;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(i)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>any Bid for
  shares of such series will be considered valid up to and including the excess
  of the number of shares of Outstanding shares of such series held by such
  Existing Holder over the number of shares of such series subject to any Hold
  Orders referred to in clause (a) above;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(ii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>subject to
  subclause (i), if more than one Bid of an Existing Holder for shares of such
  series is submitted to the Auction Agent with the same rate and the number of
  Outstanding shares of such series subject to such Bids is greater than such
  excess, such Bids will be considered valid up to and including the amount of
  such excess, and the number of shares of such series subject to each Bid with
  the same rate will be reduced pro rata to cover the number of shares of such
  series equal to such excess;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iii)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>subject to
  subclauses (i) and (ii), if more than one Bid of an Existing Holder for
  shares of such series is submitted to the Auction Agent with different rates,
  such Bids shall be considered valid in the ascending order of their
  respective rates up to and including the amount of such excess; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(iv)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>in any such
  event, the number, if any, of such Outstanding shares of such series subject
  to any portion of Bids considered not valid in whole or in part under this
  clause (b) will be treated as the subject of a Bid for shares of such series
  by or on behalf of a Potential Holder at the rate specified therein; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>all Sell
  Orders for shares of such series will be considered valid up to and including
  the excess of the number of Outstanding shares of such series held by such
  Existing Holder over the sum of shares of such series subject to valid Hold
  Orders referred to in clause (a) above and valid Bids referred to in clause
  (b) above.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
more than one Bid of a Potential Holder for shares of a series of APS is
submitted to the Auction Agent by or on behalf of any Potential Holder, each
such Bid submitted will be a separate Bid with the rate and number of shares of
such series therein specified.</FONT></P>

<P><FONT SIZE=2><B>Determination of Sufficient Clearing Bids,
Winning Bid Rate and Applicable Dividend Rate</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Not
earlier than the Submission Deadline on each Auction Date for shares of a
series of APS, the Auction Agent will assemble all valid Orders submitted or
deemed submitted to it by the Broker-Dealers (each such Hold Order, Bid or Sell
Order as submitted or deemed submitted by a Broker-Dealer being herein referred
to as a &#147;Submitted Hold Order,&#148; a &#147;Submitted Bid&#148; or a &#147;Submitted Sell Order,&#148;
as the case may be, or as a &#147;Submitted Order&#148; and collectively as &#147;Submitted
Hold Orders,&#148; &#147;Submitted Bids&#148; or &#147;Submitted Sell Orders,&#148; as the case may be,
or as &#147;Submitted Orders&#148;) and will determine the excess of the number of
Outstanding shares of such series over the number of Outstanding shares of such
series subject to Submitted Hold Orders (such excess being herein referred to
as the &#147;Available APS&#148;) and whether Sufficient Clearing Bids have been made in
the Auction. &#147;Sufficient Clearing Bids&#148; will have been made if the number of
Outstanding shares of such series that are the subject of Submitted Bids of
Potential Holders specifying rates not higher than the Maximum Dividend Rate
for all Dividend Periods equals or exceeds the number of outstanding shares of
such series that are the subject of Submitted Sell Orders (including the number
of shares of such series subject to Bids of Existing Holders specifying rates
higher than the Maximum Dividend Rate).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Sufficient Clearing Bids for shares of a series of APS have been made, the
Auction Agent will determine the lowest rate specified in such Submitted Bids
(the &#147;Winning Bid Rate&#148;) for shares of such series which, taking into account
the rates in the Submitted Bids of Existing Holders, would result in Existing
Holders continuing to hold an aggregate number of Outstanding shares of such
series which, when added to the number of outstanding shares of such series to
be purchased by Potential Holders, based on the rates in their Submitted Bids,
would equal not less than the Available APS. In such event, the Winning Bid
Rate will be the Applicable Dividend Rate for the next Dividend Period for all
shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Sufficient Clearing Bids have not been made (other than because all of the
outstanding shares of a series of APS are subject to Submitted Hold Orders),
the Applicable Dividend Rate for the next Dividend Period for all shares of
such series will be equal to the Maximum Dividend Rate. If Sufficient Clearing
Bids have not been made, Beneficial Owners that have submitted or that are
deemed to have submitted Sell Orders may not be able to sell in the Auction all
shares of such series subject to such Sell Orders but will continue to own
shares of such</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>series for the
next Dividend Period. See &#147;&#151;Acceptance and Rejection of Submitted Bids and
Submitted Sell Orders and Allocation of Shares&#148; below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
all of the outstanding shares of a series of APS are subject to Submitted Hold
Orders, the Applicable Dividend Rate for all shares of such series for the next
succeeding Dividend Period shall be the All Hold Rate.</FONT></P>

<P><FONT SIZE=2><B>Acceptance and Rejection of Submitted Bids
and Submitted Sell Orders and Allocation of Shares</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Based
on the determinations made under &#147;&#151;Determination of Sufficient Clearing Bids,
Winning Bid Rate and Applicable Dividend Rate&#148; above and, subject to the
discretion of the Auction Agent to round and allocate certain shares as described
below, Submitted Bids and Submitted Sell Orders will be accepted or rejected in
the order of priority set forth in the Auction Procedures, with the result that
Existing Holders and Potential Holders of shares of a series of APS will sell,
continue to hold and/or purchase such shares as set forth below. Existing
Holders that submitted or were deemed to have submitted Hold Orders (or on
whose behalf Hold Orders were submitted or deemed to have been submitted) will
continue to hold the shares of such series subject to such Hold Orders.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP COLSPAN=2>
<P><FONT SIZE=2>If
  Sufficient Clearing Bids for shares of a series of APS have been made:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Existing Holder that placed or on whose behalf was placed a Submitted Sell
  Order or Submitted Bid specifying any rate higher than the Winning Bid Rate
  will sell the outstanding shares of such series subject to such Submitted
  Sell Order or Submitted Bid;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Existing Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate lower than the Winning Bid Rate will continue to hold the
  Outstanding shares of such series subject to such Submitted Bid;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Potential Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate lower than the Winning Bid Rate will purchase the number of
  outstanding shares of such series subject to such Submitted Bid;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(d)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Existing Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate equal to the Winning Bid Rate will continue to hold the
  shares of such series subject to such Submitted Bid, unless the number of
  Outstanding APS of such series subject to all such Submitted Bids is greater
  than the number of shares of APS (&#147;remaining shares&#148;) in excess of the
  Available APS over the number of shares of APS accounted for in clauses (b)
  and (c) above, in which event each Existing Holder with such a Submitted Bid
  will continue to hold shares of APS of such series subject to such Submitted
  Bid determined on a pro rata basis based on the number of Outstanding APS
  subject to all such Submitted Bids of such Existing Holders; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(e)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Potential Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate equal to the Winning Bid Rate for shares of such series
  will purchase any shares of Available APS not accounted for in clauses (b)
  through (d) above on a pro rata basis based on the Outstanding APS subject to
  all such Submitted Bids.</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
Sufficient Clearing Bids for shares of a series of APS have not been made
(unless this results because all Outstanding shares of such series are subject
to Submitted Hold Orders):</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(a)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Existing Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate equal to or lower than the Maximum Dividend Rate for shares
  of such series will continue to hold the shares of APS subject to such
  Submitted Bid;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(b)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Potential Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate equal to or lower than the Maximum Dividend Rate for shares
  of such series will purchase the number of shares of APS subject to such
  Submitted Bid; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>(c)</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Each
  Existing Holder that placed or on whose behalf was placed a Submitted Bid
  specifying a rate higher than the Maximum Dividend Rate for shares of such
  series or a Submitted Sell Order will sell a number of shares of such series
  subject to such Submitted Bid or Submitted Sell Order determined on a pro
  rata basis based on the number of Outstanding shares of such series subject
  to all such Submitted Bids and Submitted Sell Orders.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>20</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If,
as a result of the pro rata allocation described in clauses (d) or (e) of the
second preceding paragraph or clause (c) of the next preceding paragraph, any
Existing Holder would be entitled or required to sell, or any Potential Holder
would be entitled or required to purchase, a fraction of a share of APS of a
series, the Auction Agent will, in such manner as, in its sole discretion, it
will determine, round up or down to the nearest whole share the number of
shares of APS of such series being sold or purchased on such Auction Date so
that the number of shares of such series sold or purchased by each Existing
Holder or Potential Holder will be whole shares of such series. If as a result
of the pro rata allocation described in clause (e) of the second preceding
paragraph, any Potential Holder would be entitled or required to purchase less
than a whole share of a series of APS, the Auction Agent will, in such manner
as, in its sole discretion, it will determine, allocate shares of such series
for purchase among Potential Holders so that only whole shares of such series
are purchased by any such Potential Holder, even if such allocation results in
one or more of such Potential Holders not purchasing shares of such series.</FONT></P>

<P><FONT SIZE=2><B>Notification of Results; Settlement</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Auction Agent will be required to advise each Broker-Dealer that submitted an
Order of the Applicable Dividend Rate for the next Dividend Period and, if the
Order was a Bid or Sell Order, whether such Bid or Sell Order was accepted or
rejected, in whole or in part, by telephone by approximately 3:30 p.m., New
York City time, on each Auction Date. Each Broker-Dealer that submitted an
Order for the account of a customer will then be required to advise such
customer of the Applicable Dividend Rate for the next Dividend Period and, if
such Order was a Bid or a Sell Order, whether such Bid or Sell Order was
accepted or rejected, in whole or in part, will be required to confirm
purchases and sales with each customer purchasing or selling shares of such
series as a result of the Auction and will be required to advise each customer
purchasing or selling APS as a result of the Auction to give instructions to
its Agent Member of the Securities.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Securities Depository will pay the purchase price against delivery of such
shares or will deliver such shares against payment therefor, as appropriate.
The Auction Agent will be required to record each transfer of shares of a
series of APS on the registry of Existing Holders to be maintained by the
Auction Agent.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
accordance with the Securities Depository&#146;s normal procedures, on the Business
Day after the Auction Date, the transactions described above will be executed
through the Securities Depository and the accounts of the respective Agent
Members at the Securities Depository will be debited and credited and shares
delivered as necessary to effect the purchases and sales of shares of a series
of APS as determined in the Auction. Purchasers will make payment through their
Agent Members in same-day funds to the Securities Depository against delivery
through their Agent Members; the Securities Depository will make payment in
accordance with its normal procedures, which provide for payment against
delivery by their Agent Members in same-day funds.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
any Existing Holder selling shares of a series of APS in an Auction fails to
deliver such shares, the Broker-Dealer of any person that was to have purchased
such shares in such Auction may deliver to such person a number of whole shares
of such series that is less than the number of shares of such series that
otherwise was to be purchased by such person. In such event, the number of
shares of such series to be so delivered shall be determined by such
Broker-Dealer. Delivery of such lesser number of shares of such series shall
constitute good delivery.</FONT></P>

<P ALIGN=CENTER><A NAME=B005></A><FONT SIZE=2><B>REPURCHASE OF
COMMON STOCK</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund is a closed-end management investment company and as such its shareholders
will not have the right to cause the Fund to redeem their shares of common
stock. Instead, the Fund&#146;s common stock will trade in the open market at a
price that will be a function of several factors, including dividend levels
(which are in turn affected by expenses), net asset value, call protection,
dividend stability, relative demand for and supply of such shares in the
market, general market and economic conditions and other factors. Because
shares of a closed-end investment company may frequently trade at prices lower
than net asset value, the Fund&#146;s board of directors may consider action that
might be taken to reduce or eliminate any material discount from net asset
value in respect of common stock, which may include the repurchase of such
shares in the open market or in private transactions, the making of a tender offer
for such shares, or the conversion of the Fund to an open-end investment
company. The board of directors may decide not to take any of these actions. In
addition, there can be no assurance that share repurchases or tender offers, if
undertaken, will reduce market discount.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>21</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding
the foregoing, at any time when the Fund&#146;s preferred stock is outstanding, the
Fund may not purchase, redeem or otherwise acquire any of its common stock
unless (1) all accrued preferred stock dividends have been paid and (2) at the
time of such purchase, redemption or acquisition, the net asset value of the
Fund&#146;s portfolio (determined after deducting the acquisition price of the
common stock) is at least 200% of the liquidation value of the outstanding
preferred stock (expected to equal the original purchase price per share plus
any accrued and unpaid dividends thereon). Any service fees incurred in
connection with any tender offer made by the Fund will be borne by the Fund and
will not reduce the stated consideration to be paid to tendering shareholders.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to its investment restrictions, the Fund may borrow to finance the repurchase
of shares or to make a tender offer. Interest on any borrowings to finance
share repurchase transactions or the accumulation of cash by the Fund in
anticipation of share repurchases or tenders will reduce the Fund&#146;s net income.
Any share repurchase, tender offer or borrowing that might be approved by the
Fund&#146;s board of directors would have to comply with the Securities Exchange Act
of 1934, the Investment Company Act and the rules and regulations thereunder.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although
the decision to take action in response to a discount from net asset value will
be made by the board of directors at the time it considers such issue, it is
the board&#146;s present policy, which may be changed by the board of directors, not
to authorize repurchases of common stock or a tender offer for such shares if:
(1) such transactions, if consummated, would (a) result in the de-listing of
the common stock from the New York Stock Exchange, or (b) impair the Fund&#146;s
status as a regulated investment company under the Code (which would make the
Fund a taxable entity, causing the Fund&#146;s income to be taxed at the corporate
level in addition to the taxation of shareholders who receive dividends from
the Fund), or as a registered closed-end investment company under the
Investment Company Act; (2) the Fund would not be able to liquidate portfolio
securities in an orderly manner and consistent with the Fund&#146;s investment
objectives and policies in order to repurchase shares; or (3) there is, in the
board&#146;s judgment, any (a) material legal action or proceeding instituted or
threatened challenging such transactions or otherwise materially adversely affecting
the Fund, (b) general suspension of or limitation on prices for trading
securities on the New York Stock Exchange, (c) declaration of a banking
moratorium by Federal or state authorities or any suspension of payment by
United States or New York banks, (d) material limitation affecting the Fund or
the issuers of its portfolio securities by Federal or state authorities on the
extension of credit by lending institutions or on the exchange of foreign
currency, (e) commencement of war, armed hostilities or other international or
national calamity directly or indirectly involving the United States or (f)
other event or condition which would have a material adverse effect (including
any adverse tax effect) on the Fund or its shareholders if shares were repurchased.
The board of directors may in the future modify these conditions in light of
experience.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
repurchase by the Fund of its shares at prices below net asset value will
result in an increase in the net asset value of those shares that remain
outstanding. However, there can be no assurance that share repurchases or
tender offers at or below net asset value will result in the Fund&#146;s shares
trading at a price equal to their net asset value. Nevertheless, the fact that
the Fund&#146;s shares may be the subject of repurchase or tender offers from time
to time, or that the Fund may be converted to an open-end investment company,
may reduce any spread between market price and net asset value that might
otherwise exist.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, a purchase by the Fund of its common stock will decrease the Fund&#146;s
total assets which would likely have the effect of increasing the Fund&#146;s
expense ratio. Any purchase by the Fund of its common stock at a time when
preferred stock is outstanding will increase the leverage applicable to the
outstanding common stock then remaining.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Before
deciding whether to take any action if the shares of common stock trade below
net asset value, the Fund&#146;s board of directors would likely consider all
relevant factors, including the extent and duration of the discount, the
liquidity of the Fund&#146;s portfolio, the impact of any action that might be taken
on the Fund or its shareholders and market considerations. Based on these
considerations, even if the Fund&#146;s shares should trade at a discount, the board
of directors may determine that, in the interest of the Fund and its
shareholders, no action should be taken.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>22</FONT></P>

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<P ALIGN=CENTER><A NAME=B006></A><FONT SIZE=2><B>DIVIDEND
REINVESTMENT PLAN</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
the Fund&#146;s dividend reinvestment plan, shareholders may elect to have all
dividends and capital gains distributions paid on their common stock
automatically reinvested by The Bank of New York, as agent for shareholders, in
additional shares of common stock of the Fund. Registered shareholders may
participate in the plan. The plan permits a nominee, other than a depository,
to participate on behalf of those beneficial owners for whom it is holding
shares who elect to participate. However, some nominees may not permit a
beneficial owner to participate without transferring the shares into the
owner&#146;s name. Shareholders who do not elect to participate in the plan will
receive all distributions in cash paid by check mailed directly to the
shareholder (or, if the shareholder&#146;s shares are held in street or other
nominee name, then to such shareholder&#146;s nominee) by The Bank of New York as
dividend disbursing agent. Registered shareholders may also elect to have cash
dividends deposited directly into their bank accounts.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
a dividend or distribution is reinvested under the plan, the number of shares
of common stock equivalent to the cash dividend or distribution is determined
as follows:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
If shares of the common stock are trading at net asset value or at a premium
above net asset value at the valuation date, the Fund issues new shares of
common stock at the greater of net asset value or 95% of the then current
market price.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
If shares of the common stock are trading at a discount from net asset value at
the valuation date, The Bank of New York receives the dividend or distribution
in cash and uses it to purchase shares of common stock in the open market, on
the New York Stock Exchange or elsewhere, for the participants&#146; accounts.
Shares are allocated to participants&#146; accounts at the average price per share,
plus commissions, paid by The Bank of New York for all shares purchased by it.
If, before The Bank of New York has completed its purchases, the market price
exceeds the net asset value of a share, the average purchase price per share
paid by The Bank of New York may exceed the net asset value of the Fund&#146;s
shares, resulting in the acquisition of fewer shares than if the dividend or
distribution had been paid in shares issued by the Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
valuation date is the business day immediately preceding the date of payment of
the dividend or distribution. On that date, the Administrator compares that
day&#146;s net asset value per share and the closing price per share on the New York
Stock Exchange and determines which of the two alternative procedures described
above will be followed.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
reinvestment shares are credited to the participant&#146;s plan account in the
Fund&#146;s stock records maintained by The Bank of New York, including a fractional
share to four decimal places. The Bank of New York will send participants
written confirmation of all transactions in the participant&#146;s plan account,
including information participants will need for tax records. Shares held in
the participant&#146;s plan account have full dividend and voting rights. Dividends
and distributions paid on shares held in the participant&#146;s plan account will
also be reinvested.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
cost of administering the plan is borne by the Fund. There is no brokerage
commission on shares issued directly by the Fund. However, participants do pay
a pro rata share of brokerage commissions incurred on any open market purchases
of shares by The Bank of New York.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
automatic reinvestment of dividends and distributions does not relieve
participants of any income taxes that may be payable (or required to be
withheld) on dividends or distributions.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the closing market price of shares of the Fund&#146;s common stock should be equal
to or greater than their net asset value on the valuation date, the
participants in the plan would receive shares priced at the higher of net asset
value or 95% of the market price. Consequently they would receive more shares
at a lower per share price than if they had used the cash distribution to
purchase Fund shares on the payment date in the market at the market price plus
commission.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the market price should be less than net asset value on the valuation date, the
cash distribution for the plan participants would be used by The Bank of New
York to purchase the shares to be received by the participants, which would be
at a discount from net asset value unless the market price should rise during
the purchase period so that the average price and commission exceeded net asset
value as of the payment date. Also, since the Fund does not redeem its common
stock, the price on resale may be less or more than the net asset value.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>23</FONT></P>

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<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Plan
participants may purchase additional shares of common stock through the plan by
delivering to The Bank of New York a check for at least $100, but not more than
$5,000, in any month. The Bank of New York will use such funds to purchase
shares in the open market or in private transactions. The purchase price of
such shares may be more than or less than net asset value per share. The Fund
will not issue new shares or supply treasury shares for such voluntary
additional share investment. Purchases will be made commencing with the time of
the first distribution payment following the second business day after receipt
of the funds for additional purchases, and may be aggregated with purchases of
shares for reinvestment of the distribution. Shares will be allocated to the
accounts of participants purchasing additional shares at the average price per
share, plus a service charge of $2.50 imposed by The Bank of New York and a pro
rata share of any brokerage commission (or equivalent purchase costs) paid by
The Bank of New York in connection with such purchases. Funds sent to the bank
for voluntary additional share reinvestment may be recalled by the participant
by written notice received by The Bank of New York not later than two business
days before the next dividend payment date. If for any reason a regular monthly
dividend is not paid by the Fund, funds for voluntary additional share
investment will be returned to the participant, unless the participant
specifically directs that such funds continue to be held by The Bank of New
York for subsequent investment. Participants will not receive interest on
voluntary additional funds held by The Bank of New York pending investment.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
shareholder may leave the plan at any time by written notice to The Bank of New
York. To be effective for any given distribution, notice must be received by
The Bank of New York at least seven business days before the record date for
that distribution. When a shareholder leaves the plan: (i) such shareholder may
request that The Bank of New York sell such shareholder&#146;s shares held in such
shareholder&#146;s plan account and send such shareholder a check for the net
proceeds (including payment of the value of a fractional share, valued at the
closing price of the Fund&#146;s common stock on the New York Stock Exchange on the
date discontinuance is effective) after deducting The Bank of New York&#146;s $5.00
charge and any brokerage commission (or equivalent sale cost) or (ii) if no
request is made, such shareholder will receive a certificate for the number of
full shares held in such shareholder&#146;s plan account, along with a check for any
fractional share interest, valued at the closing price of the Fund&#146;s common
stock on the New York Stock Exchange on the date discontinuance is effective.
If and when it is determined that the only balance remaining in a shareholder&#146;s
plan account is a fraction of a single share, such shareholder&#146;s participation
will be deemed to have terminated, and The Bank of New York will send to such
shareholder a check for the value of such fractional share, valued at the
closing price of the Fund&#146;s common stock on the New York Stock Exchange on the
date discontinuance is effective.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may change, suspend or terminate the plan at any time upon mailing a
notice to participants.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
more information regarding, and an authorization form for, the dividend
reinvestment plan, please contact The Bank of New York at 1-877-381-2537 or on
the World Wide Web at http://stock.bankofny.com.</FONT></P>

<P ALIGN=CENTER><A NAME=B007></A><FONT SIZE=2><B>U.S. FEDERAL
INCOME TAX MATTERS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
following discussion is a brief summary of certain U.S. federal income tax
considerations affecting the Fund and its U.S. shareholders. No attempt is made
to present a detailed explanation of all U.S. federal, state, local and foreign
tax concerns affecting the Fund and its shareholders (including shareholders
owning a large position in the Fund), and the discussions set forth here and in
the Prospectus do not constitute tax advice. Investors are urged to consult
their tax advisors with any specific questions relating to federal, state,
local and foreign taxes. The discussion reflects applicable tax laws of the
United States as of the date of this Statement of Additional Information, which
tax laws may be changed or subject to new interpretations by the courts or the
IRS retroactively or prospectively.</FONT></P>

<P><FONT SIZE=2><B>Taxation of the Fund</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund has elected to be treated, has qualified and intends to continue to
qualify each year as a regulated investment company (a &#147;RIC&#148;) under Subchapter
M of the Code. Accordingly, the Fund must, among other things, (i) derive in
each taxable year at least 90% of its gross income (including tax-exempt
interest) from dividends, interest, payments with respect to certain securities
loans, and gains from the sale or other disposition of stock, securities or
foreign currencies, other income (including but not limited to gains from
options, futures and</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>24</FONT></P>

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<P><FONT SIZE=2>forward
contracts) derived with respect to its business of investing in such stock,
securities, or currencies and income from interests in qualified publicly
traded partnerships; (ii) diversify its holdings so that, at the end of each
quarter of each taxable year (a) at least 50% of the market value of the Fund&#146;s
total assets is represented by cash and cash items, U.S. government securities,
the securities of other RICs and other securities, with such other securities
limited, in respect of any one issuer, to an amount not greater than 5% of the
value of the Fund&#146;s total assets and not more than 10% of the outstanding
voting securities of such issuer, and (b) not more than 25% of the market value
of the Fund&#146;s total assets is invested in the securities (other than U.S. government
securities and the securities of other RICs) of (I) any one issuer, (II) any
two or more issuers that the Fund controls and that are determined to be
engaged in the same business or similar or related trades or businesses or
(III) one or more qualified publicly traded partnerships; and (iii) distribute
substantially all of its net income and net short-term and long-term capital
gains (after reduction by any available capital loss carryforwards) in
accordance with the timing requirements imposed by the Code, so as to maintain
its RIC status and to avoid paying any federal income or excise tax. To the
extent it qualifies for treatment as a RIC and satisfies the above-mentioned
distribution requirements, the Fund will not be subject to federal income tax on
income paid to its shareholders in the form of dividends or capital gain
distributions.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts
not distributed on a timely basis in accordance with a calendar year
distribution requirement are subject to a nondeductible 4% excise tax at the Fund
level. To avoid the tax, the Fund must distribute (or be deemed to have
distributed) by December 31 of each calendar year an amount at least equal to
the sum of (i) 98% of its ordinary income (not taking into account any capital
gain or loss) for the calendar year, (ii) 98% of its capital gain net income
(which is the excess of its realized net long-term capital gain over its
realized net short-term capital loss), generally computed on the basis of the
one-year period ending on October 31 of such year, after reduction by any
available capital loss carryforwards, plus (iii) 100% of any ordinary income
and capital gain net income from the prior year (as previously computed) that
was not paid during such year and on which the Fund paid no federal income tax.
While the Fund intends to distribute any income and capital gain in the manner
necessary to minimize imposition of the 4% excise tax, there can be no
assurance that sufficient amounts of the Fund&#146;s taxable income and capital gain
will be distributed to avoid entirely the imposition of the tax. In that event,
the Fund will be liable for the tax only on the amount by which it does not
meet the foregoing distribution requirement.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
dividend will be treated as paid during a calendar year if it is paid during
that calendar year or declared by the Fund in October, November or December of
that year, payable to shareholders of record on a date during such a month and
paid by the Fund during January of the following year. Any such dividends paid
during January of the following year will be deemed to be received on December
31 of the year the dividends are declared, rather than when the dividends are
received.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Fund does not qualify as a RIC for any taxable year, the Fund&#146;s taxable
income will be subject to corporate income taxes, and all distributions from
earnings and profits, including distributions of net capital gain (if any),
will be taxable to the shareholders as ordinary income. Such distributions
generally will be eligible (i) for the dividends received deduction in the case
of corporate shareholders and (ii) for treatment as &#147;qualified dividends&#148; in
the case of individual shareholders. In addition, in order to requalify for
taxation as a RIC, the Fund may be required to recognize unrealized gains, pay
substantial taxes and interest and make certain distributions.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Fund utilizes leverage through borrowings, it may be restricted by loan
covenants with respect to the declaration and payment of dividends in certain
circumstances. Additionally, if at any time when the shares of APS are
outstanding the Fund does not meet the asset coverage requirements of the
Investment Company Act, the Fund will be required to suspend distributions to
holders of common stock until the asset coverage is restored. See &#147;Description
of APS&#151;Dividends and Dividend Periods&#151;Restrictions on Dividends and Other
Payments.&#148; Such a suspension may prevent the Fund from distributing at least
90% of the sum of its investment company taxable income and certain other
income and may, therefore, jeopardize the Fund&#146;s qualification for taxation as
a regulated investment company. Upon any failure to meet the asset coverage
requirements of the Investment Company Act, the Fund, in its sole discretion,
may redeem shares of APS in order to maintain or restore the requisite asset
coverage and avoid the adverse consequences to the Fund and its shareholders of
failing to qualify for treatment as a regulated investment company. See
&#147;Description of APS&#151;Redemption.&#148; There can be no assurance, however, that any
such action would achieve that objective.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>25</FONT></P>

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<P><FONT SIZE=2><B>The Fund&#146;s Investments</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s investments in options, futures contracts, hedging transactions, forward
contracts (to the extent permitted) and certain other transactions will be
subject to special tax rules (including mark-to-market, constructive sale,
straddle, wash sale, short sale and other rules), the effect of which may be to
accelerate income to the Fund, defer Fund losses, cause adjustments in the
holding periods of securities held by the Fund, convert capital gain into
ordinary income and convert short-term capital losses into long-term capital
losses. These rules could therefore affect the amount, timing and character of
distributions to shareholders. The Fund may be required to limit its activities
in options and futures contracts in order to enable it to maintain its RIC
status.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Some
of the debt obligations acquired by the Fund may be treated as debt obligations
that are issued with original issue discount (&#147;OID&#148;). Such OID generally will
be included in income in the taxable year of accrual and before the Fund
receives any corresponding cash payments. Since, in certain circumstances, the
Fund may recognize income before receiving cash representing such income, it
may have difficulty making distributions in the amounts necessary to satisfy
the requirements for maintaining RIC status and for avoiding income and excise
taxes. Accordingly, the Fund may be required to borrow money or dispose of securities
under disadvantageous circumstances in order to generate cash to satisfy the
Fund&#146;s distribution requirements.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any
recognized gain or income attributable to market discount on long-term debt
obligations (<I>i.e.</I>, obligations
with a term of more than one year) purchased by the Fund is taxable as ordinary
income. A long-term debt obligation generally is treated as acquired at a
market discount if purchased after its original issue at a price less than (i)
the stated principal amount payable at maturity, in the case of any obligation
that does not have OID or (ii) the sum of the issue price and any OID that
accrued before the obligation was purchased, subject to a de min-imis
exclusion, in the case of an obligation that does have OID.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Fund invests (directly or indirectly through a REIT) in residual interests
in REMICs, a portion of the Fund&#146;s income will be subject to a U.S. federal
income tax in all events. &#147;Excess inclusion income&#148; of the Fund generated by a
residual interest in a REMIC will be allocated to shareholders of the Fund in
proportion to the dividends received by the shareholders of the Fund. Excess
inclusion income generally (i) cannot be offset by net operating losses, (ii)
will constitute unrelated business taxable income to certain tax exempt
investors and (iii) in the case of a foreign shareholder, will not qualify for
any reduction in U.S. federal withholding taxes. In addition, if the
shareholders of the Fund include a &#147;disqualified organization&#148; (such as certain
governments or governmental agencies) the Fund may be liable for a tax on the
excess inclusion income allocable to the disqualified organization.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund&#146;s transactions in foreign currencies, foreign currency-denominated debt
obligations and certain foreign currency options, futures contracts and forward
contracts (and similar instruments) may give rise to ordinary income or loss to
the extent such income or loss results from fluctuations in the value of the
foreign currency concerned.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income
received by the Fund with respect to foreign securities may be subject to
withholding and other taxes imposed by foreign countries. Tax conventions may
reduce or eliminate such taxes. Generally, shareholders will not be entitled to
claim a credit or deductions with respect to foreign taxes.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
the Fund acquires any equity interest in certain foreign corporations that
receive at least 75% of their annual gross income from passive sources (such as
interest, dividends, certain rents and royalties, or capital gains) or that
hold at least 50% of their assets in investments producing such income
(&#147;Passive Foreign Investment Companies&#148; or &#147;PFICs&#148;), the Fund could be subject
to U.S. federal income tax and additional interest charges on &#147;excess distributions&#148;
received from such companies or on gain from the sale of stock in such
companies, even if all income or gain actually received by the Fund is timely
distributed to its shareholders. The Fund would not be able to pass through to
its shareholders any credit or deduction for such a tax. An election generally
may be available that would ameliorate these adverse tax consequences, but any
such election could require the Fund to recognize taxable income or gain
(subject to tax distribution requirements) without the concurrent receipt of
cash. These investments could also result in the treatment of associated
capital gains as ordinary income. The Fund may limit and/or manage its holdings
in PFICs to limit its tax liability or maximize its return from these investments.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
American Jobs Creation Act of 2004 (the &#147;Jobs Act&#148;), among other things,
modified the 90% gross income test with respect to income of a RIC to include
net income derived from an interest in certain qualified &#147;publicly traded partnerships&#148;
(&#147;PTPs&#148;) and modified the asset diversification test of a RIC to include a new
limi-</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>26</FONT></P>

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<P><FONT SIZE=2>tation on the
investment by a RIC in certain qualified PTP interests. Under the Jobs Act, a
RIC may now invest in a qualified PTP regardless of the types of business the
PTP operates. The Jobs Act further provides that passive losses from an
investment in a qualified PTP may not be used by a RIC to offset any income
other than income from the same PTP and any deductions passed through by the
PTP may not be used by a RIC to offset income from other sources.</FONT></P>

<P><FONT SIZE=2><B>Taxation of Shareholders</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund intends to take the position that under present law, the APS will
constitute stock of the Fund, and distributions by the Fund with respect to its
APS (other than distributions in redemption of APS that are treated as
exchanges of stock under Section 302(b) of the Code) will constitute dividends
to the extent of the Fund&#146;s current and accumulated earnings and profits as
calculated for federal income tax purposes. It is possible, however, that the
IRS might take a contrary position, asserting, for example, that the APS
constitutes debt of the Fund. If this position were upheld, distributions by
the Fund to holders of APS would constitute interest, whether or not they exceeded
the earnings and profits of the Fund, would be included in full in the income
of the recipient and would be taxed as ordinary income. The following
discussion assumes that shares of APS are treated as stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
of any taxable net investment income and net short-term capital gain will be
taxable as ordinary income (except to the extent that a reduced capital gains
tax rate applies to qualified dividend income). Distributions of the Fund&#146;s net
capital gain, if any, will be taxable to shareholders as long-term capital
gains, regardless of the length of time they held their shares. So long as the
Fund has capital loss carryforwards, distributions derived from capital gains
in the Fund&#146;s portfolio may constitute ordinary income, rather than capital
gains, to shareholders. Distributions, if any, in excess of the Fund&#146;s earnings
and profits will first reduce the adjusted tax basis of a holder&#146;s shares and,
after that basis has been reduced to zero, will constitute capital gains to the
shareholder (assuming the shares are held as a capital asset). For purposes of
determining whether distributions are out of the Fund&#146;s current or accumulated
earnings and profits, the Fund&#146;s earnings and profits will be allocated first
to the Fund&#146;s preferred stock and then to the Fund&#146;s common stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
to certain conditions and limitations, under applicable federal income tax
provisions, a corporation receiving dividends with respect to stock it owns in
another corporation is allowed a deduction against a portion of such dividend
income received (the &#147;Dividends Received Deduction&#148;). The Fund expects to
receive dividends with respect to some or all of the stocks in other
corporations held by the Fund, and the Fund may designate such dividends as
eligible for the Dividends Received Deduction only to the extent that the Fund
receives dividends for which the Fund would be entitled to the Dividends
Received Deduction if the Fund were a regular corporation and not a RIC. A
corporation that owns common stock or preferred stock generally will be
entitled to a Dividends Received Deduction with respect to a designated portion
of the dividends it receives from the Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
dividends received by the Fund to be eligible for designation for the Dividends
Received Deduction, the dividends must be paid by a domestic corporation that
is subject to U.S. income tax and the Fund must hold the stock of such
corporation for at least 46 days during the 90-day period beginning 45 days
before the ex-dividend date for the stock (91 days during the 180-day period
for certain preferred stock). The Fund&#146;s holding period for stock will in
general not include any period for which the Fund holds an option to sell or is
the writer of an option to buy substantially identical stock, although there
exists an exception for certain options written by the Fund, the exercise
prices of which are not below the market prices of the underlying securities at
the times the options are written. The Dividends Received Deduction is reduced
for dividends received from debt-financed portfolio stock by a percentage
related to the amount of debt incurred to purchase such stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To
the extent that the source of dividends or distributions with respect to the
APS is dividends received by the Fund that would be eligible for the Dividends
Received Deduction, a corporate holder of common stock or preferred stock in
the Fund will be allowed a deduction equal to 70% of the dividends paid to it
by the Fund and designated by the Fund as eligible for the Dividends Received
Deduction. The aggregate amount of Dividends Received Deductions that may be
taken by a corporation is limited to 70% of its taxable income, computed
without regard to any net operating loss deduction. The portion of a dividend
on the APS that can be designated as eligible for the Dividends Received
Deduction will be limited by the fact that dividend income received by the Fund
is allocated to the RPS first, before being allocated to any other class or
series of the Fund&#146;s stock. Dividends on</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>27</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>the APS, the
Existing APS and the Fund&#146;s common stock will be designated as eligible for the
Dividends Received Deduction only to the extent that any qualifying income
remains after dividends are paid on the RPS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
order for dividends effectively designated by the Fund as eligible for the
Dividends Received Deduction to qualify for the Dividends Received Deduction
when received by a particular shareholder, the shareholder must, among other
things, be a corporation meeting the 46-day (or 91-day) holding period
requirement described above with respect to its Fund shares. The Dividends
Received Deduction will be reduced in the case of a shareholder who has
incurred indebtedness, or is treated as having incurred indebtedness, that is
&#147;directly attributable&#148; to the acquisition or carrying of the shares. The basis
of a shareholder&#146;s shares may be reduced in the case of certain &#147;extraordinary
dividends&#148; eligible for the Dividends Received Deduction by an amount equal to
the non-taxed portion of such dividends, although it is expected that such
extraordinary dividends will be paid only in unusual circumstances.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
current law, certain income distributions properly designated and paid by the
Fund to individual taxpayers are taxed at rates equal to those applicable to
net long-term capital gains (15%, or 5% for individuals in the 10% or 15% tax
brackets). This tax treatment applies only if certain holding period
requirements and other requirements are satisfied by the shareholder and the
dividends are attributable to qualified dividends received by the Fund itself.
Corporate taxpayers are taxed at ordinary income tax rates on dividends not
eligible for the Dividends Received Deduction. For this purpose, &#147;qualified
dividends&#148; means dividends received by the Fund from U.S. corporations and
qualifying foreign corporations, provided that the Fund satisfies certain
holding period and other requirements in respect of the stock of such
corporations. As is the case with the Dividends Received Deduction, to the
extent the Fund is required to allocate income eligible for the Dividends
Received Deduction to the RPS, the allocation to the RPS generally will reduce
the dividends on the common stock, the Existing APS and the APS that are eligible
for the special qualified dividend rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
the case of securities lending transactions, payments in lieu of dividends are
not qualified dividends. Dividends received by the Fund from REITs are
qualified dividends eligible for this lower tax rate only in limited
circumstances. These special rules relating to the taxation of ordinary income
dividends from RICs generally apply to taxable years beginning before January
1, 2009. Thereafter, the Fund&#146;s dividends, other than capital gain dividends,
will be fully taxable at ordinary income rates unless further legislative
action is taken.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
dividend will not be treated as qualified dividend income (whether received by
the Fund or paid by the Fund to a shareholder) if (1) the dividend is received
with respect to any share held for fewer than 61 days during the 121-day period
beginning on the date which is 60 days before the date on which such share
becomes ex-dividend with respect to such dividend (or more than 90 days during
the associated 181-day period, in the case of dividends attributable to periods
in excess of 366 days paid with respect to preferred stock), (2) to the extent
that the recipient is under an obligation (whether pursuant to a short sale or
otherwise) to make related payments with respect to positions in substantially
similar or related property or (3) if the recipient elects to have the dividend
treated as investment income for purposes of the limitation on deductibility of
investment interest. Distributions of income by the Fund other than qualified
dividend income and distributions of net realized short-term capital gains (on
stocks held for one year or less) are taxed as ordinary income, at rates
currently up to 35%.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
benefits of the reduced tax rates applicable to long-term capital gains and
qualified dividend income may be impacted by the application of the alternative
minimum tax to individual shareholders.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We
cannot assure you as to what percentage of the dividends paid on the APS, if
any, will consist of qualified dividend income or long-term capital gains, both
of which are taxed at lower rates for individuals than are ordinary income and
short-term capital gains.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Distributions
in excess of the Fund&#146;s earnings and profits will first reduce the adjusted tax
basis of a holder&#146;s shares and, after such adjusted tax basis is reduced to
zero, will constitute capital gain to such holder (assuming the shares are held
as a capital asset). For non-corporate taxpayers, under current law, investment
company taxable income (other than qualified dividend income) currently will be
taxed at a maximum rate of 35%, while net capital gain generally will be taxed
at a maximum rate of 15%. For corporate taxpayers, both investment company
taxable income and net capital gain are taxed at a maximum rate of 35%. For
purposes of determining whether distributions are out of the Fund&#146;s current or
accumulated earnings and profits, the Fund&#146;s earnings and profits will be
allocated first to the Fund&#146;s preferred stock and then to the Fund&#146;s common
stock.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>28</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund may retain for reinvestment all or part of its net capital gain. If any
such gain is retained, the Fund will be subject to a tax at a rate of 35% of
such amount. In that event, the Fund expects to designate the retained amount
as undistributed capital gain in a notice to its shareholders, each of whom (i)
will be required to include in income for tax purposes as long-term capital
gain its share of such undistributed amounts, (ii) will be entitled to credit
its proportionate share of the tax paid by the Fund against its U.S. federal
income tax liability and to claim refunds to the extent that the credit exceeds
such liability and (iii) will increase its basis in its shares of the Fund by
an amount equal to 65% of the amount of undistributed capital gain included in
such shareholder&#146;s gross income.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
price of shares purchased at any time may reflect the amount of a forthcoming
distribution. Those purchasing shares just prior to a distribution will receive
a distribution which will be taxable to them even though it represents in part
a return of invested capital.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
sale, exchange or redemption of Fund shares may give rise to a gain or loss. In
general, any gain or loss realized upon a taxable disposition of shares will be
treated as long-term capital gain or loss if the shares have been held for more
than 12 months. Otherwise, the gain or loss on the taxable disposition of Fund
shares will be treated as short-term capital gain or loss. Long-term capital
gain rates applicable to individuals have been reduced, in general, to 15% (or
5% for individuals in the 10% or 15% rate brackets); however, such reduced
rates are set to expire with respect to taxable years beginning after December
31, 2008 absent further legislative action. The maximum tax rate applicable to
net capital gains recognized by a corporate taxpayer is 35%. Any loss realized
upon the sale or exchange of Fund shares with a holding period of 6 months or
less will be treated as a long-term capital loss to the extent of any capital
gain distributions received with respect to such shares. In addition, all or a
portion of a loss realized on a redemption or other disposition of Fund shares
may be disallowed under &#147;wash sale&#148; rules to the extent the shareholder
acquires other substantially identical shares (whether through the reinvestment
of distributions or otherwise) within the period beginning 30 days before the
redemption of the loss shares and ending 30 days after such date. Any
disallowed loss will result in an adjustment to the shareholder&#146;s tax basis in
some or all of the other shares acquired.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sales
charges paid upon a purchase of shares cannot be taken into account for
purposes of determining gain or loss on a sale of shares before the 91st day
after their purchase to the extent a sales charge is reduced or eliminated in a
subsequent acquisition of shares of the Fund (or of another fund) pursuant to
the reinvestment or exchange privilege. Any disregarded amounts will result in
an adjustment to the shareholder&#146;s tax basis in some or all of any other shares
acquired.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholders
may be entitled to offset their capital gain dividends with capital loss. There
are a number of statutory provisions affecting when capital loss may be offset
against capital gain, and limiting the use of loss from certain investments and
activities. Accordingly, shareholders with capital loss are urged to consult
their tax advisors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
and distributions on the Fund&#146;s shares generally are subject to federal income
tax as described herein to the extent they do not exceed the Fund&#146;s realized
income and gains, even though such dividends and distributions may economically
represent a return of a particular shareholder&#146;s investment. Such distributions
are likely to occur in respect of shares purchased at a time when the Fund&#146;s
net asset value reflects gains that are either unrealized, or realized but not
distributed. Such realized gains may be required to be distributed even when
the Fund&#146;s net asset value also reflects unrealized losses. Certain dividends
declared in October, November or December and paid in the following January
will be taxed to shareholders as if received on December 31 of the year in
which they were declared. In addition, certain other distributions made after
the close of a taxable years of the Fund may be &#147;spilled back&#148; and treated as
paid by the Fund (except for purposes of the 4% excise tax) during such prior
taxable year. In such case, however, shareholders will be treated as having
received such dividends in the taxable year in which the distributions were
actually made.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Amounts
paid by the Fund to individuals and certain other shareholders who have not
provided the Fund with their correct taxpayer identification number (&#147;TIN&#148;) and
certain certifications required by the IRS as well as shareholders with respect
to whom the Fund has received certain information from the IRS or a broker may
be subject to &#147;backup withholding&#148; of federal income tax arising from the
Fund&#146;s taxable dividends and other distributions as well as the gross proceeds
of sales of shares, at a rate equal to the fourth highest rate of tax
applicable to a single individual (currently 28%). An individual&#146;s TIN
generally is his or her social security number. Backup</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>29</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>withholding is
not an additional tax. Any amounts withheld under the backup withholding rules
from payments made to a shareholder may be refunded or credited against such
shareholder&#146;s U.S. federal income tax liability, if any, provided that the
required information is furnished to the IRS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Under
Treasury regulations, if a shareholder recognizes a loss on a disposition of
the Fund&#146;s shares of $2 million or more for an individual shareholder or $10
million or more for a corporate shareholder, the shareholder must file with the
IRS a disclosure statement on Form 8886. Direct shareholders of portfolio
securities are in many cases excepted from this reporting requirement, but
under current guidance, shareholders of a RIC are not excepted. Future guidance
may extend the current exception from this reporting requirement to
shareholders of most or all RICs. The fact that a loss is reportable under
these regulations does not affect the legal determination of whether the
taxpayer&#146;s treatment of the loss is proper. Shareholders should consult their
tax advisors to determine the applicability of these regulations in light of
their particular circumstances.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund will inform shareholders of the source and tax status of all distributions
promptly after the close of each calendar year. The IRS has taken the position
that if a RIC has more than one class of shares, it may designate distributions
made to each class in any year as consisting of no more than that class&#146;s
proportionate share of a particular type of income for that year, including
ordinary income and net capital gain. A class&#146;s proportionate share of a
particular type of income for a year is determined according to the percentage
of total dividends paid by the RIC during that year to the class. The IRS,
however, will not render such designations ineffective for federal income tax
purposes even if it is a disproportionate designation as long as such
designation is made pursuant to a rule described in a registration statement
that was filed with the SEC before June 13, 1989.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund has received a private letter ruling from the IRS that states that the IRS
will respect the Fund&#146;s proposed method of designating income eligible for the
Dividends Received Deduction to the RPS, common stock, the Existing APS and the
APS. More specifically, the IRS will respect the Fund&#146;s designation of income
eligible for the Dividends Received Deduction to the RPS pro rata between
dividend income that is eligible for the Dividends Received Deduction (and that
constitutes qualified dividend income) and dividend income that is eligible for
the Dividends Received Deduction (but does not constitute qualified dividend
income). To the extent any qualifying income remains after dividends are paid
on the RPS, distributions on the common stock, the Existing APS and the APS
will be designated as income eligible for the Dividends Received Deduction on a
pro rata basis between these classes. Dividend income that constitutes qualified
dividend income (but is not eligible for the Dividends Received Deduction) and
net capital gain will be designated to the common stock, the Existing APS and
the APS (and to the RPS to the extent the Fund&#146;s qualified income is less than
the distribution to the RPS) on a pro rata basis among these classes.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
foregoing discussion does not address the special tax rules applicable to
certain classes of investors, such as tax-exempt entities, foreign investors,
insurance companies and financial institutions. Shareholders should consult
their own tax advisors with respect to special tax rules that may apply in
their particular situations, as well as the state, local and, where applicable,
foreign tax consequences of investing in the Fund.</FONT></P>

<P ALIGN=CENTER><A NAME=B008></A><FONT SIZE=2><B>EXPERTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
statement of assets and liabilities of the Fund as of December 31, 2005
including the schedule of investments as of December 31, 2005 and the related
statements of operations and cash flows for the year then ended and the
statement of changes in net assets for each of the two years in the period then
ended and the financial highlights for each of the four years in the period
then ended, incorporated by reference in this Statement of Additional
Information, have been audited by Ernst &amp; Young LLP, independent registered
public accounting firm, as set forth in their report thereon appearing
elsewhere herein, and are incorporated by reference in reliance upon such
report given upon the authority of such firm as experts in accounting and
auditing. Ernst &amp; Young LLP, located at 233 South Wacker Drive, Chicago,
Illinois 60606, provides accounting and auditing services to the Fund.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>30</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=B009></A><FONT SIZE=2><B>ADDITIONAL
INFORMATION</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
Registration Statement on Form N-2, including amendments thereto, relating to
the shares offered hereby, has been filed by the Fund with the SEC in
Washington, D.C. The prospectus and this Statement of Additional Information do
not contain all of the information set forth in the Registration Statement,
including any exhibits and schedules thereto. For further information with
respect to the Fund and the shares offered hereby, reference is made to the
Registration Statement. Statements contained in the prospectus and this
Statement of Additional Information as to the contents of any contract or other
document referred to are not necessarily complete and in each instance
reference is made to the copy of such contract or other document filed as an
exhibit to the Registration Statement, each such statement being qualified in
all respects by such reference. A copy of the Registration Statement may be
inspected without charge at the SEC&#146;s principal office in Washington, D.C., and
copies of all or any part thereof may be obtained from the SEC upon the payment
of certain fees prescribed by the SEC. The Fund files its complete schedule of
portfolio holdings for the first and third quarter of its fiscal year with the
SEC on Form N-Q. The Fund&#146;s Form N-Q will be available on the SEC&#146;s website at
http://www.sec.gov. The Fund&#146;s Form N-Q, when available, may be reviewed and
copied at the SEC&#146;s Public Reference Room in Washington, D.C.. Information
regarding the operation of the Public Reference Room may be obtained by calling
1-800-SEC-0330. The Fund&#146;s Form N-Q, when available, may also be obtained, upon
request, by calling (800) 699-1236.</FONT></P>

<P ALIGN=CENTER><A NAME=B010></A><FONT SIZE=2><B>FINANCIAL
STATEMENTS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
audited financial statements listed below are incorporated herein by reference
from the Fund&#146;s Annual Report to Shareholders for the year ended December 31,
2005 as filed with the SEC on Form N-CSR on March 2, 2006 (no. 811-4915). All
other portions of the Annual Report to Shareholders on Form N-CSR are not
incorporated herein by reference and are not part of this SAI.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Report of
  independent registered public accountants</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Schedule of
  Investments at December 31, 2005</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement of
  Assets and Liabilities at December 31, 2005</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement of
  Operations for the year ended December 31, 2005</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement of
  Changes in Net Assets for the years ended December 31, 2005 and 2004</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Statement of
  Cash Flows for the year ended December 31, 2005</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Notes to
  Financial Statements</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&#151;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>Financial
  Highlights - Selected Per Share Data and Ratios</FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Copies
of the Fund&#146;s Annual and Semi-Annual Reports to Shareholders may be obtained
without charge by writing to the Fund at its address at 55 East Monroe Street,
Suite 3600, Chicago, Illinois 60603 or by calling (800) 699-1236. The Fund&#146;s
Annual Report and Semi-Annual Report to Shareholders are also available on the
Fund&#146;s website at http://www.dnpselectincome.com.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>31</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=B011></A><FONT SIZE=2><B>APPENDIX A</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>DNP SELECT INCOME FUND INC.</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Form of Articles Supplementary Creating
Series T and Series R of</B></FONT></P>

<P ALIGN=CENTER><FONT SIZE=2><B>Auction Preferred Stock</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DNP
SELECT INCOME FUND INC., a Maryland corporation having its principal Maryland
office in the City of Baltimore (the &#147;Fund&#148;), certifies to the State Department
of Assessments and Taxation of Maryland that:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;FIRST:
Pursuant to authority expressly vested in the Board of Directors of the Fund by
Article FIFTH of its charter (which as hereafter amended, restated and
supplemented from time to time is referred to herein, together with these
Articles Supplementary, as the &#147;Charter&#148;), the Board of Directors has
classified out of the Fund&#146;s authorized and unissued preferred stock and has
authorized the creation and issuance of two series of 4,000 shares each of
Auction Preferred Stock, par value $.001 per share, liquidation preference
$25,000 per share, designated respectively: Auction Preferred Stock, Series T;
and Auction Preferred Stock, Series R (each such series being referred to
herein as a series of APS, and all such series, together with the previously
issued Auction Preferred Stock, Series M, Auction Preferred Stock, Series W and
Auction Preferred Stock, Series F, and any additional series of Auction
Preferred Stock that may be classified and designated by the Board of Directors
of the Fund as provided herein, being referred to collectively as APS).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;SECOND:
The preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of
redemption, of the APS are as follows:</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>DESIGNATION</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AUCTION
PREFERRED STOCK, SERIES T: A series of 4,000 shares of preferred stock, par value
$.001 per share, liquidation preference $25,000 per share plus accumulated but
unpaid dividends, if any, thereon (whether or not earned or declared), is
hereby designated &#147;Auction Preferred Stock, Series T.&#148; Each share of Auction
Preferred Stock, Series T shall be issued on a Date of Original Issue (as
herein defined) to be determined by the Board of Directors of the Fund or a
duly authorized committee thereof; have an Initial Dividend Rate, Initial
Dividend Payment Date and Subsequent Dividend Payment Day (each as herein
defined) to be determined by the Board of Directors of the Fund or a duly
authorized committee thereof; and have such other preferences, limitations and
relative voting rights, in addition to those required by applicable law or set
forth in the Charter applicable to preferred stock of the Fund, as are set
forth in Part I and Part II of these Articles Supplementary. The Auction
Preferred Stock, Series T shall constitute a separate series of preferred stock
of the Fund, and each share of Auction Preferred Stock, Series T shall be
identical.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;AUCTION
PREFERRED STOCK, SERIES R: A series of 4,000 shares of preferred stock, par
value $.001 per share, liquidation preference $25,000 per share plus
accumulated but unpaid dividends, if any, thereon (whether or not earned or
declared), is hereby designated &#147;Auction Preferred Stock, Series R.&#148; Each share
of Auction Preferred Stock, Series R shall be issued on a Date of Original
Issue (as herein defined) to be determined by the Board of Directors of the
Fund or a duly authorized committee thereof; have an Initial Dividend Rate,
Initial Dividend Payment Date and Subsequent Dividend Payment Day (each as
herein defined) to be determined by the Board of Directors of the Fund or a
duly authorized committee thereof; and have such other preferences, limitations
and relative voting rights, in addition to those required by applicable law or
set forth in the Charter applicable to preferred stock of the Fund, as are set
forth in Part I and Part II of these Articles Supplementary. The Auction
Preferred Stock, Series R shall constitute a separate series of preferred stock
of the Fund, and each share of Auction Preferred Stock, Series R shall be
identical.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Board of Directors of the Fund may, in the future, by resolution duly adopted,
without shareholder approval (except as otherwise provided by these Articles
Supplementary or required by applicable law), classify additional shares out of
the Fund&#146;s authorized and unissued preferred stock as one or more additional
series of Auction Preferred Stock, with the same preferences, rights, voting
powers, restrictions, limitations as to dividends, qualifications and terms and
conditions of redemption and other terms herein described, except that the Date
of Original Issue, Initial Dividend Rate and Initial Dividend Payment Date of
shares of each such additional series, and any other changes in the terms
herein set forth, shall be as set forth in the Articles Supplementary with
respect to such additional series.</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>A-1</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>



<P ALIGN=CENTER><FONT SIZE=2><B>TABLE OF CONTENTS</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
 <TR style="font-size:1px">
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="80%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="6%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Page</B></FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C001">DEFINITIONS</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-4</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C002">PART I.</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-14</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C003">Ranking</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-14</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C004">Dividends</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-14</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C005">Designation of Special Dividend Periods</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-17</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C006">Voting Rights</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-18</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C007">Investment Company Act Preferred Stock Asset Coverage</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-20</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C008">Preferred Stock Basic Maintenance Coverage</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-21</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C009">Restrictions on Dividends and Other Distributions</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-22</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C010">Redemption</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-22</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>9.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C011">Liquidation Rights</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-25</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>10.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C012">Certain Rating Agency Requirements and Restrictions</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-26</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>11.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C013">Miscellaneous</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-26</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C014">PART II.</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-27</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>1.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C015">Orders</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-27</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>2.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C016">Submission of Orders by Broker-Dealers to Auction Agent</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-28</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>3.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C017">Determination of Sufficient Clearing Bids, Winning Bids Rate and
  Applicable Dividend Rate</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-29</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>4.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C018">Acceptance and Rejection of Submitted Bids and Submitted Sell
  Orders and Allocation of Shares</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-31</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>5.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C019">Auction Agent</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-32</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>6.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C020">Transfer of APS</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-33</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>7.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C021">Global Certificate</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-33</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>8.</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2><A    HREF="#C022">Force Majeure</A></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>A-33</FONT></P>
  </TD>
 </TR>
</TABLE>

<P ALIGN=CENTER><FONT  SIZE=2>A-2</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A  NAME=C001></A><FONT SIZE=2><B>DEFINITIONS</B></FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As
used in Parts I and II of these Articles Supplementary, the following terms
shall have the following meanings (with terms defined in the singular having
comparable meanings when used in the plural and vice versa), unless the context
otherwise requires:</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)
&#147;ACCOUNTANT&#146;S CONFIRMATION&#148; shall have the meaning specified in paragraph (c)
of Section 6 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)
&#147;AFFILIATE&#148; means, for purposes of the definition of &#147;Outstanding,&#148; any Person
known to the Auction Agent to be controlled by, in control of or under common
control with the Fund; <I>provided, however, </I>that
no Broker-Dealer controlled by, in control of or under common control with the
Fund shall be deemed to be an Affiliate nor shall any corporation or any Person
controlled by, in control of or under common control with such corporation, one
of the trustees, directors or executive officers of which is a director of the
Fund, be deemed to be an Affiliate solely because such trustee, director or
executive officer is also a director of the Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)
&#147;AGENT MEMBER&#148; means a member of or participant in the Securities Depository
that will act on behalf of a Bidder.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)
&#147;ALL HOLD RATE&#148; means 80% of the Reference Rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)
&#147;ANNUAL VALUATION DATE&#148; means, for so long as any shares of APS are
outstanding, December 31 of each year, or, if such day is not a Valuation Date,
the next preceding Valuation Date.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)
&#147;APPLICABLE DIVIDEND RATE&#148; shall have the meaning specified in subparagraph
(d)(i)(D) of Section 2 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)
&#147;APPLICABLE PERCENTAGE&#148; means the percentage determined based on the credit
rating assigned to the series of APS on such date by Moody&#146;s (if Moody&#146;s is
then rating the APS) and S&amp;P (if S&amp;P is then rating the APS) as
follows:</FONT></P>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="50%">
 <TR style="font-size:1px">
  <TD WIDTH="28%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="26%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="12%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Credit Ratings</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM >
  <P ALIGN=CENTER><FONT SIZE="1"><B>Applicable</B> </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Moody&#146;s</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>S&amp;P</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Percentage</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Aaa</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>AAA</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>125</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Aa3
  to Aa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>AA-
  to AA+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>150</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A3
  to A1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A-
  to A+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>200</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Baa3
  to Baa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>BBB-
  to BBB+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Ba1
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>BB+
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>300</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>



<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
purposes of this definition, the &#147;prevailing rating&#148; of shares of a series of
preferred stock shall be (i) If not Aaa/AAA, then Aa3/AA- or higher if such
shares have a rating of Aa3 or better by Moody&#146;s and AA- or better by S&amp;P
or the equivalent of such ratings by such agencies or a Substitute Rating
Agency or Substitute Rating Agencies selected as provided below, (ii) if not
Aa3/AA- or higher, then A3/A- if such shares have a rating of A3 or better by
Moody&#146;s and A- or better by S&amp;P or the equivalent of such ratings by such
agencies or a Substitute Rating Agency or Substitute Rating Agencies selected
as provided below, (iii) if not A3/A- or higher, then Baa3/BBB- if such shares
have a rating of Baa3 or better by Moody&#146;s and BBB- or better by S&amp;P or the
equivalent of such ratings by such agencies or a Substitute Rating Agency or
Substitute Rating Agencies selected as provided below.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Applicable Percentage as so determined shall be further subject to upward but
not downward adjustment in the discretion of the Board of Directors after
consultation with the Broker-Dealers, provided that immediately following any
such increase the Fund would be in compliance with the Preferred Stock Basic
Maintenance Amount. The Fund shall take all reasonable action necessary to
enable either Moody&#146;s or S&amp;P to provide a rating for each series of APS. If
neither Moody&#146;s nor S&amp;P shall make such a rating available, the Fund shall
select one or more Substitute Rating Agencies.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-3</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)
&#147;APPLICABLE SPREAD&#148; means:</FONT></P>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="60%">
 <TR style="font-size:1px">
  <TD WIDTH="43%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="22%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="14%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="5%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Credit Ratings</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE="1"><B>Applicable</B> </FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Moody&#146;s</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>S&amp;P</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Spread</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Aaa</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>AAA</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>125 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Aa3
  to Aa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>AA-
  to AA+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>150 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A3
  to A1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A-
  to A+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>200 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Baa3
  to Baa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>BBB-
  to BBB+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>250 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Ba1
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>BB+
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>300 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>



<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)
&#147;APPLICABLE SPREAD OVER THE REFERENCE RATE&#148; means the rate equaling the sum of
the Applicable Spread plus the Reference Rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)
&#147;APS&#148; shall have the meaning set forth on the first page of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)
&#147;AUCTION&#148; means each periodic implementation of the Auction Procedures.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)
&#147;AUCTION AGENCY AGREEMENT&#148; means the agreement between the Fund and the Auction
Agent which provides, among other things, that the Auction Agent will follow
the Auction Procedures for purposes of determining the Applicable Dividend Rate
for shares of a series of APS so long as the Applicable Dividend Rate for
shares of such series is to be based on the results of an Auction.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)
&#147;AUCTION AGENT&#148; means the entity appointed as such by a resolution of the Board
of Directors in accordance with Section 5 of Part II of these Articles
Supplementary. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)
&#147;AUCTION DATE,&#148; with respect to any Subsequent Dividend Period, means the
Business Day next preceding the first day of such Subsequent Dividend Period.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)
&#147;AUCTION PROCEDURES&#148; means the procedures for conducting Auctions set forth in
Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)
&#147;AVAILABLE APS&#148; shall have the meaning specified in subparagraph (a)(i) of
Section 3 of Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)
&#147;BENEFICIAL OWNER,&#148; with respect to shares of a series of APS, means a customer
of a Broker-Dealer who is listed on the records of that Broker-Dealer (or, if
applicable, the Auction Agent) as a holder of shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)
&#147;BID&#148; and &#147;BIDS&#148; shall have the respective meanings specified in paragraph (a)
of Section 1 of Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)
&#147;BIDDER&#148; and &#147;BIDDERS&#148; shall have the respective meanings specified in
paragraph (a) of Section 1 of Part II of these Articles Supplementary;
provided, however, that neither the Fund nor any affiliate thereof shall be
permitted to be a Bidder in an Auction, except that any Broker-Dealer that is
an affiliate of the Fund may be a Bidder in an Auction, but only if the Orders
placed by such Broker-Dealer are not for its own account.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)
&#147;BOARD OF DIRECTORS&#148; means the Board of Directors of the Fund or any duly
authorized committee thereof.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)
&#147;BROKER-DEALER&#148; means any broker-dealer, commercial bank or other entity
permitted by law to perform the functions required of a Broker-Dealer in Part
II of these Articles Supplementary, that is a member of, or a participant in,
the Securities Depository or is an affiliate of such member or participant, has
been selected by the Fund (with the consent of&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;  &nbsp;&nbsp;,
which consent shall not be unreasonably withheld or delayed) and has entered
into a Broker-Dealer Agreement that remains effective.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)
&#147;BROKER-DEALER AGREEMENT&#148; means an agreement among the Fund, the Auction Agent
and a Broker-Dealer pursuant to which such Broker-Dealer agrees to follow the
procedures specified in Part II of these Articles Supplementary.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-4</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23)
&#147;BUSINESS DAY&#148; means a day on which the New York Stock Exchange is open for
trading and which is neither a Saturday, Sunday nor any other day on which
banks in The City of New York, New York, are authorized by law to close.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24)
&#147;CODE&#148; means the Internal Revenue Code of 1986, as amended.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25)
&#147;COMMON STOCK&#148; means the common stock, par value $.001 per share, of the Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(26)
&#147;CURE DATE&#148; means the Preferred Stock Basic Maintenance Cure Date or the
Investment Company Act Cure Date, as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(27)
&#147;DATE OF ORIGINAL ISSUE,&#148; with respect to shares of a series of APS, means the
date on which the Fund initially issued such shares.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(28)
&#147;DISCOUNT FACTOR&#148; means a Moody&#146;s Discount Factor (if Moody&#146;s is then rating
the APS), an S&amp;P Discount Factor (if S&amp;P is then rating the APS) or a
Substitute Rating Agency Discount Factor (if a Substitute Rating Agency is then
rating the APS), as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(29)
&#147;DISCOUNTED VALUE,&#148; with respect to any asset held by the Fund as of any date,
means the Moody&#146;s Discounted Value of such asset (if Moody&#146;s is then rating the
APS), the S&amp;P Discounted Value of such asset (if S&amp;P is then rating the
APS) or a Substitute Rating Agency Discounted Value of such asset (if a
Substitute Rating Agency is then rating the APS), as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(30)
&#147;DIVIDEND PAYMENT DATE,&#148; with respect to shares of a series of APS, means any
date on which dividends are payable on shares of such series pursuant to the
provisions of paragraph (c) of Section 2 of Part I of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(31)
&#147;DIVIDEND PERIOD,&#148; with respect to shares of a series of APS, means the period
from and including the Date of Original Issue of shares of such series to, but
excluding, the initial Dividend Payment Date for shares of such series and any
period thereafter from, and including, one Dividend Payment Date for shares of
such series to, but excluding, the next succeeding Dividend Payment Date for
shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(32)
&#147;ELIGIBLE ASSET&#148; means a Moody&#146;s Eligible Asset (if Moody&#146;s is then rating the
APS), an S&amp;P Eligible Asset (if S&amp;P is then rating the APS) or a
Substitute Rating Agency Eligible Asset (if a Substitute Rating Agency is then
rating the APS), as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(33)
&#147;EXISTING HOLDER,&#148; with respect to shares of a series of APS, means a
Broker-Dealer (or any such other Person as may be permitted by the Fund) that
is listed on the records of the Auction Agent as a holder of shares of such
series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(34)
&#147;FAILURE TO DEPOSIT,&#148; with respect to shares of a series of APS, means a
failure by the Fund to pay to the Auction Agent, not later than 12:00 noon, New
York City time, (A) on any Dividend Payment Date for shares of such series, in
funds available on such Dividend Payment Date in The City of New York, New
York, the full amount of any dividend (whether or not earned or declared) to be
paid on such Dividend Payment Date on any share of such series or (B) on the
Business Day next preceding any redemption date in funds available on such
redemption date for shares of such series in The City of New York, New York,
the Redemption Price to be paid on such redemption date for any share of such
series after notice of redemption is mailed pursuant to paragraph (c) of
Section 8 of Part I of these Articles Supplementary; provided, however, that
the foregoing clause (B) shall not apply to the Fund&#146;s failure to pay the
Redemption Price in respect of shares of a series of APS when the related
Notice of Redemption provides that redemption of such shares is subject to one
or more conditions precedent until any such condition precedent shall not have
been satisfied at the time or times and in the manner specified in such Notice
of Redemption.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(35)
&#147;FITCH&#148; means Fitch, Inc. and its successors at law.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(36)
&#147;FUND&#148; means the entity named on the first page of these Articles
Supplementary, which is the issuer of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(37)
&#147;HOLDER,&#148; with respect to shares of a series of APS, means the registered
holder of such shares as the same appears on the record books of the Fund.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-5</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(38)
&#147;HOLD ORDER&#148; and &#147;HOLD ORDERS&#148; shall have the respective meanings specified in
paragraph (a) of Section 1 of Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(39)
&#147;INDEPENDENT ACCOUNTANT&#148; means a nationally recognized registered public
accounting firm that is independent with respect to the Fund under the auditor
independence rules promulgated by the Securities and Exchange Commission.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(40)
&#147;INITIAL DIVIDEND PAYMENT DATE,&#148; with respect to shares of a series of APS,
shall be a date determined by the Board of Directors or a duly authorized
committee thereof in connection with the initial issuance of shares of such
series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(41)
&#147;INITIAL DIVIDEND PERIOD,&#148; with respect to shares of a series of APS, means the
period from and including the Date of Original Issue thereof to, but excluding,
the Initial Dividend Payment Date for shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(42)
&#147;INITIAL DIVIDEND RATE,&#148; with respect to shares of a series of APS, shall be a
rate determined by the Board of Directors or a duly authorized committee
thereof in connection with the initial issuance of shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(43)
&#147;INITIAL PREFERRED DIRECTORS&#148; means the two directors of the Fund designated by
the Board of Directors, in connection with the first issuance of Preferred
Stock by the Fund, to represent the holders of Preferred Stock.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(44)
&#147;INVESTMENT COMPANY ACT&#148; means the Investment Company Act of 1940, as amended
from time to time.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(45)
&#147;INVESTMENT COMPANY ACT CURE DATE,&#148; with respect to the failure by the Fund to
maintain the Investment Company Act Preferred Stock Asset Coverage (as required
by Section 5 of Part I of these Articles Supplementary) as of the last Business
Day of each month, means the last Business Day of the following month.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(46)
&#147;INVESTMENT COMPANY ACT PREFERRED STOCK ASSET COVERAGE&#148; means asset coverage,
as defined in Section 18(h) of the Investment Company Act, of at least 200%
with respect to all outstanding senior securities of the Fund which are stock,
including all outstanding shares of any series of APS (or such other asset
coverage as may in the future be specified in or under the Investment Company
Act as the minimum asset coverage for senior securities which are stock of a
closed-end investment company as a condition of declaring dividends on its
common stock).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(47)
&#147;LATE CHARGE&#148; shall have the meaning specified in subparagraph (d)(i)(B) of
Section 2 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48)
&#147;LIBOR&#148; means the London Interbank Offered Rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(49)
&#147;LIBOR DEALERS&#148; means
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;and
such other dealer or dealers as the Fund may from time to time appoint, or, in
lieu of any thereof, their respective affiliates or successors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(50)
&#147;LIBOR RATE&#148; means on any Auction Date (i) the rate for deposits in U.S.
dollars for the designated Dividend Period, which appears on display page 3750
of Moneyline&#146;s Telerate Service (&#147;Telerate Page 3750&#148;) (or such other page as
may replace that page on that service, or such other service as may be selected
by the LIBOR Dealer or its successors that are LIBOR Dealers) as of 11:00 a.m.,
London Time, on the date that is the London Business Day preceding the Auction
Date (the &#147;LIBOR Determination Date&#148;), or (ii) if such rate does not appear on
Telerate Page 3750 or such other page as may replace such Telerate Page 3750,
(A) the LIBOR Dealer shall determine the arithmetic mean for the offered
quotations of the Reference Banks to leading banks in the London interbank
market for deposits in U.S. dollars for the designated Dividend Period in an
amount determined by such LIBOR dealer by reference to requests for quotations
as of approximately 11:00 a.m. (London time) on such date made by such LIBOR
Dealer to the Reference Banks, (B) if at least two of the Reference Banks
provide such quotations, LIBOR Rate shall equal such arithmetic mean of such
quotations, (C) if only one or none of the Reference Banks provide such
quotations, LIBOR rate shall be deemed to be the arithmetic mean of the offered
quotations that leading banks in The City of New York selected by the LIBOR
Dealer (after obtaining the Fund&#146;s approval) are quoting on the relevant LIBOR
Determination Date for deposits in U.S. dollars for the designated Dividend
Period in an amount determined by the LIBOR Dealer (after obtaining the Fund&#146;s
approval) that is representative of a</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-6</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>single
transaction in such market at such time by reference to the principal London
offices of leading banks in the London interbank market; <I>provided, however, </I>that if one of the
LIBOR Dealers does not quote a rate required to determine the LIBOR Rate, the
LIBOR Rate will be determined on the basis of the quotation or quotations
furnished by any Substitute LIBOR Dealer or Substitute LIBOR Dealers selected
by the Fund to provide such rate or rates not being supplied by the LIBOR
Dealer; <I>provided, further, </I>that
if the LIBOR Dealer and Substitute LIBOR Dealers are required but unable to
determine a rate in accordance with at least one of the procedures provided
above, LIBOR Rate shall be LIBOR Rate as determined on the previous Auction
Date. If the number of Dividend Period days shall be (i) 7 days or more, but
fewer than 21 days, such rate shall be the seven-day LIBOR rate; (ii) 21 days
or more, but fewer than 49 days, such rate shall be the one-month LIBOR rate;
(iii) 49 days or more but fewer than 77 days, such rate shall be the two-month
LIBOR rate; (iv) 77 days or more, but fewer than 112 days, such rate shall be
the three-month LIBOR rate; (v) 112 days or more, but fewer than 140 days, such
rate shall be the four-month LIBOR rate; (vi) 140 days or more, but fewer than
168 days, such rate shall be the five-month LIBOR rate; (vii) 168 days or more,
but fewer than 189 days, such rate shall be the six-month LIBOR rate; (viii)
189 days or more, but fewer than 217 days, such rate shall be the seven-month
LIBOR rate; (ix) 217 days or more, but fewer than 252 days, such rate shall be
the eight-month LIBOR rate; (x) 252 days or more, but fewer than 287 days, such
rate shall be the nine-month LIBOR rate; (xi) 287 days or more, but fewer than
315 days, such rate shall be the ten-month LIBOR rate; (xii) 315 days or more,
but fewer than 343 days, such rate shall be the eleven-month LIBOR rate; and
(xiii) 343 days or more, but fewer than 365 days, such rate shall be the
twelve-month LIBOR rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(51)
&#147;LIQUIDATION PREFERENCE,&#148; with respect to a given number of shares of a series
of APS, means $25,000 times that number.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(52)
&#147;LONDON BUSINESS DAY&#148; means any day on which commercial banks are generally
open for business in London.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(53)
&#147;MARKET VALUE&#148; means the Moody&#146;s Market Value (if Moody&#146;s is then rating the
APS), the S&amp;P Market Value (if S&amp;P is then rating the APS) or a
Substitute Rating Agency Market Value (if a Substitute Rating Agency is then
rating the APS), as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(54)
&#147;MAXIMUM DIVIDEND RATE,&#148; for any Dividend Period will be the higher of the
Applicable Percentage of the Reference Rate or the Applicable Spread Over the
Reference Rate. The Applicable Percentage will be determined based on the
credit rating assigned on such date to such shares by S&amp;P and Moody&#146;s (or
if S&amp;P or Moody&#146;s shall not make such rating available, the equivalent of
such rating by a Substitute Rating Agency) as follows:</FONT></P>





<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="69%">
 <TR style="font-size:1px">
  <TD WIDTH="38%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="18%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="3%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="2%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Credit Ratings</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Applicable<BR>
  Percentage</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  COLSPAN="3" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>of the</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Applicable</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Moody&#146;s</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>S&amp;P</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Reference Rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Spread</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Aaa</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>AAA</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>125</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>125 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Aa3
  to Aa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>AA-
  to AA+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>150</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>150 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A3
  to A1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>A-
  to A+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>200</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>200 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>Baa3
  to Baa1</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>BBB-
  to BBB+</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>250</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>250 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>Ba1
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>BB+
  and lower</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>300</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>300 bps</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assuming
the Fund maintains an AAA/Aaa rating on the APS, the practical effect of the
different methods used to calculate the Maximum Dividend Rate is shown in the
table below:</FONT></P>



<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="68%">
 <TR style="font-size:1px">
  <TD WIDTH="20%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="11%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="9%" VALIGN=BOTTOM>
  <P ALIGN=RIGHT>&nbsp;</P>
  </TD>
  <TD WIDTH="8%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="4%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
  <TD WIDTH="19%" VALIGN=BOTTOM>
  <P ALIGN=CENTER>&nbsp;</P>
  </TD>
  <TD WIDTH="1%" VALIGN=BOTTOM>
  <P>&nbsp;</P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Reference<BR>
  Rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Maximum<BR>
  Dividend<BR>
  Rate Using<BR>
  the Applicable<BR>
  Percentage of the<BR>
  Reference Rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Maximum<BR>
  Dividend Rate<BR>
  Using the<BR>
  Applicable<BR>
  Spread Over the<BR>
  Reference Rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1><B>Method Used<BR>
  to Determine<BR>
  the Maximum<BR>
  Dividend Rate</B></FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="4" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  COLSPAN="2" VALIGN=BOTTOM>
  <HR SIZE=1 WIDTH="100%" NOSHADE COLOR=BLACK ALIGN=CENTER>

  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>1%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>1.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>2.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>Spread</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>2%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>2.50</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>3.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>Spread</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>3%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>3.75</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>4.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>Spread</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>4%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>5.00</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>5.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>Spread</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>5%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>6.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=RIGHT><FONT SIZE=2>6.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P ALIGN=CENTER><FONT SIZE=2>Either</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM BGCOLOR="#E6E6E6">
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
 <TR>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>6%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>7.50</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=RIGHT><FONT SIZE=2>7.25</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=2>%</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P ALIGN=CENTER><FONT SIZE=2>Percentage</FONT></P>
  </TD>
  <TD  VALIGN=BOTTOM>
  <P><FONT SIZE=1>&nbsp;</FONT></P>
  </TD>
 </TR>
</TABLE>



<P ALIGN=CENTER><FONT  SIZE=2>A-7</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
Fund shall take all reasonable action necessary to enable S&amp;P and Moody&#146;s
to provide a rating for each series of APS. If S&amp;P or Moody&#146;s shall not
make such a rating available, DNP Select Income Fund Inc. or its affiliates and
successors, after consultation with the Fund and the Broker-Dealers, shall
select a nationally recognized statistical rating organization to act as a
Substitute Rating Agency.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(55)
&#147;MOODY&#146;S&#148; means Moody&#146;s Investors Service, Inc., a Delaware corporation, and
its successors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(56)
&#147;MOODY&#146;S DISCOUNTED VALUE,&#148; with respect to any asset held by the Fund as of
any date, means, except as may be otherwise provided in the definition of
&#147;Discounted Value&#148; set forth in the Moody&#146;s Guidelines, the quotient of the
Market Value of such asset divided by the applicable Moody&#146;s Discount Factor; <I>provided, however, </I>that any asset as to
which there is no Moody&#146;s Discount Factor shall have a Moody&#146;s Discounted Value
of zero. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(57)
&#147;MOODY&#146;S DISCOUNT FACTORS&#148; means the discount factors set forth in the Moody&#146;s
Guidelines for use in calculating the Moody&#146;s Discounted Value of the Fund&#146;s
assets in connection with Moody&#146;s rating of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(58)
&#147;MOODY&#146;S ELIGIBLE ASSETS&#148; means assets of the Fund set forth in the Moody&#146;s
Guidelines as &#147;Eligible Assets&#148; for purposes of determining maintenance of the
Moody&#146;s Preferred Stock Basic Maintenance Amount in connection with Moody&#146;s
rating of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(59)
&#147;MOODY&#146;S GUIDELINES&#148; means that certain document entitled &#147;Moody&#146;s Preferred
Stock Guidelines&#148;
and adopted by the Board of Directors as of the date hereof; <I>provided, however, </I>that any of the
provisions of said document may from time to time be amended, altered or
repealed by the Board of Directors in its sole discretion, without any vote or
consent of shareholders of the Fund, based on a determination by the Board of
Directors that such action is necessary or appropriate in connection with
obtaining or maintaining the rating assigned by Moody&#146;s to the APS or revising
the Fund&#146;s investment restrictions or policies consistent with guidelines
adopted by Moody&#146;s, and any such amendment, alteration or repeal will not be
deemed to affect the preferences, rights or powers of the APS or the Holders
thereof, provided that the Board of Directors receives written confirmation
from Moody&#146;s that any such amendment, alteration or repeal would not adversely
affect the rating then assigned by Moody&#146;s to the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(60)
&#147;MOODY&#146;S MARKET VALUE,&#148; with respect to any asset of the Fund, means the amount
set forth in the Moody&#146;s Guidelines as the &#147;Market Value&#148; of such asset.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(61)
&#147;MOODY&#146;S PREFERRED STOCK BASIC MAINTENANCE AMOUNT&#148; means the amount set forth
in the Moody&#146;s Guidelines as the &#147;Preferred Stock Basic Maintenance Amount.&#148;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(62)
&#147;NOTICE OF REDEMPTION&#148; means any notice with respect to the redemption of
shares of a series of APS pursuant to paragraph (c) of Section 8 of Part I of
these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(63)
&#147;NOTICE OF SPECIAL DIVIDEND PERIOD&#148; means any notice with respect to a Special
Dividend Period of shares of a series of APS pursuant to subparagraph (d)(i) of
Section 3 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(64)
&#147;ORDER&#148; and &#147;ORDERS&#148; shall have the respective meanings specified in paragraph
(a) of Section 1 of Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(65)
&#147;OUTSTANDING&#148; means, as of any Auction Date with respect to shares of a series
of APS, the number of shares of such series theretofore issued by the Fund
except, without duplication, (i) any shares of such series theretofore
cancelled or delivered to the Auction Agent for cancellation or redeemed by the
Fund, (ii) any shares of such series as to which the Fund or any Affiliate
thereof shall be an Existing Holder and (iii) any shares of such series
represented by any certificate in lieu of which a new certificate has been
executed and delivered by the Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(66)
&#147;PAYING AGENT&#148; means The Bank of New York, unless and until another entity
appointed by a resolution of the Board of Directors enters into an agreement
with the Fund to serve as paying agent with respect to the APS, which Paying
Agent may be the same as the Auction Agent.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-8</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(67)
&#147;PERSON&#148; means and includes an individual, a partnership, a corporation, a
trust, an unincorporated association, a joint venture or other entity or a
government or any agency or political subdivision thereof.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(68)
&#147;POTENTIAL BENEFICIAL OWNER,&#148; with respect to shares of a series of APS, means
a customer of a Broker-Dealer that is not a Beneficial Owner of shares of such
series but that wishes to purchase shares of such series, or that is a
Beneficial Owner of shares of such series that wishes to purchase additional
shares of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(69)
&#147;POTENTIAL HOLDER&#148; means any Broker-Dealer or any such other Person as may be
permitted by the Fund, including any Existing Holder, who may be interested in
acquiring APS (or, in the case of an Existing Holder, additional APS).</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(70)
&#147;PREFERRED DIRECTOR&#148; means the Initial Preferred Directors and the Subsequent
Preferred Directors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(71)
&#147;PREFERRED STOCK&#148; means the preferred stock, par value $.001 per share, of the
Fund.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(72)
&#147;PREFERRED STOCK BASIC MAINTENANCE AMOUNT&#148; means the Moody&#146;s Preferred Stock
Basic Maintenance Amount (if Moody&#146;s is then rating the APS), the S&amp;P
Preferred Stock Basic Maintenance Amount (if S&amp;P is then rating the APS) or
a Substitute Rating Agency Basic Maintenance Amount (if a Substitute Rating
Agency is then rating the APS), as the case may be.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(73)
&#147;PREFERRED STOCK BASIC MAINTENANCE CURE DATE,&#148; with respect to the failure by
the Fund to satisfy any Preferred Stock Basic Maintenance Amount (as required
by Section 6 of Part I of these Articles Supplementary) as of a given Valuation
Date, means the eighth Business Day following such Valuation Date.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(74)
&#147;PREFERRED STOCK BASIC MAINTENANCE REPORT&#148; means a report signed by the
President, Treasurer or any Senior Vice President or Vice President of the Fund
which sets forth, as of any Valuation Date, the assets of the Fund, the Market
Value and the Discounted Value thereof (seriatim and in aggregate) and each
Preferred Stock Basic Maintenance Amount.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(75)
&#147;RATING AGENCIES&#148; means S&amp;P and Moody&#146;s for so long as S&amp;P and Moody&#146;s
issue ratings for the APS, and, at such time as S&amp;P and/or Moody&#146;s no
longer issues a rating for the APS, the Substitute Rating Agency or Substitute
Rating Agencies, as the case may be. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(76)
&#147;REDEMPTION PRICE&#148; means the applicable redemption price specified in paragraph
(a) or (b) of Section 8 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(77)
&#147;REFERENCE BANKS&#148; means four major banks in the London interbank market
selected by &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;or its affiliates or successors or such other party as the Fund may
from time to tome appoint.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(78)
&#147;REFERENCE RATE&#148; means (i) with respect to a Standard Dividend Period or a
Special Dividend Period having 364 or fewer days, the applicable LIBOR Rate and
(ii) with respect to a Special Dividend Period having 365 or more days, the
applicable U.S. Treasury Note Rate.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(79)
&#147;S&amp;P&#148; means Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies,
Inc., and its successors.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(80)
&#147;S&amp;P DISCOUNTED VALUE,&#148; with respect to any asset held by the Fund as of
any date, means, except as may be otherwise provided in the definition of
&#147;Discounted Value&#148; set forth in the S&amp;P Guidelines, the quotient of the
Market Value of such asset divided by the applicable S&amp;P Discount Factor;
provided, however, that any asset as to which there is no S&amp;P Discount
Factor shall have an S&amp;P Discounted Value of zero. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(81)
&#147;S&amp;P DISCOUNT FACTORS&#148; means the discount factors set forth in the S&amp;P
Guidelines for use in calculating the S&amp;P Discounted Value of the Fund&#146;s
assets in connection with S&amp;P&#146;s rating of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(82)
&#147;S&amp;P ELIGIBLE ASSETS&#148; means assets of the Fund set forth in the S&amp;P
Guidelines as &#147;Eligible Assets&#148; for purposes of determining maintenance of the
S&amp;P Preferred Stock Basic Maintenance Amount in connection with S&amp;P&#146;s
rating of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(83)
&#147;S&amp;P GUIDELINES&#148; means that certain document entitled &#147;Standard &amp;
Poor&#146;s Preferred Stock Guidelines&#148; and adopted by the Board of Directors as of
the date hereof; <I>provided, however, </I>that
any of the</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-9</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>provisions
of said document may from time to time be amended, altered or repealed by the
Board of Directors in its sole discretion, without any vote or consent of
shareholders of the Fund, based on a determination by the Board of Directors
that such action is necessary or appropriate in connection with obtaining or maintaining
the rating assigned by S&amp;P to the APS or revising the Fund&#146;s investment
restrictions or policies consistent with guidelines adopted by S&amp;P, and any
such amendment, alteration or repeal will not be deemed to affect the
preferences, rights or powers of the APS or the Holders thereof, provided that
the Board of Directors receives written confirmation from S&amp;P that any such
amendment, alteration or repeal would not adversely affect the rating then
assigned by S&amp;P to the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(84)
&#147;S&amp;P MARKET VALUE,&#148; with respect to any asset of the Fund, means the amount
set forth in the S&amp;P Guidelines as the &#147;Market Value&#148; of such asset.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(85)
&#147;S&amp;P PREFERRED STOCK BASIC MAINTENANCE AMOUNT&#148; means the amount set forth
in the S&amp;P Guidelines as the &#147;Preferred Stock Basic Maintenance Amount.&#148;</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(86)
&#147;SECURITIES ACT&#148; means the Securities Act of 1933, as amended from time to
time.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(87)
&#147;SECURITIES DEPOSITORY&#148; means The Depository Fund Company and its successors
and assigns or any other securities depository selected by the Fund which
agrees to follow the procedures required to be followed by such securities
depository in connection with the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(88)
&#147;SELL ORDER&#148; and &#147;SELL ORDERS&#148; shall have the respective meanings specified in paragraph
(a) of Section 1 of Part II of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(89)
&#147;SETTLEMENT DATE&#148; means any date on which (i) a new Subsequent Dividend Period
begins, and (ii) shares of APS which have been tendered and sold in an Auction
are delivered through the Securities Depository.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(90)
&#147;SPECIAL DIVIDEND PERIOD,&#148; with respect to shares of a series of APS, shall
have the meaning specified in paragraph (a) of Section 3 of Part I of these
Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(91)
&#147;SPECIAL REDEMPTION PROVISIONS&#148; shall have the meaning specified in
subparagraph (a)(i) of Section 8 of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(92)
&#147;STANDARD DIVIDEND PERIOD,&#148; with respect to shares of a series of APS, means
the Initial Dividend Period for shares of such series or any Subsequent
Dividend Period consisting of seven days.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(93)
&#147;SUBMISSION DEADLINE&#148; means 1:00 p.m., New York City time, on any Auction Date
or such other time on any Auction Date by which Broker-Dealers are required to
submit Orders to the Auction Agent as specified by the Auction Agent from time
to time.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(94)
&#147;SUBMITTED BID&#148; and &#147;SUBMITTED BIDS&#148; shall have the respective meanings
specified in paragraph (a) of Section 3 of Part II of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(95)
&#147;SUBMITTED HOLD ORDER&#148; and &#147;SUBMITTED HOLD ORDERS&#148; shall have the respective
meanings specified in paragraph (a) of Section 3 of Part II of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(96)
&#147;SUBMITTED ORDER&#148; and &#147;SUBMITTED ORDERS&#148; shall have the respective meanings
specified in paragraph (a) of Section 3 of Part II of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(97)
&#147;SUBMITTED SELL ORDER&#148; and &#147;SUBMITTED SELL ORDERS&#148; shall have the respective
meanings specified in paragraph (a) of Section 3 of Part II of these Articles
Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(98)
&#147;SUBSEQUENT DIVIDEND PAYMENT DAY,&#148; with respect to shares of a series of APS
shall be a day of the week determined by the Board of Directors or a duly
authorized committee thereof in connection with the initial issuance of shares
of such series.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(99)
&#147;SUBSEQUENT DIVIDEND PERIOD,&#148; with respect to shares of a series of APS, means
the period from and including the first day following the Initial Dividend
Period of shares of such series to but excluding the next Dividend Payment Date
for shares of such series and any period thereafter from and including one
Dividend Payment Date for shares of such series to but excluding the next
succeeding Dividend Payment Date for shares of such series; <I>provided, however, </I>that if any Subsequent
Dividend Period is also a Special Dividend Period, such</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-10</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>term
means the period commencing on the first day of such Special Dividend Period
and ending on the last day of the last Dividend Period thereof.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(100)
&#147;SUBSEQUENT PREFERRED DIRECTOR&#148; means any director elected from time to time to
succeed either (i) an Initial Preferred Director or (ii) another Subsequent
Preferred Director.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(101)
&#147;SUBSTITUTE LIBOR DEALER&#148; means any dealer selected by the Fund; provided,
however, that none of such entities shall be a LIBOR Dealer.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(102)
&#147;SUBSTITUTE RATING AGENCY&#148; means a nationally recognized statistical rating
organization selected by the Fund, in accordance with the provisions hereof, to
act as a substitute rating agency to determine the credit rating of the shares
of APS. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(103)
&#147;SUBSTITUTE RATING AGENCY DISCOUNTED VALUE,&#148; with respect to any Substitute
Rating Agency and any asset held by the Fund as of any date, means, except as
may be otherwise provided in the definition of &#147;Discounted Value&#148; set forth in
the Substitute Rating Agency Guidelines applicable to such Substitute Rating
Agency, the quotient of the Market Value of such asset divided by the
Substitute Rating Agency Discount Factor applicable to such Substitute Rating
Agency and such asset; <I>provided, however, </I>that
any asset as to which there is no Substitute Rating Agency Discount Factor
applicable to such Substitute Rating Agency and such asset shall have a
Substitute Rating Agency Discounted Value of zero. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(104)
&#147;SUBSTITUTE RATING AGENCY DISCOUNT FACTORS&#148; means the discount factors set
forth in the Substitute Rating Agency Guidelines applicable to a Substitute
Rating Agency for use in calculating the Substitute Rating Agency Discounted
Value of the Fund&#146;s assets in connection with such Substitute Rating Agency&#146;s
rating of the RP. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(105)
&#147;SUBSTITUTE RATING AGENCY ELIGIBLE ASSETS,&#148; with respect to any Substitute
Rating Agency, means assets of the Fund set forth in the Substitute Rating
Agency Guidelines applicable to such Substitute Rating Agency as &#147;Eligible
Assets&#148; for purposes of determining maintenance of the Substitute Rating Agency
Preferred Stock Basic Maintenance Amount in connection with such Substitute
Rating Agency&#146;s rating of the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(106)
&#147;SUBSTITUTE RATING AGENCY GUIDELINES&#148; means any document adopted by the Board
of Directors, in connection with the selection of a Substitute Rating Agency,
setting forth the guidelines supplied by such Substitute Rating Agency in
connection with its assignment of a rating to the APS; <I>provided, however, </I>that any of the
provisions of said document may from time to time be amended, altered or
repealed by the Board of Directors in its sole discretion, without any vote or
consent of shareholders of the Fund, based on a determination by the Board of
Directors that such action is necessary or appropriate in connection with
obtaining or maintaining the rating assigned by such Substitute Rating Agency
to the APS or revising the Fund&#146;s investment restrictions or policies
consistent with guidelines adopted by such Substitute Rating Agency, and any
such amendment, alteration or repeal will not be deemed to affect the
preferences, rights or powers of the APS or the Holders thereof, provided that
the Board of Directors receives written confirmation from such Substitute
Rating Agency that any such amendment, alteration or repeal would not adversely
affect the rating then assigned by such Substitute Rating Agency to the APS.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(107)
&#147;SUBSTITUTE RATING AGENCY MARKET VALUE,&#148; with respect to any Substitute Rating
Agency and any asset of the Fund, means the amount set forth as the &#147;Market
Value&#148; of such asset in the Substitute Rating Agency Guidelines applicable to
such Substitute Rating Agency.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(108)
&#147;SUBSTITUTE RATING AGENCY PREFERRED STOCK BASIC MAINTENANCE AMOUNT,&#148; with
respect to any Substitute Rating Agency, means the amount set forth as the
&#147;Preferred Stock Basic Maintenance Amount&#148; in the Substitute Rating Agency
Guidelines applicable to such Substitute Rating Agency. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(109)
&#147;SUBSTITUTE U.S. GOVERNMENT SECURITIES DEALER&#148; any U.S. Government securities
dealer selected by the Fund as to which Moody&#146;s, S&amp;P, or any Substitute
Rating Agency then rating the APS shall not have objected; <I>provided, however, </I>that none of such
entities shall be a U.S. Government Securities Dealer.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(110)
&#147;SUFFICIENT CLEARING BIDS&#148; shall have the meaning specified in paragraph (a) of
Section 3 of Part II of these Articles Supplementary.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-11</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(111)
&#147;TREASURY NOTE&#148; means a direct obligation of the U.S. Government having a
maturity at the time of issuance of five years or less but more than 364 days. </FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(112)
&#147;U.S. GOVERNMENT SECURITIES DEALER&#148; means Lehman Government Securities
Incorporated, Goldman, Sachs &amp; Co., Salomon Brothers Inc., Morgan Guaranty
Fund Company of New York and any other U.S. Government securities dealer
selected by the Fund as to which Moody&#146;s (if Moody&#146;s is then rating the APS)
and S&amp;P (if S&amp;P is then rating the APS) shall not have objected or
their respective affiliates or successors, if such entity is a U.S. Government
securities dealer.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(113)
&#147;U.S. TREASURY NOTE RATE&#148; on any date means (i) the yield as calculated by
reference to the bid price quotation of the actively traded, current coupon
Treasury Note with a maturity most nearly comparable to the length of the
related Dividend Period, as such bid price quotation is published on the
Business Day immediately preceding such date by the Federal Reserve Bank of New
York in its Composite 3:30 p.m. Quotations for U.S. Government Securities
report for such Business Day, or (ii) if such yield as calculated is not
available, the Alternate Treasury Note Rate on such date. &#147;Alternate Treasury
Note Rate&#148; on any date means the yield as calculated by reference to the
arithmetic average of the bid price quotations of the actively traded, current
coupon Treasury Note with a maturity most nearly comparable to the length of
the related Dividend Period, as determined by the bid price quotations as of
any time on the Business Day immediately preceding such date, obtained from at
least three U.S. Government Securities Dealers.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(114)
&#147;VALUATION DATE&#148; means the last Business Day of each week, or such other date
as the Fund and the Rating Agencies may agree upon for purposes of determining
the Preferred Stock Basic Maintenance Amount.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(115)
&#147;VOTING PERIOD&#148; shall have the meaning specified in paragraph (b) of Section 4
of Part I of these Articles Supplementary.</FONT></P>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(116)
&#147;WINNING BID RATE&#148; shall have the meaning specified in paragraph (a) of Section
3 of Part II of these Articles Supplementary.</FONT></P>

<P ALIGN=CENTER><FONT  SIZE=2>A-12</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>




<P ALIGN=CENTER><A NAME=C002></A><FONT SIZE=2><B>PART I.</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="80%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>1.<A NAME=C003></A></B></FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2><B>Ranking.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  The shares of a series of APS shall rank on a parity with each other, with
  shares of any other series of APS and with shares of any other series of
  Preferred Stock as to the payment of dividends by the Fund and as to the
  distribution of assets upon dissolution, liquidation or winding up of the
  affairs of the Fund.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;No
  Holder of shares of any series of APS shall have, solely by reason of being
  such a Holder, any preemptive right or, unless otherwise determined by the
  Board of Directors, any other right to acquire, purchase or subscribe for any
  shares of Preferred Stock or Common Stock or other securities of the Fund
  which the Fund may hereafter issue or sell.</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>



<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>2.<A NAME=C004></A></B></FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2><B>Dividends.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Cumulative Cash
Dividends. </I>The Holders of
  shares of a series of APS shall be entitled to receive, when, as and if
  declared by the Board of Directors, out of funds legally available therefor
  in accordance with the Charter and applicable law, cumulative cash dividends
  at the Applicable Dividend Rate for shares of such series, determined as set
  forth in paragraph (d) of this Section 2, and no more, payable on the
  Dividend Payment Dates with respect to shares of such series determined
  pursuant to paragraph (c) of this Section 2. Holders of shares of a series of
  APS shall not be entitled to any dividend, whether payable in cash, property
  or shares, in excess of full cumulative dividends, as herein provided, on
  shares of such series. No interest, or sum of money in lieu of interest,
  shall be payable in respect of any dividend payment or payments on shares of
  a series of APS which may be in arrears, and, except to the extent set forth
  in subparagraph (d)(i) of this Section 2, no additional sum of money shall be
  payable in respect of any such arrearage.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends Cumulative
From Date of Original Issue. </I>Dividends
  on shares of a series of APS shall accumulate at the Applicable Dividend Rate
  for shares of such series from the Date of Original Issue thereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend Payment
Dates and Adjustment Thereof. </I>The
  Dividend Payment Dates with respect to shares of a series of APS shall be the
  Initial Dividend Payment Date with respect to such series and each Subsequent
  Dividend Payment Day with respect to such series thereafter; provided,
  however, that:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;if
  the day on which dividends would otherwise be payable on shares of such
  series is not a Business Day, then such dividends shall be payable on such
  shares on the first Business Day that falls after such day; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the
  Fund in its discretion may establish the Dividend Payment Dates in respect of
  any Special Dividend Period of shares of a series of APS consisting of more
  than 28 days; <I>provided, however, </I>that
  such dates shall be set forth in the Notice of Special Dividend Period
  relating to such Special Dividend Period, as delivered to the Auction Agent,
  which Notice of Special Dividend Period shall be filed with the Secretary of
  the Fund; and <I>provided, further, </I>that
  (A) any such Dividend Payment Date shall be a Business Day and (B) the last
  Dividend Payment Date in respect of such Special Dividend Period shall be the
  Business Day immediately following the last day thereof.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend Rates and
Calculation of Dividends. </I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend Rates.
</I>The dividend rate on
  shares of a series of APS during the period from and after the Date of
  Original Issue of shares of such series to and including the last day of the
  Initial Dividend Period of shares of such series shall be equal to the
  Initial Dividend Rate. For each Subsequent Dividend Period of shares of such
  series thereafter, the dividend rate on shares of such series shall be equal
  to the rate per annum that results from an Auction for shares of such series
  on the Auction Date next preceding such Subsequent Dividend Period; <I>provided, however, </I>that if:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  an Auction for any such Subsequent Dividend Period is not held for any reason
  other than as described below and in Section 8 of Part II, the dividend rate
  on shares of such series for such Subsequent Dividend Period will be the
  Maximum Dividend Rate for shares of such series on the Auction Date therefor;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-13</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="80%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  any Failure to Deposit shall have occurred with respect to shares of such
  series during any Initial Dividend Period or Subsequent Dividend Period
  thereof (other than any Special Dividend Period consisting of more than 364
  days or any Subsequent Dividend Period succeeding any Special Dividend Period
  consisting of more than 364 days during which a Failure to Deposit occurred
  that has not been cured), but, prior to 12:00 Noon, New York City time, on
  the third Business Day next succeeding the date on which such Failure to
  Deposit occurred, such Failure to Deposit shall have been cured in accordance
  with paragraph (e) of this Section 2 and the Fund shall have paid to the
  Auction Agent a late charge (&#147;Late Charge&#148;) equal to the sum of (1) if such Failure
  to Deposit consisted of the failure timely to pay to the Auction Agent the
  full amount of dividends with respect to any Dividend Period of the shares of
  such series, an amount computed by multiplying (x) 200% of the Reference Rate
  for the Initial Dividend Period or Subsequent Dividend Period during which
  such Failure to Deposit occurs on the Dividend Payment Date for such Dividend
  Period by (y) a fraction, the numerator of which shall be the number of days
  for which such Failure to Deposit has not been cured in accordance with
  paragraph (e) of this Section 2 (including the day such Failure to Deposit
  occurs and excluding the day such Failure to Deposit is cured) and the
  denominator of which shall be 360, and applying the rate obtained against the
  aggregate Liquidation Preference of the outstanding shares of such series and
  if such Failure to Deposit consisted of the failure timely to pay to the
  Auction Agent the Redemption Price of the shares, if any, of such series for
  which Notice of Redemption has been mailed by the Fund pursuant to paragraph
  (c) of Section 8 of this Part I, an amount computed by multiplying (x) 300%
  of the Reference Rate for the Initial Dividend Period or Subsequent Dividend
  Period during which such Failure to Deposit occurs on the redemption date by
  (y) a fraction, the numerator of which shall be the number of days for which
  such Failure to Deposit is not cured in accordance with paragraph (e) of this
  Section 2 (including the day such Failure to Deposit occurs and excluding the
  day such Failure to Deposit is cured) and the denominator of which shall be
  360, and applying the rate obtained against the aggregate Liquidation
  Preference of the outstanding shares of such series to be redeemed, no
  Auction will be held in respect of shares of such series for the Subsequent
  Dividend Period thereof and the dividend rate for shares of such series for
  such Subsequent Dividend Period will be the Maximum Dividend Rate for shares
  of such series on the Auction Date for such Subsequent Dividend Period;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  any Failure to Deposit shall have occurred with respect to shares of such
  series during any Initial Dividend Period or Subsequent Dividend Period
  thereof (other than any Special Dividend Period consisting of more than 364
  days or any Subsequent Dividend Period succeeding any Special Dividend Period
  consisting of more than 364 days during which a Failure to Deposit occurred
  that has not been cured), and, prior to 12:00 Noon, New York City time, on
  the third Business Day next succeeding the date on which such Failure to
  Deposit occurred, such Failure to Deposit shall not have been cured in
  accordance with paragraph (e) of this Section 2 or the Fund shall not have
  paid the applicable Late Charge to the Auction Agent, no Auction will be held
  in respect of shares of such series for the first Subsequent Dividend Period
  thereof thereafter (or for any Subsequent Dividend Period thereof thereafter
  to and including the Subsequent Dividend Period during which (1) such Failure
  to Deposit is cured in accordance with paragraph (e) of this Section 2 and
  (2) the Fund pays the applicable Late Charge to the Auction Agent (the
  condition set forth in this clause (2) to apply only in the event S&amp;P is
  rating such shares at the time the Fund cures such Failure to Deposit), in
  each case no later than 12:00 Noon, New York City time, on the fourth
  Business Day prior to the end of such Subsequent Dividend Period), and the
  dividend rate for shares of such series for each such Subsequent Dividend
  Period shall be a rate per annum equal to the Maximum Dividend Rate for
  shares of such series on the Auction Date for such Subsequent Dividend Period
  (but with the prevailing rating for shares of such series, for purposes of
  determining such Maximum Dividend Rate, being deemed to be below BBB-); or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)
  any Failure to Deposit shall have occurred with respect to shares of such
  series during a Special Dividend Period thereof consisting of more than 364
  days, or during any Subsequent Dividend Period thereof succeeding any Special
  Dividend Period consisting of more than 364 days during which a Failure to
  Deposit occurred that has not been cured, and, prior to 12:00 Noon, New</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-14</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="80%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>York City
  time, on the fourth Business Day preceding the Auction Date for the
  Subsequent Dividend Period next succeeding such Subsequent Dividend Period,
  such Failure to Deposit shall not have been cured in accordance with
  paragraph (e) of this Section 2 or, in the event S&amp;P is then rating such
  shares, the Fund shall not have paid the applicable Late Charge to the
  Auction Agent (such Late Charge, for purposes of this subparagraph (D), to be
  calculated by using, as the Reference Rate, the Reference Rate applicable to
  a Special Dividend Period (x) consisting of more than 182 days but fewer than
  365 days and (y) commencing on the date on which the Subsequent Dividend
  Period during which Failure to Deposit occurs commenced), no Auction will be
  held in respect of shares of such series for such Subsequent Dividend Period
  (or for any Subsequent Dividend Period thereof thereafter to and including
  the Subsequent Dividend Period during which (1) such Failure to Deposit is
  cured in accordance with paragraph (e) of this Section 2 and (2) the Fund
  pays the applicable Late Charge to the Auction Agent (the condition set forth
  in this clause (2) to apply only in the event S&amp;P is rating such shares
  at the time the Fund cures such Failure to Deposit), in each case no later
  than 12:00 Noon, New York City time, on the fourth Business Day prior to the
  end of such Subsequent Dividend Period), and the dividend rate for shares of
  such series for each such Subsequent Dividend Period shall be a rate per
  annum equal to the Maximum Dividend Rate for shares of such series on the
  Auction Date for such Subsequent Dividend Period (but with the prevailing
  rating for shares of such series, for purposes of determining such Maximum
  Dividend Rate, being deemed to be below BBB-) (the rate per annum at which
  dividends are payable on shares of a series of APS for any Initial Dividend
  Period or Subsequent Dividend Period thereof being herein referred to as the
  &#147;Applicable Dividend Rate&#148; for shares of such series).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Calculation of
Dividends. </I>The amount of
  dividends per share payable on shares of a series of APS on any date on which
  dividends shall be payable on shares of such series shall be computed by
  multiplying the Applicable Dividend Rate for shares of such series in effect
  for such Dividend Period or Dividend Periods or part thereof for which
  dividends have not been paid by a fraction, the numerator of which shall be
  the number of days in such Dividend Period or Dividend Periods or part
  thereof and the denominator of which shall be 365 if such Dividend Period is
  a Standard Dividend Period and 360 in all other cases, and applying the rate
  obtained against $25,000.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Curing a Failure to
Deposit. </I>A Failure
  to Deposit with respect to shares of a series of APS shall have been cured
  (if such Failure to Deposit is not solely due to the willful failure of the
  Fund to make the required payment to the Auction Agent) with respect to any
  Initial Dividend Period or Subsequent Dividend Period of shares of such
  series if, within the respective time periods described in subparagraph (d)(i)
  of this Section 2, the Fund shall have paid to the Auction Agent (A) all
  accumulated and unpaid dividends on shares of such series and (B) without
  duplication, the Redemption Price for shares, if any, of such series for
  which Notice of Redemption has been mailed by the Fund pursuant to paragraph
  (c) of Section 8 of Part I of these Articles Supplementary; <I>provided, however, </I>that the foregoing
  clause (B) shall not apply to the Fund&#146;s failure to pay the Redemption Price
  in respect of shares of a series of APS when the related Redemption Notice
  provides that redemption of such shares is subject to one or more conditions
  precedent until any such condition precedent shall not have been satisfied at
  the time or times and in the manner specified in such Notice of Redemption.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividend Payments by
Fund to Auction Agent. </I>The
  Fund shall pay to the Auction Agent, not later than 12:00 Noon, New York City
  time, on each Dividend Payment Date for shares of a series of APS, an
  aggregate amount of same day funds, equal to the dividends to be paid to all
  Holders of shares of such series on such Dividend Payment Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Agent as
Trustee of Dividend Payments by
  Fund. </I>All moneys paid to the Auction Agent for the payment of
  dividends (or for the payment of any Late Charge) shall be held in trust for
  the payment of such dividends (and any such Late Charge) by the Auction Agent
  for the benefit of the Holders specified in paragraph (h) of this Section 2.
  Any moneys paid to the Auction Agent in accordance with the foregoing but not
  applied by the Auction Agent to the payment of dividends (and any such Late
  Charge) will, to the extent permitted by law and upon written request be
  repaid to the Fund at the end of 90 days from the date on which such moneys
  were so to have been applied. Dividends Paid to Holders. Each dividend on
  shares of a series of APS shall be paid on the Dividend Payment Date therefor
  to the Holders thereof as their names appear on the record books of the Fund
  on the Business Day next preceding such Dividend Payment Date.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-15</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Dividends Credited
Against Earliest Accumulated but
  Unpaid Dividends. </I>Any dividend payment made on shares of a series
  of APS shall first be credited against the earliest accumulated but unpaid
  dividends due with respect to such shares. Dividends in arrears for any past
  Dividend Period may be declared and paid at any time, without reference to
  any regular Dividend Payment Date, to the Holders as their names appear on
  the record books of the Fund on such date, not exceeding 15 days preceding
  the payment date thereof, as may be fixed by the Board of Directors.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>3.<A NAME=C005></A></B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Designation of Special Dividend Periods.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Length of and
Preconditions for Special Dividend
  Period. </I>The Fund, at its option, may designate any succeeding
  Subsequent Dividend Period of shares of a series of APS as a Special Dividend
  Period consisting of a specified number of days evenly divisible by seven and
  not more than 1,820 (a &#147;Special Dividend Period&#148;); <I>provided, however, </I>that such Special Dividend Period may
  consist of a number of days not evenly divisible by seven if all shares of
  such series of APS are to be redeemed at the end of such Special Dividend
  Period. A designation of a Special Dividend Period shall be effective only if
  (A) notice thereof shall have been given in accordance with paragraph (b) and
  subparagraph (c)(i) of this Section 3, (B) an Auction for shares of such
  series shall have been held on the Auction Date immediately preceding the
  first day of such proposed Special Dividend Period and Sufficient Clearing
  Bids for shares of such series shall have existed in such Auction, and (C) if
  any Notice of Redemption shall have been mailed by the Fund pursuant to
  paragraph (c) of Section 8 of this Part I with respect to any shares of such
  series, the Fund has available liquid securities equal to the Redemption
  Price. In the event the Fund wishes to designate any succeeding Subsequent
  Dividend Period for shares of a series of APS as a Special Dividend Period
  consisting of more than 28 days, the Fund shall notify Moody&#146;s (if Moody&#146;s is
  then rating the APS) and S&amp;P (if S&amp;P is then rating such series) in
  advance of the commencement of such Subsequent Dividend Period that the Fund
  wishes to designate such Subsequent Dividend Period as a Special Dividend
  Period and shall provide Moody&#146;s (if Moody&#146;s is then rating the APS) and
  S&amp;P (if S&amp;P is then rating such series) with such documents as it may
  request. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notice of Proposed
Special Dividend Period. </I>If
  the Fund proposes to designate any succeeding Subsequent Dividend Period of
  shares of a series of APS as a Special Dividend Period pursuant to paragraph
  (a) of this Section 3, not less than 20 (or such lesser number of days as may
  be agreed to from time to time by the Auction Agent) nor more than 30 days
  prior to the date the Fund proposes to designate as the first day of such
  Special Dividend Period (which shall be such day that would otherwise be the
  first day of a Standard Dividend Period), notice shall be mailed by the Fund
  by first-class mail, postage prepaid, to the Holders of shares of such
  series. Each such notice shall state (A) that the Fund may exercise its
  option to designate a succeeding Subsequent Dividend Period of shares of such
  series as a Special Dividend Period, specifying the first day thereof and (B)
  that the Fund will, by 11:00 a.m., New York City time, on the second Business
  Day next preceding such date (or by such later time or date, or both, as may
  be agreed to by the Auction Agent) notify the Auction Agent of either (x) its
  determination, subject to certain conditions, to exercise such option, in
  which case the Fund shall specify the Special Dividend Period designated, or
  (y) its determination not to exercise such option. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notice of Special
Dividend Period. </I>No
  later than 11:00 a.m., New York City time, on the second Business Day next
  preceding the first day of any proposed Special Dividend Period of shares of
  a series of APS as to which notice has been given as set forth in paragraph
  (b) of this Section 3 (or such later time or date, or both, as may be agreed
  to by the Auction Agent), the Fund shall deliver to the Auction Agent either:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a
  notice (&#147;Notice of Special Dividend Period&#148;) stating (A) that the Fund has
  determined to designate the next Subsequent Dividend Period of shares of such
  series as a Special Dividend Period, specifying the same and the first day
  thereof, (B) the Auction Date immediately prior to the first day of such
  Special Dividend Period, (C) that such Special Dividend Period shall not
  commence if (1) an Auction for shares of such series shall not be held on
  such Auction Date for any reason, (2) an Auction for shares of such series
  shall be held on such Auction Date but Sufficient Clearing Bids for shares of
  such series shall not exist in such Auction, (3) full cumulative dividends
  and any amounts due with respect to redemptions have not been paid in full as
  of such Auction Date, or (4) the Fund does not receive confirmation from
  Moody&#146;s (if Moody&#146;s is then rating the APS) or S&amp;P (if S&amp;P is then
  rating the APS) that the proposed Special Dividend Period will not affect
  such rating agency&#146;s then-current</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-16</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>rating on
  the APS, (D) the scheduled Dividend Payment Dates for shares of such series
  during such Special Dividend Period and (E) the Special Redemption
  Provisions, if any, applicable to shares of such series in respect of such
  Special Dividend Period, such notice to be accompanied by a Preferred Stock
  Basic Maintenance Report showing that, as of the third Business Day next
  preceding such proposed Special Dividend Period, Moody&#146;s Eligible Assets (if
  Moody&#146;s is then rating the APS) and S&amp;P Eligible Assets (if S&amp;P is
  then rating such series) each have an aggregate Discounted Value at least
  equal to the Preferred Stock Basic Maintenance Amount as of such Business Day
  (assuming for purposes of the foregoing calculation that the Maximum Dividend
  Rate is the Maximum Dividend Rate on such Business Day as if such Business
  Day were the Auction Date for the proposed Special Dividend Period); or (ii)
  a notice stating that the Fund has determined not to exercise its option to
  designate a Special Dividend Period of shares of such series and that the next
  Subsequent Dividend Period of shares of such series shall be a Standard
  Dividend Period. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Failure to Deliver
Notice of Special Dividend
  Period. </I>If the Fund fails to deliver either of the notices
  described in subparagraphs (c)(i) or (c)(ii) of this Section 3 (and, in the
  case of the notice described in subparagraph (c)(i) of this Section 3, a
  Preferred Stock Basic Maintenance Report to the effect set forth in such
  subparagraph (if either Moody&#146;s or S&amp;P is then rating the series in
  question)) with respect to any designation of any proposed Special Dividend
  Period to the Auction Agent by 11:00 a.m., New York City time, on the second
  Business Day next preceding the first day of such proposed Special Dividend
  Period (or by such later time or date, or both, as may be agreed to by the
  Auction Agent), the Fund shall be deemed to have delivered a notice to the
  Auction Agent with respect to such Special Dividend Period to the effect set
  forth in sub-paragraph (c)(ii) of this Section 3. In the event the Fund
  delivers to the Auction Agent a notice described in subparagraph (c)(i) of
  this Section 3, it shall file a copy of such notice with the Secretary of the
  Fund, and the contents of such notice shall be binding on the Fund. In the
  event the Fund delivers to the Auction Agent a notice described in
  subparagraph (c)(ii) of this Section 3, the Fund will provide Moody&#146;s (if
  Moody&#146;s is then rating the series in question) and S&amp;P (if S&amp;P is
  then rating the series in question) a copy of such notice.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>4.<A NAME=C006></A></B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Voting Rights.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>One Quarter of a Vote
Per Share of APS. </I>Except
  as otherwise provided in the Charter or as otherwise required by law, (i)
  each Holder of shares of a series of APS shall be entitled to one quarter of
  a vote for each such share held by such Holder on each matter submitted to a
  vote of shareholders of the Fund, and (ii) the holders of shares of Preferred
  Stock, including shares of each series of APS, and the holders of shares of
  Common Stock shall vote together as a single class; provided, however, that,
  at any meeting of the shareholders of the Fund held for the election of
  directors, the holders of shares of Preferred Stock, including shares of each
  series of APS, represented in person or by proxy at said meeting, shall be
  entitled, as a class, to the exclusion of the holders of all other securities
  and classes of stock of the Fund, to elect a director to succeed any
  Preferred Director whose term is expiring or whose seat on the Board of
  Directors is vacant, each share of any series of APS entitling the holder
  thereof to one quarter of a vote. Subject to paragraph (b) of this Section 4,
  the holders of the outstanding shares of Common Stock shall be entitled, as a
  class, to the exclusion of the holders of all other securities and classes of
  stock of the Fund, to elect the balance of the directors.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting For Additional
Directors.</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting Period.
</I>Except as otherwise
  provided in the Charter or as otherwise required by law, during any period in
  which any one or more of the conditions described in clauses (A) or (B) of
  this subparagraph (b)(i) shall exist (such period being referred to herein as
  a &#147;Voting Period&#148;), the number of directors constituting the Board of
  Directors shall be automatically increased by the smallest number that, when
  added to the two directors elected exclusively by the holders of shares of
  Preferred Stock, including shares of each series of APS, would constitute a
  majority of the Board of Directors as so increased by such smallest number,
  and the holders of shares of Preferred Stock, including shares of each series
  of APS, shall be entitled, voting as a class on a one-vote-per-share basis
  (to the exclusion of the holders of all other securities and classes of stock
  of the Fund), to elect such smallest number of additional directors, together
  with the two directors that such holders are in any event entitled to elect.
  A Voting Period shall commence:</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-17</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  if at the close of business on any dividend payment date accumulated
  dividends (whether or not earned or declared) on any outstanding shares of
  any series of APS, equal to at least two full years&#146; dividends shall be due
  and unpaid and sufficient cash or specified securities shall not have been
  deposited with the Auction Agent for the payment of such accumulated
  dividends; or </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  if at any time holders of shares of Preferred Stock, including shares of each
  series of APS, are entitled under the Investment Company Act to elect a
  majority of the directors of the Fund.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Upon
  the termination of a Voting Period, the voting rights described in this
  subparagraph (b)(i) shall cease, subject always, however, to the reverting of
  such voting rights in the holders of shares of Preferred Stock upon the
  further occurrence of any of the events described in this subparagraph
  (b)(i).</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notice of Special
Meeting. </I>As soon as
  practicable after the accrual of any right of the holders of shares of
  Preferred Stock, including shares of each series of APS, to elect additional
  directors as described in subparagraph (b)(i) of this Section 4, the Fund
  shall notify the Auction Agent and the Auction Agent shall call a special
  meeting of such holders, by mailing a notice of such special meeting to such
  holders, such meeting to be held not less than 10 nor more than 20 days after
  the date of mailing of such notice. If the Fund fails to send such notice to
  the Auction Agent or if the Auction Agent does not call such a special
  meeting, it may be called by any such holder on like notice. The record date
  for determining the holders entitled to notice of and to vote at such special
  meeting shall be the close of business on the fifth Business Day preceding
  the day on which such notice is mailed. At any such special meeting and at
  each meeting of holders of shares of Preferred Stock, including shares of
  each series of APS, held during a Voting Period at which directors are to be
  elected, such holders, voting together as a class (to the exclusion of the
  holders of all other securities and classes of stock of the Fund), shall be
  entitled to elect the number of directors prescribed in subparagraph (b)(i)
  of this Section 4 on a one-vote-per-share basis. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Terms of Office of
Existing Directors. </I>The
  terms of office of all persons who are directors of the Fund at the time of a
  special meeting of Holders of shares of each series of APS and other holders
  of shares of Preferred Stock to elect directors shall continue,
  notwithstanding the election at such meeting by the Holders and such other
  holders of the number of directors that they are entitled to elect, and the
  persons so elected by the Holders and such other holders, together with the
  two incumbent directors elected by the Holders and such other holders of
  Preferred Stock and the remaining incumbent directors elected by the holders
  of shares of Common Stock, shall constitute the duly elected directors of the
  Fund. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Terms of Office of
Certain Directors to Terminate
  Upon Termination of Voting Period.</I> Simultaneously
  with the termination of a Voting Period, the terms of office of the
  additional directors elected by the Holders of shares of each series of APS
  and other holders of shares of Preferred Stock pursuant to subparagraph
  (b)(i) of this Section 4 shall terminate, the remaining directors shall
  constitute the directors of the Fund and the voting rights of the Holders and
  such other holders to elect additional directors pursuant to subparagraph
  (b)(i) of this Section 4 shall cease, subject to the provisions of the last
  sentence of subparagraph (b)(i) of this Section 4. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Holders of APS to
Vote on Certain Other Matters.</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)<I>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capitalization
Matters.
  </I>So long as shares of any series of APS are outstanding, the Fund
  shall not, without the affirmative vote or consent of the Holders of at least
  two thirds of the shares of all series of Preferred Stock outstanding at the
  time, given in person or by proxy, either in writing or at a meeting, voting
  separately as one class: (a) authorize, create or issue, or increase the
  authorized or issued amount of, any class or series of shares ranking prior
  to the APS with respect to the payment of dividends or the distribution of
  assets on liquidation or (b) amend, alter or repeal the provisions of the
  Charter or these Articles Supplementary, whether by merger, consolidation or
  otherwise, so as to materially and adversely affect any right, preference,
  privilege or voting power of shares of any series of APS or the Holders
  thereof; provided, however, that any increase in the amount of the authorized
  APS or the creation and issuance of other series of Preferred Stock or any
  increase in the amount of authorized shares of such series or of any other
  series of Preferred Stock, in each case ranking on a parity with or junior to
  the APS, will not be deemed to materially and adversely affect such rights,
  preferences, privileges or voting</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-18</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 width=100%>
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>powers
  unless such issuance would cause the Fund not to satisfy the Investment
  Company Act Preferred Stock Asset Coverage or the Preferred Stock Basic
  Maintenance Amount. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Investment Company
Act Matters. </I>Unless a
  higher percentage is provided for under the Charter, the affirmative vote of
  the holders of at least a &#147;majority of the outstanding Preferred Stock&#148; at
  the time, voting separately as one class, shall be required to approve any
  plan of reorganization adversely affecting such shares or any action
  requiring a vote of security holders under Section 13(a) of the Investment
  Company Act. For purposes of the foregoing, &#147;majority of the outstanding
  Preferred Stock&#148; shall mean (A) 67% or more of the shares of Preferred Stock
  present at a meeting, if the holders of more than 50% of the outstanding
  shares of Preferred Stock are present or represented by proxy or (B) more
  than 50% of the outstanding shares of Preferred Stock, whichever is less. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Separate Class
Voting. </I>The class vote of
  Holders of shares of Preferred Stock, including APS, described in this
  paragraph (c) shall in each case be in addition to a separate vote of the
  requisite percentage of shares of Common Stock and shares of Preferred Stock,
  including APS, necessary to authorize the action in question.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting by Series.
</I>In addition to any
  vote of the requisite percentage of shares of Common Stock and shares of
  Preferred Stock, including APS, otherwise necessary to authorize any proposed
  action under the Charter or the Investment Company Act, on any matter on
  which the Preferred Stock has the right to vote as a class, the approval of
  the holders of a majority of the outstanding shares of any series of
  Preferred Stock, including any series of APS, voting separately as a series,
  shall be necessary to approve such proposed action if such series would be
  affected by the proposed action in a manner materially different from any
  other series. For purposes of the foregoing, &#147;majority of the outstanding shares
  of any series of Preferred Stock&#148; shall mean (A) 67% or more of the shares of
  such series of Preferred Stock present at a meeting, if the holders of more
  than 50% of the outstanding shares of such series are present or represented
  by proxy or (B) more than 50% of the outstanding shares of such series,
  whichever is less.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting Rights Set
Forth Herein Are Sole Voting
  Rights. </I>Unless otherwise required by law, the Holders of shares of
  any series of APS shall not have any relative rights or preferences or other
  special rights other than those specifically set forth herein.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Preemptive Rights
Or Cumulative Voting. </I>The
  Holders of shares of any series of APS shall have no preemptive rights or
  rights to cumulative voting. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Voting For Directors
Sole Remedy For Fund&#146;s Failure
  To Pay Dividends. </I>In the event that the Fund fails to pay any
  dividends on shares of any series of APS, the exclusive remedy of the Holders
  shall be the right to vote for directors pursuant to the provisions of this
  Section 4.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Holders Entitled To
Vote. </I>For purposes
  of determining any rights of the Holders to vote on any matter, whether such
  right is created by these Articles Supplementary, by the other provisions of
  the Charter, by statute or otherwise, no Holder shall be entitled to vote the
  shares of any series of APS and no shares of any series of APS shall be
  deemed to be &#147;outstanding&#148; for the purpose of voting or determining the
  number of shares required to constitute a quorum if, prior to or concurrently
  with the time of determination of shares entitled to vote or shares deemed
  outstanding for quorum purposes, as the case may be, the requisite Notice of
  Redemption with respect to such shares shall have been mailed as provided in
  paragraph (c) of Section 8 of this Part I and the Redemption Price for the
  redemption of such shares shall have been deposited in trust with the Auction
  Agent for that purpose. No shares of any series of APS held by the Fund or
  any affiliate of the Fund (except for shares held by a Broker-Dealer that is
  an affiliate of the Fund for the account of its customers) shall have any
  voting rights or be deemed to be outstanding for voting or other purposes. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>5.<A NAME=C007></A></B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Investment Company Act Preferred Stock Asset Coverage. </B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Fund shall maintain, as of the last Business Day of each month in which any
  shares of any series of APS are outstanding, the Investment Company Act
  Preferred Stock Asset Coverage. </FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-19</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<BR>
<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>6.</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Preferred Stock Basic Maintenance Coverage.<A NAME=C008></A></B></FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>


<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Fund shall maintain, on each Valuation Date, (i) if Moody&#146;s is then rating
  the APS, Moody&#146;s Eligible Assets having an aggregate Moody&#146;s Discounted Value
  at least equal to the Moody&#146;s Preferred Stock Basic Maintenance Amount, (ii)
  if S&amp;P is then rating the APS, S&amp;P Eligible Assets having an
  aggregate S&amp;P Discounted Value at least equal to the S&amp;P Preferred
  Stock Basic Maintenance Amount and (iii) if any Substitute Rating Agency is
  then rating the APS, Substitute Rating Agency Eligible Assets having an
  aggregate Substitute Rating Agency Discounted Value at least equal to the
  Substituted Rating Agency Preferred Stock Basic Maintenance Amount, in each
  case applicable to each such Substitute Rating Agency.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On
  or before 5:00 p.m., New York City time, on the third Business Day after each
  Valuation Date, the Fund shall complete and deliver to the Auction Agent and
  the Paying Agent a Preferred Stock Basic Maintenance Report, which will be
  deemed to have been delivered to the Auction Agent and the Paying Agent if
  the Auction Agent and the Paying Agent receive a copy or telecopy, telex or
  other electronic transcription thereof and on the same day the Fund mails to
  the Auction Agent and the Paying Agent for delivery on the next Business Day
  the full Preferred Stock Basic Maintenance Report. A failure by the Fund to
  deliver a Preferred Stock Basic Maintenance Report under this paragraph 6(b)
  without the prior consent of the Auction Agent and the Paying Agent shall be
  deemed to be delivery of a Preferred Stock Basic Maintenance Report
  indicating the Discounted Value for all assets of the Fund is less than the
  Preferred Stock Basic Maintenance Amount, as of the relevant Valuation Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within
  ten Business Days after the date of delivery to the Auction Agent and the
  Paying Agent of a Preferred Stock Basic Maintenance Report in accordance with
  paragraph 6(b) above relating to a Annual Valuation Date, the Independent
  Accountant will confirm in writing to the Auction Agent and the Paying Agent
  (i) the mathematical accuracy of the calculations reflected in such Report,
  (ii) that, in such Report, the Fund determined in accordance with these
  Articles Supplementary the assets of the Fund which constitute Eligible
  Assets at such Annual Valuation Date, (iii) that, in such Report, the Fund
  determined in accordance with these Articles Supplementary whether the Fund
  had, at such Annual Valuation Date, Eligible Assets of an aggregate
  Discounted Value at least equal to the Preferred Stock Basic Maintenance
  Amount, (iv) with respect to the S&amp;P rating on portfolio securities of
  the Fund, issuer name, issue size and coupon rate listed in such Report, that
  information has been traced and agrees with the information listed by
  Bloomberg, L.P. or an alternative reputable source (in the event such
  information does not agree or such information is not listed by Bloomberg,
  L.P. or an alternative reputable source, the Independent Accountant will
  inquire of S&amp;P what such information is, and provide a listing in their
  letter of such differences, if any), (v) with respect to the Moody&#146;s ratings
  on portfolio securities of the Fund, issuer name, issue size and coupon rate
  listed in such Report, that information has been traced and agrees with the
  information listed by Bloomberg, L.P. or an alternative reputable source (in
  the event such information does not agree or such information is not listed
  by Bloomberg, L.P. or an alternative reputable source, the Independent
  Accountant will inquire of Moody&#146;s what such information is, and provide a
  listing in their letter of such differences, if any), (vi) with respect to
  any Substitute Rating Agency&#146;s ratings on portfolio securities of the Fund,
  issuer name, issue size and coupon rate listed in such Report, that
  information has been traced and agrees with the information listed by
  Bloomberg, L.P. or an alternative reputable source (in the event such
  information does not agree or such information is not listed by Bloomberg,
  L.P. or an alternative reputable source, the Independent Accountant will
  inquire of such Substitute Rating Agency what such information is, and
  provide a listing in their letter of such differences, if any) and (vii) with
  respect to the bid or mean price (or such alternative permissible factor used
  in calculating the Market Value) provided by the custodian of the Fund&#146;s
  assets to the Fund for purposes of valuing securities in the Fund&#146;s
  portfolio, the Independent Accountant has traced the price used in such
  Report to the bid or mean price listed in the Fund&#146;s accounting records as of
  such date and verified that such information agrees (in the event such
  information does not agree, the Independent Accountant will provide a listing
  in its letter of such differences) (such confirmation is herein called the
  &#147;Accountant&#146;s Confirmation&#148;). If any Accountant&#146;s Confirmation delivered
  pursuant to this paragraph 6(c) shows that an error was made in the Preferred
  Stock Basic Maintenance Report for a Annual Valuation Date, or shows that a
  lower aggregate Discounted Value for the aggregate of all Eligible Assets of
  the Fund was determined by the Independent Accountant, the calculation or
  determination made by such Independent Accountant shall be final and
  conclusive and shall be binding on the Fund, and the Fund shall accordingly
  amend the Preferred</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-20</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>Stock Basic
  Maintenance Report to the Auction Agent and Paying Agent promptly following
  receipt by the Auction Agent and the Paying Agent of such Accountant&#146;s
  Confirmation.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>7.</B></FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B>Restrictions on Dividends and Other Distributions.<A NAME=C009></A></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  so long as any share of APS is outstanding, the Fund shall not declare, pay
  or set apart for payment any dividend or other distribution (other than a
  dividend or distribution paid in shares of, or options, warrants or rights to
  subscribe for or purchase, Common Stock or other stock, if any, ranking
  junior to the shares of APS as to dividends or upon liquidation) in respect
  of the Common Stock or any other stock of the Fund ranking junior to or on a
  parity with the shares of APS as to dividends or upon liquidation, or call
  for redemption, redeem, purchase or otherwise acquire for consideration any
  shares of the Common Stock or any other such junior stock (except by
  conversion into or exchange for stock of the Fund ranking junior to the
  shares of APS as to dividends and upon liquidation) or any other such parity
  stock (except by conversion into or exchange for stock of the Fund ranking
  junior to or on a parity with the shares of APS as to dividends and upon
  liquidation), unless (A) immediately after such transaction, the Preferred
  Stock Basic Maintenance Amount and the Investment Company Act Preferred Stock
  Asset Coverage would be achieved, (B) full cumulative dividends on shares of
  APS and shares of other Preferred Stock ranking on a parity with the APS with
  respect to the payment of dividends and the distribution of assets upon
  dissolution, liquidation or winding up of the affairs of the Fund due on or
  prior to the date of the transaction have been declared and paid or shall
  have been declared and sufficient funds for the payment thereof deposited
  with the Paying Agent, (C) the Fund has redeemed the full number of shares of
  APS required to be redeemed by any provision for mandatory redemption
  contained herein.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;When
  dividends are not paid in full upon the shares of each series of APS through
  its most recent Dividend Payment Date or upon the shares of any other class
  or series of stock of the Fund ranking on a parity with the APS as to the
  payment of dividends through their most recent respective dividend payment
  dates, all dividends declared upon the shares of each series of APS and the
  shares of any other such class or series of stock ranking on a parity with
  the APS as to the payment of dividends shall be declared pro rata so that the
  amount of dividends declared per share on each series of APS and such other
  class or series of stock shall in all cases bear to each other the same ratio
  that accumulated dividends per share on such series of APS and such other
  class or series of stock bear to each other (for purposes of this sentence,
  the amount of dividends declared per share on each series of APS shall be
  based on the Applicable Dividend Rate for such share for the Dividend Periods
  during which dividends were not paid in full).</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>8.</B></FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><A NAME=C010></A>Redemption.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP colspan="3">
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Optional Redemption.</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
  to the provisions of subparagraph (v) of this paragraph (a), shares of any
  series of APS may be redeemed, at the option of the Fund, as a whole or from
  time to time in part, on any Dividend Payment Date for shares of such series,
  out of funds legally available therefor, at a redemption price per share
  equal to the sum of $25,000 plus an amount equal to accumulated but unpaid
  dividends thereon (whether or not earned or declared) to (but not including)
  the date fixed for redemption; <I>provided,
  however, </I>that (1) shares of a series of APS may not be redeemed in
  part if after such partial redemption fewer than 300 shares of such series
  remain outstanding; (2) shares of a series of APS are redeemable by the Fund
  during the Initial Dividend Period thereof only on the second Business Day
  next preceding the last Dividend Payment Date for such Initial Dividend
  Period; and (3) subject to sub-paragraph (ii) of this paragraph (a), the
  Notice of Special Dividend Period relating to a Special Dividend Period of
  shares of a series of APS, as delivered to the Auction Agent and filed with
  the Secretary of the Fund, may provide that shares of such series shall not
  be redeemable during the whole or any part of such Special Dividend Period
  (except as provided in subparagraph of this paragraph (a)) or shall be
  redeemable during the whole or any part of such Special Dividend Period only
  upon payment of such redemption premium or premiums as shall be specified in
  such notice (&#147;Special Redemption Provisions&#148;).</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-21</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A
  Notice of Special Dividend Period relating to shares of a series of APS for a
  Special Dividend Period thereof may contain Special Redemption Provisions
  only if the Fund&#146;s Board of Directors, after consultation with the
  Broker-Dealer or Broker-Dealers for such Special Dividend Period of shares of
  such series, determines that such Special Redemption Provisions are in the
  best interest of the Fund. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If
  fewer than all of the outstanding shares of a series of APS are to be
  redeemed pursuant to subparagraph (i) of this paragraph (a), the number of
  shares of such series to be redeemed shall be determined by the Board of
  Directors, and such shares shall be redeemed pro rata from the Holders of
  shares of such series in proportion to the number of shares of such series
  held by such Holders. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject
  to the provisions of subparagraph (v) of this paragraph (a), shares of any
  series of APS may be redeemed, at the option of the Fund, as a whole but not
  in part, out of funds legally available therefor, on the first day following
  any Dividend Period thereof included in a Special Dividend Period consisting
  of more than 364 days if, on the date of determination of the Applicable
  Dividend Rate for shares of such series for such Special Dividend Period,
  such Applicable Dividend Rate equaled or exceeded on such date of
  determination the Treasury Note Rate for such Special Dividend Period, at a
  redemption price per share equal to the sum of $25,000 plus an amount equal
  to accumulated but unpaid dividends thereon (whether or not earned or declared)
  to (but not including) the date fixed for redemption. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The
  Fund may not on any date mail a Notice of Redemption pursuant to paragraph
  (c) of this Section 8 in respect of a redemption contemplated to be effected
  pursuant to this paragraph (a) unless on such date the Fund has available
  liquid securities having a value not less than the amount (including any
  applicable premium) due to Holders of any series of APS by reason of
  redemption of such shares or such redemption date, and (b) the Discounted
  Value of Moody&#146;s Eligible Assets (if Moody&#146;s is then rating the APS) and
  S&amp;P Eligible Assets (if S&amp;P is then rating the APS) each at least
  equals the Preferred Stock Basic Maintenance Amount, and would at least equal
  the Preferred Stock Basic Maintenance Amount immediately subsequent to such
  redemption if such redemption were to occur on such date. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Mandatory Redemption.
</I>The Fund shall
  redeem, at a redemption price equal to $25,000 per share plus accumulated but
  unpaid dividends thereon (whether or not earned or declared) to (but not
  including) the date fixed by the Board of Directors for redemption, certain
  shares of APS, if the Fund fails to have either Moody&#146;s Eligible Assets or
  S&amp;P Eligible Assets with a Discounted Value greater than or equal to the
  Preferred Stock Basic Maintenance Amount or fails to maintain the Investment
  Company Act Preferred Stock Asset Coverage, in accordance with the
  requirements of the rating agency or agencies then rating the APS, and such
  failure is not cured on or before the Preferred Stock Basic Maintenance Cure
  Date or the Investment Company Act Cure Date, as the case may be. The number
  of shares of APS to be redeemed shall be equal to the lesser of (i) the
  minimum number of shares of APS, together with all other shares of Preferred
  Stock subject to redemption or retirement, the redemption of which, if deemed
  to have occurred immediately prior to the opening of business on the Cure
  Date, would have resulted in the Fund&#146;s having Moody&#146;s Eligible Assets and
  S&amp;P Eligible Assets with a Discounted Value greater than or equal to the
  Preferred Stock Basic Maintenance Amount or maintaining the Investment
  Company Act Preferred Stock Asset Coverage, as the case may be, on such Cure
  Date (<I>provided, however, </I>that
  if there is no such minimum number of shares of APS and other shares of
  Preferred Stock the redemption or retirement of which would have had such
  result, all shares of APS and other Preferred Stock then outstanding shall be
  redeemed), and (ii) the maximum number of shares of APS, together with all
  other shares of Preferred Stock subject to redemption or retirement, that can
  be redeemed out of funds expected to be legally available therefor in
  accordance with the Charter and applicable law. In determining the shares of
  APS required to be redeemed in accordance with the foregoing, the Fund shall
  allocate the number required to be redeemed to satisfy the Preferred Stock
  Basic Maintenance Amount or the Investment Company Act Preferred Stock Asset
  Coverage, as the case may be, pro rata among shares of APS and other
  Preferred Stock (and, then, pro rata among each series of APS) subject to
  redemption or retirement. The Fund shall effect such redemption on the date
  fixed by the Fund therefor, which date shall not be earlier than 20 days nor
  later than 22 days after such Cure Date, except that if the Fund does not
  have funds legally available for the redemption of all of the required number
  of shares of APS and other Preferred Stock which are subject to redemption or
  retirement or the Fund otherwise is unable to effect such redemption on or
  prior to 22 days after such Cure Date, the</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-22</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Fund shall
  redeem those shares of APS and other Preferred Stock which it was unable to
  redeem on the earliest practicable date on which it is able to effect such
  redemption. If fewer than all of the outstanding shares of a series of APS
  are to be redeemed pursuant to this paragraph (b), the number of shares of
  such series to be redeemed shall be redeemed pro rata from the Holders of
  shares of such series in proportion to the number of shares of such series
  held by such Holders. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notice of Redemption.
</I>If the Fund shall
  determine or be required to redeem shares of a series of APS pursuant to
  paragraph (a) or (b) of this Section 8, it shall mail a Notice of Redemption
  with respect to such redemption by first-class mail, postage prepaid, to (i)
  each Holder of the shares of such series to be redeemed, at such Holder&#146;s
  address as the same appears on the record books of the Fund on the record
  date established by the Board of Directors (ii) to Moody&#146;s, if Moody&#146;s is
  then rating the APS and to S&amp;P, if S&amp;P is then rating the APS. Such
  Notice of Redemption shall be so mailed not less than 20 nor more than 45
  days prior to the date fixed for redemption and (iii) to the Auction Agent.
  Each such Notice of Redemption shall state: (i) the redemption date; (ii) the
  number of shares of APS to be redeemed and the series thereof; (iii) the
  CUSIP number for shares of such series; (iv) the Redemption Price; (v) the
  place or places where the certificate(s) for such shares (properly endorsed
  or assigned for transfer, if the Board of Directors shall so require and the
  Notice of Redemption shall so state) are to be surrendered for payment of the
  Redemption Price; (vi) that dividends on the shares to be redeemed will cease
  to accumulate on such redemption date; and (vii) that the holders of any
  shares of a series of APS being so redeemed shall not participate in the Auction,
  if any, immediately preceding the redemption date; and (viii) the provisions
  of this Section 8 under which such redemption is made. If fewer than all
  shares of a series of APS held by any Holder are to be redeemed, the Notice
  of Redemption mailed to such Holder shall also specify the number of shares
  of such series to be redeemed from such Holder. The Fund may provide in any
  Notice of Redemption relating to a redemption contemplated to be effected
  pursuant to paragraph (a) of this Section 8 that such redemption is subject
  to one or more conditions precedent and that the Fund shall not be required
  to effect such redemption unless each such condition shall have been
  satisfied at the time or times and in the manner specified in such Notice of
  Redemption. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Redemption Under
Certain Circumstances. </I>Notwithstanding
  the provisions of paragraphs (a) or (b) of this Section 8, if any dividends
  on shares of a series of APS (whether or not earned or declared) are in
  arrears, no shares of such series shall be redeemed unless all outstanding
  shares of such series are simultaneously redeemed, and the Fund shall not
  purchase or otherwise acquire any shares of such series; <I>provided, however, </I>that the foregoing
  shall not prevent the purchase or acquisition of all outstanding shares of
  such series pursuant to the successful completion of an otherwise lawful
  purchase or exchange offer made on the same terms to, and accepted by,
  Holders of all outstanding shares of such series. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Absence of Funds
Available for Redemption. </I>To
  the extent that any redemption for which Notice of Redemption has been mailed
  is not made by reason of the absence of legally available funds therefor in
  accordance with the Charter and applicable law, such redemption shall be made
  as soon as practicable to the extent such funds become available. Failure to
  redeem shares of APS shall be deemed to exist at any time after the date
  specified for redemption in a Notice of Redemption when the Fund shall have failed,
  for any reason whatsoever, to deposit in trust with the Auction Agent the
  Redemption Price with respect to any shares for which such Notice of
  Redemption has been mailed; <I>provided,
  however, </I>that the foregoing shall not apply in the case of the
  Fund&#146;s failure to deposit in trust with the Auction Agent the Redemption
  Price with respect to any shares where (1) the Notice of Redemption relating
  to such redemption provided that such redemption was subject to one or more
  conditions precedent and (2) any such condition precedent shall not have been
  satisfied at the time or times and in the manner specified in such Notice of
  Redemption. Notwithstanding the fact that the Fund may not have redeemed
  shares of APS for which a Notice of Redemption has been mailed, dividends may
  be declared and paid on shares of APS and shall include those shares of APS
  for which a Notice of Redemption has been mailed.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Auction Agent as
Director of Redemption Payments by
  Fund. </I>All moneys paid to the Auction Agent for payment of the
  Redemption Price of shares of APS called for redemption shall be held in
  trust by the Auction Agent for the benefit of Holders of shares so to be
  redeemed. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Shares for Which
Notice of Redemption Has Been
  Given Are no Longer Outstanding. </I>Provided a Notice of Redemption
  has been mailed pursuant to paragraph (c) of this Section 8, upon the deposit
  with the</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-23</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>Auction
  Agent (on the Business Day next preceding the date fixed for redemption
  thereby, in funds available on the next Business Day in The City of New York,
  New York) of funds sufficient to redeem the shares of APS that are the
  subject of such notice, dividends on such shares shall cease to accumulate
  and such shares shall no longer be deemed to be outstanding for any purpose,
  and all rights of the Holders of the shares so called for redemption shall
  cease and terminate, except the right of such Holders to receive the
  Redemption Price, but without any interest or other additional amount, except
  as provided in subparagraph (e)(i) of Section 2 of this Part I. Upon
  surrender in accordance with the Notice of Redemption of the certificates for
  any shares so redeemed (properly endorsed or assigned for transfer, if the
  Board of Directors shall so require and the Notice of Redemption shall so
  state), the Redemption Price shall be paid by the Auction Agent to the
  Holders of shares of APS subject to redemption. In the case that fewer than
  all of the shares represented by any such certificate are redeemed, a new certificate
  shall be issued, representing the unredeemed shares, without cost to the
  Holder thereof. The Fund shall be entitled to receive from the Auction Agent,
  promptly after the date fixed for redemption, any cash deposited with the
  Auction Agent in excess of (i) the aggregate Redemption Price of the shares
  of APS called for redemption on such date and (ii) all other amounts to which
  Holders of shares of APS called for redemption may be entitled. Any funds so
  deposited that are unclaimed at the end of 90 days from such redemption date
  shall, to the extent permitted by law, be repaid to the Fund, after which
  time the Holders of shares of APS so called for redemption may look only to
  the Fund for payment of the Redemption Price and all other amounts to which
  they may be entitled.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Compliance with
Applicable Law. </I>In
  effecting any redemption pursuant to this Section 8, the Fund shall use its
  best efforts to comply with all applicable conditions precedent to effecting
  such redemption under the Investment Company Act and any applicable Maryland
  law, but shall effect no redemption except in accordance with the Investment
  Company Act and any applicable Maryland law. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Only Whole Shares of
APS May Be Redeemed. </I>In
  the case of any redemption pursuant to this Section 8, only whole shares of
  APS shall be redeemed, and in the event that any provision of the Charter
  would require redemption of a fractional share, the Auction Agent shall be
  authorized to round up so that only whole shares are redeemed. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Modification of
Redemption Procedures. </I>Notwithstanding
  any of the foregoing provisions of this Section 8, the Fund may modify any or
  all of the requirements relating to the Notice of Redemption provided that
  (i) any such modification does not materially and adversely affect any Holder
  of shares of the relevant series of APS, and (ii) the Fund receives written
  notice from Moody&#146;s (if Moody&#146;s is then rating the APS) and S&amp;P (if
  S&amp;P is then rating the APS) that such modification would not impair the
  ratings assigned by Moody&#146;s and S&amp;P to shares of APS. </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>9.</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Liquidation Rights.<A NAME=C011></A></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Distributions Upon
Liquidation. </I>Upon the
  dissolution, liquidation or winding up of the affairs of the Fund, whether
  voluntary or involuntary, the Holders of shares of all series of APS then
  outstanding shall be entitled to receive and to be paid out of the assets of
  the Fund available for distribution to its shareholders, before any payment
  or distribution shall be made on the Common Stock or on any other class of
  shares of the Fund ranking junior to the APS upon dissolution, liquidation or
  winding up, an amount equal to the Liquidation Preference with respect to
  such shares plus an amount equal to all dividends thereon (whether or not
  earned or declared) accumulated but unpaid to (but not including) the date of
  final distribution in same day funds in connection with the liquidation of
  the Fund. After the payment to the Holders of shares of all series of APS of
  the full preferential amounts provided for in this paragraph (a), the Holders
  of shares of any series of APS as such shall have no right or claim to any of
  the remaining assets of the Fund.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Pro Rata
Distributions. </I>In the event the
  assets of the Fund available for distribution to the Holders of shares of all
  series of APS upon any dissolution, liquidation, or winding up of the affairs
  of the Fund, whether voluntary or involuntary, shall be insufficient to pay
  in full all amounts to which such Holders are entitled pursuant to paragraph
  (a) of this Section 9, no such distribution shall be made on account of any
  shares of any other class or series of Preferred Stock ranking on a parity
  with the APS with respect to the distribution of assets upon such
  dissolution, liquidation or winding up, unless proportionate distributive
  amounts shall be paid on account of the shares of all series of APS, ratably,
  in proportion to the full distrib-</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-24</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="4%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>utable
  amounts for which holders of all such parity shares are respectively entitled
  upon such dissolution, liquidation or winding up.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Rights of Junior
Shares. </I>Subject to the
  rights of the holders of shares of any series or class or classes of shares
  ranking on a parity with the APS with respect to the distribution of assets
  upon dissolution, liquidation or winding up of the affairs of the Fund, after
  payment shall have been made in full to the Holders of shares of all series
  of APS as provided in paragraph (a) of this Section 9, but not prior thereto,
  any other series or class or classes of shares ranking junior to the APS with
  respect to the distribution of assets upon dissolution, liquidation or
  winding up of the affairs of the Fund shall, subject to the respective terms
  and provisions (if any) applying thereto, be entitled to receive any and all
  assets remaining to be paid or distributed, and the Holders of shares of any
  series of APS shall not be entitled to share therein.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Certain Events Not
Constituting Liquidation. </I>Neither
  the sale of all or substantially all the property or business of the Fund,
  nor the merger or consolidation of the Fund into or with any business trust
  or corporation nor the merger or consolidation of any business trust or
  corporation into or with the Fund shall be a dissolution, liquidation or
  winding up, whether voluntary or involuntary, for the purposes of this
  Section 9.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>10.</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Certain Rating Agency Requirements and Restrictions.<A NAME=C012></A></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  so long as any shares of APS are outstanding and Moody&#146;s is then rating the
  APS, the Fund will perform all actions required by the Moody&#146;s Guidelines and
  will not engage in any transactions proscribed by restrictions set forth in
  the Moody&#146;s Guidelines, unless it has received written confirmation from
  Moody&#146;s that such noncompliance would not adversely affect the rating then
  assigned by Moody&#146;s to the APS.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  so long as any shares of APS are outstanding and S&amp;P is then rating the
  APS, the Fund will perform all actions required by the S&amp;P Guidelines and
  will not engage in any transactions proscribed by restrictions set forth in
  the S&amp;P Guidelines, unless it has received written confirmation from
  S&amp;P that such noncompliance would not adversely affect the rating then
  assigned by S&amp;P to the APS.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  so long as any shares of APS are outstanding and any Substitute Rating Agency
  is then rating the APS, the Fund will perform all actions required by the
  Substituted Rating Agency Guidelines relating to such Substitute Rating
  Agency and will not engage in any transactions proscribed by restrictions set
  forth in the Substituted Rating Agency Guidelines relating to such Substitute
  Rating Agency, unless it has received written confirmation from such
  Substituted Rating Agency that such noncompliance would not adversely affect
  the rating then assigned by such Substituted Rating Agency to the APS.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>11.</B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Miscellaneous.<A NAME=C013></A></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>No Fractional Shares.
No fractional shares of APS
  shall be issued.</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Status of Shares of
APS Redeemed, Exchanged or
  Otherwise Acquired by the Fund. </I>Shares of APS which are redeemed,
  exchanged or otherwise acquired by the Fund shall return to the status of
  authorized and unissued shares of Preferred Stock without designation as to
  series.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Board May Resolve
Ambiguities. </I>To the
  extent permitted by applicable law, the Board of Directors may interpret or
  adjust the provisions of these Articles Supplementary to resolve any inconsistency
  or ambiguity or to remedy any formal defect, and may amend these Articles
  Supplementary with respect to any series of APS prior to the issuance of
  shares of such series.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Headings Not
Determinative. </I>The headings
  contained in these Articles Supplementary are for convenience of reference
  only and shall not affect the meaning or interpretation of these Articles
  Supplementary.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I>Notices. </I>All
notices or communications,
  unless otherwise specified in the Bylaws of the Fund or these Articles
  Supplementary, shall be sufficiently given if in writing and delivered in
  person or mailed by first-class mail, postage prepaid.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-25</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P ALIGN=CENTER><A NAME=C014></A><FONT SIZE=2><B>PART II.</B></FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>1.</B></FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B>Orders.<A NAME=C015></A></B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
  <I>Prior to the Submission Deadline on each
  Auction Date for shares of a series of APS:</I></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  each Beneficial Owner of shares of such series may submit to its
  Broker-Dealer by telephone or otherwise information as to:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of Outstanding shares, if any, of such series held by such
  Beneficial Owner which such Beneficial Owner desires to continue to hold
  without regard to the Applicable Dividend Rate for shares of such series for
  the next Subsequent Dividend Period of such shares;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  the number of Outstanding shares, if any, of such series held by such
  Beneficial Owner which such Beneficial Owner offers to sell if the Applicable
  Dividend Rate for shares of such series for the next Subsequent Dividend
  Period of shares of such series shall be less than the rate per annum
  specified by such Beneficial Owner; and/or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  the number of Outstanding shares, if any, of such series held by such Beneficial
  Owner which such Beneficial Owner offers to sell without regard to the
  Applicable Dividend Rate for shares of such series for the next Subsequent
  Dividend Period of shares of such series; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  one or more Broker-Dealers, using lists of Potential Beneficial Owners, shall
  in good faith for the purpose of conducting a competitive Auction in a
  commercially reasonable manner, contact Potential Beneficial Owners (by
  telephone or otherwise), including Persons that are not Beneficial Owners, on
  such lists to determine the number of shares, if any, of such series which
  each such Potential Beneficial Owner offers to purchase if the Applicable
  Dividend Rate for shares of such series for the next Subsequent Dividend
  Period of shares of such series shall not be less than the rate per annum
  specified by such Potential Beneficial Owner.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
  the purposes hereof, the communication by a Beneficial Owner or Potential
  Beneficial Owner to a Broker-Dealer, or by a Broker-Dealer to the Auction
  Agent, of information referred to in clause (i)(A), (i)(B), (i)(C) or (ii) of
  this paragraph (a) is hereinafter referred to as an &#147;Order&#148; and collectively
  as &#147;Orders&#148; and each Beneficial Owner and each Potential Beneficial Owner
  placing an Order with a Broker-Dealer, and such Broker-Dealer placing an
  order with the Auction Agent, is hereinafter referred to as a &#147;Bidder&#148; and
  collectively as &#147;Bidders&#148;; an Order containing the information referred to in
  clause (i)(A) of this paragraph (a) is hereinafter referred to as a &#147;Hold
  Order&#148; and collectively as &#147;Hold Orders&#148;; an Order containing the information
  referred to in clause (i)(B) or (ii) of this paragraph (a) is hereinafter
  referred to as a &#147;Bid&#148; and collectively as &#147;Bids&#148;; and an Order containing the
  information referred to in clause (i)(C) of this paragraph (a) is hereinafter
  referred to as a &#147;Sell Order&#148; and collectively as &#147;Sell Orders.&#148;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (b) A Bid by a Beneficial Owner or an Existing Holder of shares of a series
  of APS subject to an Auction on any Auction Date shall constitute an
  irrevocable offer to sell:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of Outstanding shares of such series specified in such Bid if the
  Applicable Dividend Rate for shares of such series determined on such Auction
  Date shall be less than the rate specified therein;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  such number or a lesser number of Outstanding shares of such series to be
  determined as set forth in clause (iv) of paragraph (a) of this Part II if
  the Applicable Dividend Rate for shares of such series determined on such
  Auction Date shall be equal to the rate specified therein; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  the number of Outstanding shares of such series specified in such Bid if the
  rate specified therein shall be higher than the Maximum Dividend Rate for
  shares of such series, or such number or a lesser number of Outstanding
  shares of such series to be determined as set forth in clause (iii) of
  paragraph (b) of Section 4 of this Part II if the rate specified therein
  shall be higher than the Maximum Dividend Rate for shares of such series and
  Sufficient Clearing Bids for shares of such series do not exist.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-26</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  A Sell Order by a Beneficial Owner or an Existing Holder of shares of a
  series of APS subject to an Auction on any Auction Date shall constitute an
  irrevocable offer to sell:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of Outstanding shares of such series specified in such Sell Order;
  or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  such number or a lesser number of Outstanding shares of such series as set
  forth in clause (iii) of paragraph (b) of Section 4 of this Part II if
  Sufficient Clearing Bids for shares of such series do not exist; <I>provided, however, </I>that a Broker-Dealer
  that is an Existing Holder with respect to shares of a series of APS shall
  not be liable to any Person for failing to sell such shares pursuant to a
  Sell Order described in the proviso to paragraph (c) of Section 2 of this
  Part II if (1) such shares were transferred by the Beneficial Owner thereof
  without compliance by such Beneficial Owner or its transferee Broker-Dealer
  (or other transferee person, if permitted by the Fund) with the provisions of
  Section 6 of this Part II or (2) such Broker-Dealer has informed the Auction
  Agent pursuant to the terms of its Broker-Dealer Agreement that, according to
  such Broker-Dealer&#146;s records, such Broker-Dealer believes it is not the
  Existing Holder of such shares.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  A Bid by a Potential Beneficial Owner or a Potential Holder of shares of a
  series of APS subject to an Auction on any Auction Date shall constitute an
  irrevocable offer to purchase:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of Outstanding shares of such series specified in such Bid if the
  Applicable Dividend Rate for shares of such series determined on such Auction
  Date shall be higher than the rate specified therein; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  such number or a lesser number of Outstanding shares of such series as set
  forth in clause (v) of paragraph (a) of Section 4 of this Part II if the
  Applicable Dividend Rate for shares of such series determined on such Auction
  Date shall be equal to the rate specified therein.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
  No Order for any number of shares of APS other than whole shares shall be
  valid.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
  A Bid by a Potential Beneficial Owner or a Potential Holder specifying a rate
  higher than the Maximum Dividend Rate for shares of APS on the Auction Date
  will not be accepted.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>2.</B></FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><A NAME=C016></A>Submission of Orders by Broker-Dealers to Auction Agent.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
  Each Broker-Dealer shall submit in writing to the Auction Agent prior to the
  Submission Deadline on each Auction Date all Orders for shares of APS of a
  series subject to an Auction on such Auction Date obtained by such
  Broker-Dealer, designating itself (unless otherwise permitted by the Fund) as
  an Existing Holder in respect of shares subject to Orders submitted or deemed
  submitted to it by Beneficial Owners and as a Potential Holder in respect of
  shares subject to Orders submitted to it by Potential Beneficial Owners, and
  shall specify with respect to each Order for such shares:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  the name of the Bidder placing such Order (which shall be the Broker-Dealer
  unless otherwise permitted by the Fund);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  the aggregate number of shares of such series that are the subject of such
  Order;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  to the extent that such Bidder is an Existing Holder of shares of such
  series:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of shares, if any, of such series subject to any Hold Order of
  such Existing Holder;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  the number of shares, if any, of such series subject to any Bid of such
  Existing Holder and the rate specified in such Bid; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  the number of shares, if any, of such series subject to any Sell Order of
  such Existing Holder; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
  to the extent such Bidder is a Potential Holder of shares of such series, the
  rate and number of shares of such series specified in such Potential Holder&#146;s
  Bid.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
  If any rate specified in any Bid contains more than three figures to the
  right of the decimal point, the Auction Agent shall round such rate up to the
  next highest one thousandth (.001) of 1%.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-27</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
  (c) If an Order or Orders covering all of the outstanding shares of a series
  of APS held by any Existing Holder is not submitted to the Auction Agent
  prior to the Submission Deadline, the Auction Agent shall deem a Hold Order
  to have been submitted by or on behalf of such Existing Holder covering the
  number of Outstanding shares of such series held by such Existing Holder and
  not subject to Orders submitted to the Auction Agent; <I>provided, however, </I>that if an Order or
  Orders covering all of the Outstanding shares of such series held by any
  Existing Holder is not submitted to the Auction Agent prior to the Submission
  Deadline for an Auction relating to a Special Dividend Period consisting of
  more than 28 days, the Auction Agent shall deem a Sell order to have been
  submitted by or on behalf of such Existing Holder covering the number of
  outstanding shares of such series held by such Existing Holder and not
  subject to Orders submitted to the Auction Agent.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
  If one or more Orders of an Existing Holder is submitted to the Auction Agent
  covering in the aggregate more than the number of Outstanding shares of a
  series of APS subject to an Auction held by such Existing Holder, such Orders
  shall be considered valid in the following order of priority:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  all Hold Orders for shares of such series shall be considered valid, but only
  up to and including in the aggregate the number of Outstanding shares of such
  series held by such Existing Holder, and if the number of shares of such
  series subject to such Hold Orders exceeds the number of Outstanding shares
  of such series held by such Existing Holder, the number of shares subject to
  each such Hold Order shall be reduced pro rata to cover the number of
  Outstanding shares of such series held by such Existing Holder;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  any Bid for shares of such series shall be considered valid up to and
  including the excess of the number of Outstanding shares of such series held
  by such Existing Holder over the number of shares of such series subject to
  any Hold Orders referred to in clause (i) above;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  subject to subclause (A), if more than one Bid of an Existing Holder for
  shares of such series is submitted to the Auction Agent with the same rate
  and the number of Outstanding shares of such series subject to such Bids is greater
  than such excess, such Bids shall be considered valid up to and including the
  amount of such excess, and the number of shares of such series subject to
  each Bid with the same rate shall be reduced pro rata to cover the number of
  shares of such series equal to such excess;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  subject to subclauses (A) and (B), if more than one Bid of an Existing Holder
  for shares of such series is submitted to the Auction Agent with different
  rates, such Bids shall be considered valid in the ascending order of their
  respective rates up to and including the amount of such excess; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)
  in any such event, the number, if any, of such Outstanding shares of such
  series subject to any portion of Bids considered not valid in whole or in
  part under this clause (ii) shall be treated as the subject of a Bid for
  shares of such series by or on behalf of a Potential Holder at the rate
  therein specified; and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  all Sell Orders for shares of such series shall be considered valid up to and
  including the excess of the number of Outstanding shares of such series held
  by such Existing Holder over the sum of shares of such series subject to
  valid Hold Orders referred to in clause (i) above and valid Bids referred to
  in clause (ii) above.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
  If more than one Bid for one or more shares of a series of APS is submitted
  to the Auction Agent by or on behalf of any Potential Holder, each such Bid
  submitted shall be a separate Bid with the rate and number of shares therein
  specified.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
  Any Order submitted by a Beneficial Owner or a Potential Beneficial Owner to
  its Broker-Dealer, or by a Broker-Dealer to the Auction Agent, prior to the
  Submission Deadline on any Auction Date, shall be irrevocable.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>3.</B></FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2><B><A NAME=C017></A>Determination of Sufficient Clearing Bids, Winning Bids Rate and
  Applicable Dividend Rate.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
  Not earlier than the Submission Deadline on each Auction Date for shares of a
  series of APS, the Auction Agent shall assemble all valid Orders submitted or
  deemed submitted to it by the Broker-Dealers in</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-28</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px">
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="85%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>respect of
  shares of such series (each such Order as submitted or deemed submitted by a
  Broker-Dealer being hereinafter referred to individually as a &#147;Submitted Hold
  Order,&#148; a &#147;Submitted Bid&#148; or a &#147;Submitted Sell Order,&#148; as the case may be, or
  as a &#147;Submitted Order&#148; and collectively as &#147;Submitted Hold Orders,&#148;
  &#147;Submitted Bids&#148; or &#147;Submitted Sell Orders,&#148; as the case may be, or as
  &#147;Submitted Orders&#148;) and shall determine for such series:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  the excess of the number of Outstanding shares of such series over the number
  of Outstanding shares of such series subject to Submitted Hold Orders (such
  excess being hereinafter referred to as the &#147;Available APS&#148; of such series);</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  from the Submitted Orders for shares of such series whether:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  the number of Outstanding shares of such series subject to Submitted Bids of
  Potential Holders specifying one or more rates equal to or lower than the
  Maximum Dividend Rate for shares of such series exceeds or is equal to the
  sum of:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  the number of Outstanding shares of such series subject to Submitted Bids of
  Existing Holders specifying one or more rates higher than the Maximum
  Dividend Rate for shares of such series; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C)
  the number of Outstanding shares of such series subject to Submitted Sell
  Orders in the event such excess or such equality exists (other than because
  the number of shares of such series in subclauses (B) and (C) above is zero
  because all of the Outstanding shares of such series are subject to Submitted
  Hold Orders), such Submitted Bids in subclause (A) above being hereinafter
  referred to collectively as &#147;Sufficient Clearing Bids&#148; for shares of such
  series); and </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  if Sufficient Clearing Bids for shares of such series exist, the lowest rate
  specified in such Submitted Bids (the &#147;Winning Bid Rate&#148; for shares of such
  series) which if:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)
  (I) each such Submitted Bid of Existing Holders specifying such lowest rate
  and (II) all other such Submitted Bids of Existing Holders specifying lower
  rates were rejected, thus entitling such Existing Holders to continue to hold
  the shares of such series that are subject to such Submitted Bids; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B)
  (I) each such Submitted Bid of Potential Holders specifying such lowest rate
  and (II) all other such Submitted Bids of Potential Holders specifying lower
  rates were accepted;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD COLSPAN="4" VALIGN=TOP>
<P><FONT SIZE=2>would result
  in such Existing Holders described in subclause (A) above continuing to hold
  an aggregate number of Outstanding shares of such series which, when added to
  the number of Outstanding shares of such series to be purchased by such
  Potential Holders described in subclause (B) above, would equal not less than
  the Available APS of such series.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="3" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
  Promptly after the Auction Agent has made the determinations pursuant to
  paragraph (a) of this Section 3, the Auction Agent shall advise the Fund of
  the Maximum Dividend Rate for shares of the series of APS for which an
  Auction is being held on the Auction Date and, based on such determination
  the Applicable Dividend Rate for shares of such series for the next
  Subsequent Dividend Period thereof as follows:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  if Sufficient Clearing Bids for shares of such series exist, that the
  Applicable Dividend Rate for all shares of such series for the next
  Subsequent Dividend Period thereof shall be equal to the Winning Bid Rate for
  shares of such series so determined;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  if sufficient Clearing Bids for shares of such series do not exist (other
  than because all of the Outstanding shares of such series are subject to
  Submitted Hold Orders), that the Applicable Dividend Rate for all shares of
  such series for the next Subsequent Dividend Period thereof shall be equal to
  the Maximum Dividend Rate for shares of such series; or</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>

<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  if all of the Outstanding shares of such series are subject to Submitted Hold
  Orders, that the Applicable Dividend Rate for all shares of such series for
  the next Subsequent Dividend Period thereof shall be the All Hold Rate.</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-29</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>


<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>4.<A NAME=C018></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Acceptance and Rejection of Submitted Bids and Submitted Sell Orders
  and Allocation of Shares.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Existing
Holders shall continue to hold the shares of APS that are subject to Submitted
Hold Orders, and, based on the determinations made pursuant to paragraph (a) of
Section 3 of this Part II, the Submitted Bids and Submitted Sell Orders shall
be accepted or rejected by the Auction Agent and the Auction Agent shall take
such other action as set forth below:</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
  If Sufficient Clearing Bids for shares of a series of APS have been made, all
  Submitted Sell Orders with respect to shares of such series shall be accepted
  and, subject to the provisions of paragraphs (d) and (e) of this Section 4,
  Submitted Bids with respect to shares of such series shall be accepted or
  rejected as follows in the following order of priority and all other
  Submitted Bids with respect to shares of such series shall be rejected:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  Existing Holders&#146; Submitted Bids for shares of such series specifying any
  rate that is higher than the Winning Bid Rate for shares of such series shall
  be accepted, thus requiring each such Existing Holder to sell the shares of
  APS subject to such Submitted Bids;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  Existing Holders&#146; Submitted Bids for shares of such series specifying any
  rate that is lower than the Winning Bid Rate for shares of such series shall
  be rejected, thus entitling each such Existing Holder to continue to hold the
  shares of APS subject to such Submitted Bids;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  Potential Holders&#146; Submitted Bids for shares of such series specifying any
  rate that is lower than the Winning Bid Rate for shares of such series shall
  be accepted;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)
  each Existing Holder&#146;s Submitted Bid for shares of such series specifying a
  rate that is equal to the Winning Bid Rate for shares of such series shall be
  rejected, thus entitling such Existing Holder to continue to hold the shares
  of APS subject to such Submitted Bid, unless the number of Outstanding shares
  of APS subject to all such Submitted Bids shall be greater than the number of
  shares of APS (&#147;remaining shares&#148;) in the excess of the Available APS of such
  series over the number of shares of APS subject to Submitted Bids described
  in clauses (ii) and (iii) of this paragraph (a), in which event such
  Submitted Bid of such Existing Holder shall be rejected in part, and such
  Existing Holder shall be entitled to continue to hold shares of APS subject
  to such Submitted Bid, but only in an amount equal to the number of shares of
  APS of such series obtained by multiplying the number of remaining shares by
  a fraction, the numerator of which shall be the number of Outstanding shares
  of APS held by such Existing Holder subject to such Submitted Bid and the
  denominator of which shall be the aggregate number of Outstanding shares of
  APS subject to such Submitted Bids made by all such Existing Holders that
  specified a rate equal to the Winning Bid Rate for shares of such series; and
  </FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)
  each Potential Holder&#146;s Submitted Bid for shares of such series specifying a
  rate that is equal to the Winning Bid Rate for shares of such series shall be
  accepted but only in an amount equal to the number of shares of such series
  obtained by multiplying the number of shares in the excess of the Available
  APS of such series over the number of shares of APS subject to Submitted Bids
  described in clauses (ii) through (iv) of this paragraph (a) by a fraction,
  the numerator of which shall be the number of Outstanding shares of APS subject
  to such Submitted Bid and the denominator of which shall be the aggregate
  number of Outstanding shares of APS subject to such Submitted Bids made by
  all such Potential Holders that specified a rate equal to the Winning Bid
  Rate for shares of such series.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
  If Sufficient Clearing Bids for shares of a series of APS have not been made
  (other than because all of the Outstanding shares of such series are subject
  to Submitted Hold Orders), subject to the provisions of paragraph (d) of this
  Section 4, Submitted Orders for shares of such series shall be accepted or
  rejected as follows in the following order of priority and all other
  Submitted Bids for shares of such series shall be rejected:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  Existing Holders&#146; Submitted Bids for shares of such series specifying any
  rate that is equal to or lower than the Maximum Dividend Rate for shares of
  such series shall be rejected, thus entitling such Existing Holders to
  continue to hold the shares of APS subject to such Submitted Bids;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  Potential Holders&#146; Submitted Bids for shares of such series specifying any
  rate that is equal to or lower than the Maximum Dividend Rate for shares of
  such series shall be accepted; and</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-30</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  Each Existing Holder&#146;s Submitted Bid for shares of such series specifying any
  rate that is higher than the Maximum Dividend Rate for shares of such series
  and the Submitted Sell Orders for shares of such series of each Existing
  Holder shall be accepted, thus entitling each Existing Holder that submitted
  or on whose behalf was submitted any such Submitted Bid or Submitted Sell
  Order to sell the shares of such series subject to such Submitted Bid or
  Submitted Sell Order, but in both cases only in an amount equal to the number
  of shares of such series obtained by multiplying the number of shares of such
  series subject to Submitted Bids described in clause (ii) of this paragraph
  (b) by a fraction, the numerator of which shall be the number of Outstanding
  shares of such series held by such Existing Holder subject to such Submitted
  Bid or Submitted Sell Order and the denominator of which shall be the
  aggregate number of Outstanding shares of such series subject to all such
  Submitted Bids and Submitted Sell Orders.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
  If all of the Outstanding shares of a series of APS are subject to Submitted
  Hold Orders, all Submitted Bids for shares of such series shall be rejected.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)
  If, as a result of the procedures described in clause (iv) or (v) of
  paragraph (a) or clause (iii) of paragraph (b) of this Section 4, any
  Existing Holder would be entitled or required to sell, or any Potential
  Holder would be entitled or required to purchase, a fraction of a share of a
  series of APS on any Auction Date, the Auction Agent shall, in such manner as
  it shall determine in its sole discretion, round up or down the number of
  shares of such series of APS to be purchased or sold by any Existing Holder
  or Potential Holder on such Auction Date as a result of such procedures so that
  the number of shares so purchased or sold by each Existing Holder or
  Potential Holder on such Auction Date shall be whole shares of APS.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
  If, as a result of the procedures described in clause (v) of paragraph (a) of
  this Section 4, any Potential Holder would be entitled or required to
  purchase less than a whole share of a series of APS on any Auction Date, the
  Auction Agent shall, in such manner as it shall determine in its sole
  discretion, allocate shares of APS of such series for purchase among
  Potential Holders so that only whole shares of APS of such series are
  purchased on such Auction Date as a result of such procedures by any
  Potential Holder, even if such allocation results in one or more Potential
  Holders not purchasing shares of APS of such series on such Auction Date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)
  Based on the results of each Auction for shares of a series of APS, the
  Auction Agent shall determine the aggregate number of shares of such series
  to be purchased and the aggregate number of shares of such series to be sold
  by Potential Holders and Existing Holders and, with respect to each Potential
  Holder and Existing Holder, to the extent that such aggregate number of
  shares to be purchased and such aggregate number of shares to be sold differ,
  determine to which other Potential Holder(s) or Existing Holder(s) they shall
  deliver, or from which other Potential Holder(s) or Existing Holder(s) they
  shall receive, as the case may be, shares of APS of such series.
  Notwithstanding any provision of the Auction Procedures to the contrary, in
  the event an Existing Holder or Beneficial Owner of a series of APS with
  respect to whom a Broker-Dealer submitted a Bid to the Auction Agent for such
  shares that was accepted in whole or in part, or submitted or is deemed to
  have submitted a Sell Order for such shares that was accepted in whole or in
  part, fails to instruct its Agent Member to deliver such shares against
  payment therefor, partial deliveries of shares of APS that have been made in
  respect of Potential Holders&#146; or Potential Beneficial Owners&#146; submitted Bids
  for shares of such series that have been accepted in whole or in part shall
  constitute good delivery to such Potential Holders and Potential Beneficial
  Owners.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)
  Neither the Fund nor the Auction Agent nor any affiliate of either shall have
  any responsibility or liability with respect to the failure of an Existing
  Holder, a Potential Holder, a Beneficial Owner, a Potential Beneficial Owner
  or its respective Agent Member to deliver shares of any series of APS or to
  pay for shares of any series of APS sold or purchased pursuant to the Auction
  Procedures or otherwise.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>5.<A NAME=C019></A></B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Auction Agent.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;For
so long as shares of any series of APS are outstanding, the Auction Agent, duly
appointed by the Fund to so act, shall be in each case a commercial bank, trust
company or other financial institution independent of the Fund and its
affiliates (which however may engage or have engaged in business transactions
with the Fund or its affiliates) and at no time shall the Fund or any of its
affiliates act as the Auction Agent in connection with the Auction Procedures.
If the Auction Agent resigns or for any reason its appointment is terminated
during any period that shares of any series of APS are outstanding, the Board
of Directors shall use its best efforts promptly</FONT></P>

<P ALIGN=CENTER><FONT SIZE=2>A-31</FONT></P>

<HR NOSHADE ALIGN=CENTER WIDTH="100%" SIZE=4><P ALIGN=LEFT STYLE='PAGE-BREAK-BEFORE: ALWAYS'></P><PAGE>

<P><FONT SIZE=2>thereafter to
appoint another qualified commercial bank, trust company or financial
institution to act as the Auction Agent. The Auction Agent&#146;s registry of
Existing Holders of a series of APS shall be conclusive and binding on the
Broker-Dealers. A Broker-Dealer may inquire of the Auction Agent between 3:00
p.m. on the Business Day preceding an Auction for a series of APS and 9:30 a.m.
on the Auction Date for such Auction to ascertain the number of shares of such
series in respect of which the Auction Agent has determined such Broker-Dealer
to be an Existing Holder. If such Broker-Dealer believes it is the Existing
Holder of fewer shares of such series than specified by the Auction Agent in
response to such Broker-Dealer&#146;s inquiry, such Broker-Dealer may so inform the
Auction Agent of that belief. Such Broker-Dealer shall not, in its capacity as
Existing Holder of shares of such series, submit Orders in such Auction in
respect of shares of such series covering in the aggregate more than the number
of shares of such series specified by the Auction Agent in response to such
Broker-Dealer&#146;s inquiry.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>6.<A NAME=C020></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Transfer of APS.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unless
otherwise permitted by the Fund, a Beneficial Owner or an Existing Holder may
sell, transfer or otherwise dispose of shares of any series of APS only in
whole shares and only pursuant to a Bid or Sell Order placed with the Auction
Agent in accordance with the procedures described in this Part II or to a
Broker-Dealer; <I>provided, however, </I>that
(a) a sale, transfer or other disposition of shares of APS from a customer of a
Broker-Dealer who is listed on the records of that Broker-Dealer as the holder
of such shares to that Broker-Dealer or another customer of that Broker-Dealer
shall not be deemed to be a sale, transfer or other disposition for purposes of
this Section 6 if such Broker-Dealer remains the Existing Holder of the shares
so sold, transferred or disposed of immediately after such sale, transfer or
disposition and (b) in the case of all transfers other than pursuant to
Auctions, the Broker-Dealer (or other Person, if permitted by the Fund) to whom
such transfer is made shall advise the Auction Agent of such transfer.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="95%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>7.<A NAME=C021></A></B></FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>Global Certificate.</B></FONT></P>
</TD>
</TR>
</TABLE>

<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Prior
to the commencement of a Voting Period, (i) all of the shares of a series of
APS outstanding from time to time shall be represented by one global
certificate registered in the name of the Securities Depository or its nominee
and (ii) no registration of transfer of shares of a series of APS shall be made
on the books of the Fund to any Person other than the Securities Depository or
its nominee.</FONT></P>

<TABLE ALIGN=CENTER  BORDER=0 CELLSPACING=0 CELLPADDING=0 WIDTH="100%">
<TR style="font-size:1px" >
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="5%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
<TD WIDTH="90%" VALIGN=TOP>
<P>&nbsp;</P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=2><B>8.<A NAME=C022></A></B></FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2><B>Force Majeure.</B></FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)
  Notwithstanding anything else set forth herein, if an Auction Date for shares
  of a series of APS is not a Business Day because the New York Stock Exchange
  is closed for business due to an &#147;act of God,&#148; natural disaster, act of war,
  civil or military disturbance, act of terrorism, sabotage, riots or a loss or
  malfunction of utilities or communications services or the Auction Agent is
  not able to conduct an Auction in accordance with the Auction Procedures for
  any such reason, then the Applicable Dividend Rate for shares of such series
  for the next Subsequent Dividend Period shall be the Applicable Dividend Rate
  most recently in effect for shares of such series, <I>provided, however, </I>that, if the affected Subsequent
  Dividend Period is a Special Dividend Period, the next Subsequent Dividend
  Period shall be a Standard Dividend Period and the Applicable Dividend Rate
  for shares of such series during such Standard Dividend Period shall be 80%
  of the Reference Rate applicable to such Standard Dividend Period.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD COLSPAN="2" VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)
  Notwithstanding anything else set forth herein, if a Dividend Payment Date is
  not a Business Day because the New York Stock Exchange is closed for business
  due to an act of God, natural disaster, act of war, civil or military
  disturbance, act of terrorism, sabotage, riots or a loss or malfunction of utilities
  or communications services or the dividend payable on such date can not be
  paid for any such reason, then:</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)
  the Dividend Payment Date for the affected Dividend Period shall be the next
  Business Day on which the Fund and the Paying Agent, if any, are able to
  cause the dividend to be paid using their reasonable best efforts;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)
  the affected Dividend Period shall end on the day it would have ended had
  such event not occurred and the Dividend Payment Date had remained the
  scheduled date; and</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
  the next Dividend Period will begin and end on the dates on which it would
  have begun and ended had such event not occurred and the Dividend Payment
  Date remained the scheduled date.</FONT></P>
</TD>
</TR>
<TR>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
<TD VALIGN=TOP>
<P><FONT SIZE=1>&nbsp;</FONT></P>
</TD>
</TR>
</TABLE>

<P ALIGN=CENTER><FONT SIZE=2>A-32</FONT></P>













<HR noshade  width="100%" size=3><PAGE>

<P align="center">
<FONT size=2 face="serif">PART C: OTHER INFORMATION </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 25</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Financial Statements and Exhibits</FONT></U><FONT size=2 face="serif"> </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=4% align=right>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=right>
      <div align="left"><FONT size=2 face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></div></TD>
        <TD colspan=2 align=left>
  <FONT size=2 face="serif">Financial Statements</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD colspan=2 align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
  <B><FONT size=2 face="serif">In Part A:</FONT></B>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD width=2% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=90% align=left>
  <FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Financial Highlights - Information Regarding Senior Securities</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD colspan=2 align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD colspan=2 align=left>
  <B><FONT size=2 face="serif">In Part B:</FONT></B>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Report of independent registered public accountants</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Schedule of Investments at December 31, 2005</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Statement of Assets and Liabilities at December 31, 2005</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Statement of Operations for the year ended December 31, 2005</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Statement of Changes in Net Assets for the years ended December 31, 2005 and 2004</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Statement of Cash Flows for the year ended December 31, 2005</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Notes to Financial Statements</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR align="left" valign="bottom">
    <TD colspan="4"></TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
        <TD align=right>
        <div align="left"><FONT size=2 face="serif">2.</FONT>
          </div></TD>
        <TD colspan="2" align=left>
  <FONT size=2 face="serif">Exhibits</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">a.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Articles of Incorporation (Incorporated by reference from post-effective amendment no.</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">46 to Registrant&#146;s registration statement under the Investment Company Act of 1940 on</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">a.2</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Amendment to Articles of Incorporation (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">amendment no. 46 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=4% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=left>
  <FONT size=2 face="serif">a.3</FONT>&nbsp;
        </TD>
        <TD width=89% align=left>
  <FONT size=2 face="serif">Second Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.4</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Articles Supplementary creating Remarketed Preferred Stock, Series A, B, C, D</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">and E (Incorporated by reference from post-effective amendment no. 46 to Registrant&#146;s</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.5</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Articles Supplementary creating Remarketed Preferred Stock, Series I</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">(Incorporated by reference from post-effective amendment no. 46 to Registrant&#146;s</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.6</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Third Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.7</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Fourth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.8</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Fifth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.9</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Sixth Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">a.10</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Seventh Amendment to Articles of Incorporation (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left>&nbsp;
</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left nowrap><FONT size=2 face="serif">a.11&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Form of Articles Supplementary Creating Series M, Series W and Series F of Auction Preferred Stock </FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">(Incorporated by reference from
        post-effective amendment No. 50 to Registrant&#146;s registration</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><font size="2">statement under the Investment Company Act
        of 1940 on Form N-2, no. 811-4915)</font></TD>
  </TR>
  <TR>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">a.12&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD align=left><font size="2">Form of Articles Supplementary Creating Series
        T and Series R of Auction Preferred Stock </font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><font size="2">(Incorporated by reference to Appendix A to the Statement
      of Additional Information) </font></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left>&nbsp;
</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">b.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Bylaws (Incorporated by reference from post-effective amendment no. 47 to Registrant&#146;s</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement under the Investment Company Act of 1940 on Form N-2, no. 811-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">c.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Specimen common stock certificate (Incorporated by reference from Registrant&#146;s</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement on Form N-2, no. 33-10421)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.2</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series A (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 2 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-22933)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.3</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series B (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-24101)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.4</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series C (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-24100)</FONT>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="4%" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width="3%" align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width="4%" align=left>
  <FONT size=2 face="serif">d.5</FONT>&nbsp;
        </TD>
        <TD width="89%" align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series D (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-24102)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.6</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series E (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-24099)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.7</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Remarketed Preferred Stock, Series I (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">from pre-effective amendment no. 2 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 33-22933)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR>
    <TD colspan=4></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left>&nbsp;
</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.8</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
  Series M  (Incorporated by reference</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">from pre-effective amendment no.
    1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">no. 333-130598)</FONT>&nbsp; </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.9</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
  Series W  (Incorporated by reference </FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">from pre-effective amendment no.
        1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">no. 333-130598)</FONT>&nbsp; </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">d.10&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of certificate of Auction Preferred Stock,
  Series F (Incorporated by reference </FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">from pre-effective amendment no.
        1 to Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">no. 333-130598)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">d.11&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp; </TD>
    <TD align=left><font size="2">Form of Certificate of Auction Preferred Stock,
        Series T </font></TD>
  </TR>
  <TR>
    <TD colspan=4>

</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">d.12&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp; </TD>
    <TD align=left><font size="2">Form of Certificate of Auction Preferred Stock,
    Series R </font></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">e.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Document setting forth the terms of Registrant&#146;s
  dividend reinvestment plan (Incorporated </FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">by reference from post-effective amendment
    no. 46 to Registrant's registration statement </FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">under the Investment Company Act of
    1940 on Form N-2, no. 811-4915) </FONT>&nbsp; </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">f.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">g.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Investment Advisory Agreement (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">amendment no. 39 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">g.2</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Service Agreement (Incorporated by reference from post-effective amendment no. 39 to</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">g.3</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Administration Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 39 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
    <TD colspan=4>

</TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">h.*</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Underwriting Agreement</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR>
    <TD colspan=4></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">i.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">j.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Custody Agreement (Incorporated by reference from post-effective amendment no. 45 to</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">j.2</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Foreign Custody Manager Agreement (Incorporated by reference from post-effective</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">amendment no. 45 to Registrant&#146;s registration statement under the Investment Company</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Fund Accounting Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 45 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.2</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Remarketing Agreement (Incorporated by reference from exhibit k.3 to</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">pre-effective amendment no. 3 to Registrant&#146;s registration statement on Form N-2, no.</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">33-22933)</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left></TD>
  </TR>
</TABLE>
<P> <FONT size=2 face="serif">* To be filed by amendment </FONT></P>
<BR>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=4% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD width=3% align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
        <TD width=4% align=left>
  <FONT size=2 face="serif">k.3&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD width=89% align=left>
  <FONT size=2 face="serif">Form of Paying Agent Agreement (Incorporated by reference from exhibit k.4 to</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">pre-effective amendment no. 3 to Registrant&#146;s registration statement on Form N-2, no.</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">33-22933)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.4</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Credit Agreement (Incorporated by reference from post-effective amendment no. 46 to</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Registrant&#146;s registration statement under the Investment Company Act of 1940 on Form</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.5</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Depositary Agreement (Incorporated by reference from post-effective amendment no. 46</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">to Registrant&#146;s registration statement under the Investment Company Act of 1940 on</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.6</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Letter Amendment to Depositary Agreement (Incorporated by reference from post-</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">effective amendment no. 46 to Registrant&#146;s registration statement under the Investment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.7</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Second Letter Amendment to Depositary Agreement (Incorporated by reference from</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">post-effective amendment no. 46 to Registrant&#146;s registration statement under the</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Investment Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.8</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Placement Agency Agreement (Incorporated by reference from post-effective amendment</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">no. 46 to Registrant&#146;s registration statement under the Investment Company Act of 1940</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.9</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Letter Amendment to Placement Agency Agreement (Incorporated by reference from</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">post-effective amendment no. 46 to Registrant&#146;s registration statement under the</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Investment Company Act of 1940 on Form N-2, no. 811-4915)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR>
    <TD colspan=4>

</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left>&nbsp;
</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.10&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Auction Agency Agreement</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">k.11</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Moody&#146;s Preferred Stock Guidelines (Incorporated
  by reference from </FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">pre-effective amendment no. 1 to
        Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">no. 333-130598)</FONT>&nbsp; </TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">k.12</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Form of Standard &amp; Poor&#146;s
        Preferred Stock Guidelines  (Incorporated
  by reference from</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">pre-effective amendment no. 1 to
        Registrant&#146;s registration statement on Form N-2,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">no. 333-130598)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left>&nbsp;
</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">l.1*</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Opinion and Consent of Mayer, Brown, Rowe &amp; Maw LLP</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">l.2*</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Opinion and Consent of DLA Piper Rudnick Gray Cary US LLP</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>

</TD>
    <TD align=left></TD>
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">m.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">n.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Consent of Independent Registered Public Accounting Firm</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">o.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">p.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Subscription Agreement for initial capital (Incorporated by reference from Registrant&#146;s</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement on Form N-2, no. 33-10421)</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">q.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Not applicable</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
        <TD colspan="4">&nbsp;
</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">r.1</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Amended and Restated Code of Ethics of Registrant
  (Incorporated by reference from </FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Registrant&#146;s registration statement
    on Form N-2, no. 333-130598)</FONT></TD>
  </TR>
  <TR>
        <TD colspan="4">


        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">r.2</FONT></TD>
        <TD align=left>
  <FONT size=2 face="serif">Amended and Restated Code of Ethics of Duff &amp; Phelps Investment Management Co.</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">(investment adviser to Registrant)</FONT> <FONT size=2 face="serif">(Incorporated by reference from Registrant&#146;s </FONT> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
  <FONT size=2 face="serif">registration statement on Form N-2, no. 333-130598)</FONT></TD>
  </TR>
  <TR>
        <TD colspan=4>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
        <TD align=left>
  <FONT size=2 face="serif">s.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Powers of Attorney</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left></TD>
  </TR>
</TABLE>

<P><FONT size=2 face="serif">* To be filed by amendment </FONT></P>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P>
<U><FONT size=2 face="serif">Item 26</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Marketing Arrangements</FONT></U><FONT size=2 face="serif"> </FONT></P>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;See Exhibit h to this Registration Statement.</FONT></P>

<P>
<U><FONT size=2 face="serif">Item 27</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Other Expenses of Issuance and Distribution</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following table sets forth the estimated expenses to be incurred in connection with the offering described in this registration statement: </FONT></P>
<TABLE width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD colspan="3" align=left><hr size="1" noshade>    </TD>
  </TR>
  <TR valign="bottom">
        <TD width=86% align=left>
        <div align="left"><FONT size=2 face="serif">Registration and filing fees</FONT>&nbsp;
          </div></TD>
        <TD width=1% align=right>
        <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD width=13% align=right><font size=2 face="serif">21,400</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Rating fees*</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><font size=2 face="serif">30,000</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Printing*</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><font size=2 face="serif">30,000</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Accounting fees and expenses*</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><font size=2 face="serif">35,000</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Legal fees and expenses*</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><font size=2 face="serif">35,000</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Miscellaneous*</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right><font size=2 face="serif">1,000</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=3>
  <HR noshade size=1>
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Total*</FONT>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT></div></TD>
        <TD align=right><font size=2 face="serif">152,400</font></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
    <TD align=right>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left><hr size="1" noshade></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="3" align=left>&nbsp; &nbsp; &nbsp; <FONT size=2 face="serif">* Estimated </FONT> </TD>
  </TR>
</TABLE>
<BR>
<P>
<U><FONT size=2 face="serif">Item 28</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Persons Controlled by or Under Common Control</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Fund does not consider that it is controlled, directly or indirectly, by any person.</FONT></P>
<P>
<U><FONT size=2 face="serif">Item 29</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Number of Holders of Securities</FONT></U><FONT size=2 face="serif"> </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
        <TD width=24% align=left>

          <div align="left"></div></TD>
        <TD width=76% align=center>
  <FONT size=2 face="serif">Number of</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=center>
  <FONT size=2 face="serif">Record Holders</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=right>
        <center>
          <U><FONT size=2 face="serif">Title of Class</FONT></U>&nbsp;
    </center></TD>
        <TD align=center>
  <U><FONT size=2 face="serif">March 31, 2006</FONT></U>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap>
        <div align="left"><FONT size=2 face="serif">Common Stock, &#36;.001 par
            value</FONT>&nbsp;
          </div></TD>
        <TD align=center>
  <FONT size=2 face="serif">23,114</FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right nowrap>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap>
        <div align="left"><FONT size=2 face="serif">Preferred Stock, &#36;.001
            par value</FONT>&nbsp;
          </div></TD>
        <TD align=center>
  <FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P>
<U><FONT size=2 face="serif">Item 30</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Indemnification</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P> <FONT face="serif"> <font size="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland
      law permits a corporation to include in its charter a provision limiting
      the liability of its directors and officers to the corporation and its
      stockholders for money damages, except for liability resulting from (a)
      actual receipt of an improper benefit or profit in money, property or services
      or (b) active and deliberate dishonesty established by a final judgment
      and which is material to the cause of action. The Registrant&#146;s charter
      contains a provision which eliminates directors' and officers' liability
to the maximum extent permitted by Maryland law. </font></FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Maryland law requires
    a corporation (unless its charter provides otherwise, which the Registrant&#146;s
    charter does not) to indemnify a director or officer who has been successful
    in the defense of any proceeding to which he is made a party by reason of
    his service in that capacity. Maryland law permits a corporation to indemnify
    its present and former directors and officers, among others, against judgments,
    penalties, fines, settlements and reasonable expenses actually incurred by
    them in connection with any proceeding unless it is established that: </FONT></P>
<blockquote>
  <p><FONT size="2" face="serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the act or omission was material to the matter
            giving rise to the proceeding and (i) was committed in bad faith or (ii)
            was the result of active and deliberate dishonesty, <br>
        <br>
  </FONT></p>
  <p><FONT size="2" face="serif">&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the director or officer actually received
            an improper personal benefit in money, property or services or <br>
        <br>
  </FONT></p>
  <p><FONT size="2" face="serif">&nbsp;&#149;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;in the case of any criminal proceeding, the
            director or officer had reasonable cause to believe that the act or omission
            was unlawful. </FONT></p>
</blockquote>
<P> <FONT size="2" face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A court may order
    indemnification if it determines that the director or officer is fairly and
    reasonably entitled to indemnification, even though the prescribed standard
    of conduct is not met. However, indemnification for an adverse judgment in
    a suit by or in the right of the corporation, or for a judgment of liability
    on the basis that personal benefit was improperly received, is limited to
    expenses. </FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In addition, Maryland
    law permits a corporation to advance reasonable expenses to a director or
    officer upon receipt of (a) a written affirmation by the director or officer
    of his good faith belief that he has met the standard of conduct necessary
    for indemnification and (b) a written undertaking by him or on his behalf
    to repay the amount paid or reimbursed if it is ultimately determined that
    the standard of conduct was not met. </FONT></P>
<P> <FONT size="2" face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Registrant&#146;s
    charter obligates it, to the maximum extent permitted by Maryland law but
    subject to the exclusion required by Section 17(h) of the Investment Company
    Act of 1940, to indemnify (a) any present or former director or officer or
    (b) any director or officer who, at the Registrant&#146;s request, serves
    another enterprise as a director or officer. The Bylaws of the Registrant
    obligate it to provide advance of expenses to the fullest extent permitted
    by Maryland law, except as limited by the Investment Company Act of 1940.
    Additionally, the Registrant&#146;s Bylaws permit it to indemnify any other
    employees or agents of the Registrant to the extent authorized by the Registrant&#146;s
    Board of Directors.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Insofar as indemnification for liabilities arising under the Securities Act of 1933 (the &#147;1933 Act&#148;)
  may be permitted to directors, officers and controlling persons of the Registrant
  pursuant to the foregoing provisions, or otherwise, the Registrant has been advised
  that in the opinion of the Securities and Exchange Commission such indemnification
  is against public policy as expressed in the 1933 Act and is, therefore, unenforceable.
  In the event that a claim for indemnification against such liabilities (other
  than the payment by the Registrant of expenses incurred or paid by a director,
  officer or controlling person in connection with the securities being registered),
the </FONT></P>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P>
  <FONT size=2 face="serif">Registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public
policy as expressed in the 1933 Act and will be governed by the final adjudication of such issue. </FONT></P>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Registrant, its directors and officers, the Adviser and persons affiliated with them are insured under  policies of insurance maintained by the Registrant and the Adviser, within the limits
  and subject to the limitations of the policies, against certain expenses in connection with the defense of actions, suits or proceedings and certain liabilities that might be imposed as a result of such actions, suits or proceedings, to which they are
  parties by reason of being or having been such directors or officers. The policies expressly exclude coverage for any director or officer whose personal dishonesty, fraudulent breach of trust, lack of good faith, or intention to deceive or defraud
has been finally adjudicated or may be established or who willfully fails to act prudently. </FONT></P>

<P>
<U><FONT size=2 face="serif">Item 31</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Business and Other Connections of Investment Adviser</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Neither Duff &amp; Phelps Investment Management Co., nor any of its directors or executive officers, has at any time during the past two years been engaged in any other business, profession,
vocation or employment of a substantial nature either for its or his own account or in the capacity of director, officer, employee, partner or trustee, except as indicated in this Registration Statement. </FONT></P>
<P>
<U><FONT size=2 face="serif">Item 32</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Location of Accounts and Records</FONT></U><FONT size=2 face="serif"> </FONT></P>
<P></P>
<p> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">All
    accounts, books and other documents required to be maintained by Section
    31 (a) of the Investment Company Act of 1940 and the Rules promulgated thereunder
    are maintained at the offices of the Fund (55 East Monroe Street, Suite 3600,
    Chicago, Illinois 60603), the Adviser, the Administrator and the Fund&#146;s
    custodian and transfer agents. See &#147;Management of the Fund-Investment
    Adviser,&#148; &#147;Management of the Fund-Administrator&#148; and &#147;Underwriting-Custodian
    agent, transfer agent and auction agent&#148; for the addresses of the Adviser,
    the Administrator and the Fund&#146;s custodian and transfer agents. </font></p>
<p></p>
<P>
<U><FONT size=2 face="serif">Item 33</FONT></U><FONT size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Management Services</FONT></U></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> Not applicable.</FONT></P>
<P><U><FONT size=2 face="serif">Item 34</FONT></U><FONT
size=2 face="serif">. </FONT><U><FONT size=2 face="serif">Undertakings</FONT></U><FONT size=2 face="serif"> </FONT></P>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> 1. The Registrant hereby undertakes to suspend the offering of shares until it amends its Prospectus if (a) subsequent to the effective date of its registration statement, the net asset value declines more than 10
percent from its net asset value as of the effective date of the Registration Statement or (b) the net asset value increases to an amount greater than its net proceeds as stated in the Prospectus.</FONT></P>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">2.
Not applicable.  </FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">3. Not applicable.</FONT></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">4.
    Not applicable.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">5.
The Registrant hereby undertakes: </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a) for the purposes of determining any liability under the Securities Act of 1933, the information omitted from the form of Prospectus filed as part of a registration statement in reliance upon Rule 430A and contained in
the form of Prospectus filed by the Registrant under Rule 497(h) under the Securities Act of 1933 shall be deemed to be part of the Registration Statement as of the time it was declared effective; and </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b) for the purpose of determining any liability under
  the Securities Act of 1933, each post-effective amendment that contains a form
  of Prospectus shall be deemed to be a new registration  statement relating to
the </FONT></P>
<P align="center">
<FONT size=2 face="serif"> </FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P>
<FONT size=2 face="serif">securities offered therein, and the offering of the securities at that time shall be deemed to be the initial bona fide offering thereof.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">6. The Registrant undertakes to send by first class mail or other means designed to ensure equally prompt delivery within two business days of receipt of a written or oral request, its Statement of Additional Information.
</FONT></P>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>




<P align="center">
<B><FONT size=2 face="serif">SIGNATURES </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to requirements
  of the Securities Act of 1933 and the Investment Company Act of 1940, the Registrant
  has duly caused this registration statement to be signed on its behalf by the
  undersigned, thereunto duly authorized in the city of Chicago, and the state
of Illinois, on the 1st day
of May, 2006. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=50% align=left>&nbsp;</TD>
        <TD width=50% align=left>
  <FONT size=2 face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp;
        </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
        <TD>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
        <TD align=left nowrap>
  <FONT size=2 face="serif">By:</FONT> <font size="2"><u>&nbsp;&nbsp;/s/
  Nathan I. Partain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>&nbsp;</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;&nbsp;<FONT size=2 face="serif">Name: Nathan I. Partain </FONT>&nbsp;
        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp;  <FONT size=2 face="serif">Title: President and Chief Executive
   Officer </FONT>&nbsp;
        </TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Pursuant to the requirements of the Securities Act of 1933, registration statement has been signed by the following persons in the capacities and on the dates indicated. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
        <TD width=24% align=center nowrap>
  <B><U><FONT size=2 face="serif">Signature</FONT></U></B>&nbsp;
        </TD>
        <TD width=20%>&nbsp;
        </TD>
        <TD width=22% align=center>
  <B><U><FONT size=2 face="serif">Title</FONT></U></B>&nbsp;
        </TD>
        <TD width=13%>&nbsp;
        </TD>
        <TD width=21% align=right>
        <center>
          <B><U><FONT size=2 face="serif">Date</FONT></U></B>&nbsp;
          </center></TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>          <center>
          <p align="left"><font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Nathan I. Partain &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>
            </font></p>      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">President and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Chief Executive Officer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">(Principal Executive Officer)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>
         <font size="2"><u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ Joseph C. Curry, Jr.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Joseph C. Curry, Jr.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Senior Vice President</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">and Treasurer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">(Principal Financial and</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Accounting Officer)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap>
        <center>
          <FONT size=2 face="serif">*<br>
          ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap>
        <center>
          <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right nowrap> <p align=center><FONT size=2 face="serif">*<br>________________________________</FONT></p></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Francis E. Jeffries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">and Chairman of the Board</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5 nowrap>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp;
        </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left nowrap>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=center><FONT size=2 face="serif">and Vice Chairman of the Board</FONT></TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
        <TD width=22% align=right nowrap> <center>
          <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
        </center></TD>
        <TD width=21% align=right nowrap>&nbsp;</TD>
        <TD width=22% align=center>
  <FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
    <TD width=14% align=center>&nbsp;</TD>
    <TD width=21% align=center> <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=5>

          <center>
    </center></TD>
  </TR>
  <TR>
        <TD colspan=5>

          <center>
    </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=right>
          <center>
            <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
          </center></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>
  <FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center> <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>

          <center>
    </center></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=5>

          <center>
    </center></TD>
  </TR>
  <TR>
        <TD colspan=5>

          <center>
    </center></TD>
  </TR>
  <TR valign="bottom">
        <TD align=right> <center>
          <FONT size=2 face="serif">*<br>
    ________________________________</FONT>
        </center></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=center>
  <FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center> <FONT size=2 face="serif">May 1, 2006</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;</TD>
        <TD align=center>
  <FONT size=2 face="serif">Director</FONT>&nbsp;
        </TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
  </TR>
  <TR>
        <TD colspan=5>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5>&nbsp;

        </TD>
  </TR>
  <TR>
        <TD colspan=5>&nbsp;

        </TD>
  </TR>
  <TR valign="bottom">
        <TD align=left nowrap> <FONT size=2 face="serif">*By:</FONT>&nbsp;<font size="2"><u>/s/
        Nathan I. Partain&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u></font></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
        <TD align=center>
  <FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
        <TD align=center>
  <FONT size=2 face="serif">Attorney-in-Fact</FONT>&nbsp;
        </TD>
        <TD align=center>&nbsp;</TD>
        <TD align=left>&nbsp;

        </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<BR>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4><PAGE>

<P align="center">
<FONT size=2 face="serif">EXHIBIT INDEX </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
        <TD width="24%" align=left>&nbsp;

        </TD>
        <TD width="61%" align=left>&nbsp;

        </TD>
        <TD width="15%" align=right>
        <div align="left"><FONT size=2 face="serif">Sequential</FONT>&nbsp;
          </div></TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">Exhibit No.</FONT>&nbsp;
        </TD>
        <TD align=left>
  <U><FONT size=2 face="serif">Description</FONT></U>&nbsp;
        </TD>
        <TD align=right>
        <div align="left"><FONT size=2 face="serif">Page No.</FONT>&nbsp;
          </div></TD>
  </TR>

  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">d.11</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Form of Certificate of Auction
        Preferred Stock, Series T </font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">d.12</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Form of Certificate of Auction
        Preferred Stock, Series R </font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">k.10</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Form of Auction Agency Agreement</font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
        <TD align=left>
  <FONT size=2 face="serif">n</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Consent of Independent Registered Public Accounting Firm</FONT>&nbsp;
        </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">s</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Powers of Attorney </font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">&nbsp;</P>
<HR noshade  width="100%" size=4>




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5@OPV@8K*<'4E3I82^O<\/*M,#__9
`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.D.11
<SEQUENCE>3
<FILENAME>c42214_ex99-d11.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="right">
<FONT face="serif">Exhibit d.11 </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=center>
      <div align="left"><FONT face="serif">CERTIFICATE NUMBER</FONT>&nbsp;
	    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">NUMBER OF SHARES</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>      <div align="left"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT>&nbsp;
    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">4,000</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<center>
  <BR>
  <FONT face="serif">DNP SELECT INCOME FUND INC. </FONT><BR>
  <FONT face="serif">a Maryland corporation </FONT><BR>
  <FONT face="serif">Series T Auction Preferred Stock </FONT><BR>
  <FONT face="serif">&#36;.001 Par Value Per Share </FONT><BR>
  <FONT face="serif">&#36;25,000 Liquidation Preference Per Share </FONT>
</center>
<P align="right">
<FONT face="serif">CUSIP NO.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This certifies Cede &amp; Co. is the owner of 4,000 fully paid and non-assessable shares of Series T Auction Preferred Stock, par value &#36;.001 per share, &#36;25,000 liquidation preference per
share, of DNP Select Income Fund Inc. (the &#147;Fund&#148;) transferable only on the books of the Fund by the holder thereof in person or by duly authorized attorney upon surrender of this Certificate properly endorsed. This Certificate is not
valid unless countersigned by the transfer agent and registrar. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">IN WITNESS WHEREOF, the Fund
has caused this Certificate to be signed by its duly authorized officers this
_______ day of _______ 2006. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">THE BANK OF NEW YORK</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
      <div align="left"><FONT face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp;
	    </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">As Transfer Agent and Registrar</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left> <FONT face="serif">By:</FONT>&nbsp;_____________________________ </TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">By:</FONT>&nbsp;_____________________________
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <FONT face="serif">Authorized Signature</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Name:</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Title:</FONT>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=3>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left> <FONT face="serif">By:</FONT>&nbsp;_____________________________ </TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Name:</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Title:</FONT>&nbsp; </TD>
</TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P align="center">
<FONT face="serif">TRANSFER FORM </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FOR VALUE RECEIVED, ____________________________
hereby sells, assigns and transfers unto _______________ the shares of Series
T Auction Preferred Stock represented by this  Certificate, and does hereby irrevocably
constitute and appoint _______________________ attorney to transfer said shares
on the books of the within named Fund with full power of substitution in the
premises. </FONT></P>
<P>
<FONT face="serif">Dated: _____________________, _______<BR>
</FONT></P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In presence of: </FONT></P>
<P><font face="serif">_________________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_________________________________</font></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Shares of Series T Auction Preferred Stock evidenced by this Certificate may be sold, transferred or otherwise disposed of only pursuant to the provisions of the Fund&#146;s Articles Supplementary
Creating Series T and Series R of Auction Preferred Stock, a copy of which may be obtained at the office of the State Department of Assessments and Taxation of Maryland. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Fund will furnish information about the restrictions on transferability to any stockholder upon request and without charge. Any such request should be addressed to the Secretary of the Fund.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Fund will furnish to any stockholder on request and without charge a full statement of the designations, and any preferences, conversion or other rights, voting powers, restrictions, limitations
as to dividends, qualifications, and terms and conditions of redemption of the stock of each class authorized to be issued, the differences in the relative rights and preferences between shares of any series of any authorized preferred or special
class to the extent they have been set, and the authority of the Board of Directors to classify unissued shares and to set the relative rights and preference thereof and of any subsequent series of such preferred or special classes. Any such request
should be addressed to the Secretary of the Fund. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (&#147;DTC&#148;), to the Fund or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede &amp; Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede &amp; Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &amp; Co., has an interest herein. </FONT></P>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.D.12
<SEQUENCE>4
<FILENAME>c42214_ex99-d12.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="right">
<FONT face="serif">Exhibit d.12 </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=center>
      <div align="left"><FONT face="serif">CERTIFICATE NUMBER</FONT>&nbsp;
	    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">NUMBER OF SHARES</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=right>
      <div align="left"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1</FONT>&nbsp;
	    </div></TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">4,000</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<center>
  <BR>
  <FONT face="serif">DNP SELECT INCOME FUND INC. </FONT><BR>
  <FONT face="serif">a Maryland corporation </FONT><BR>
  <FONT face="serif">Series R Auction Preferred Stock </FONT><BR>
  <FONT face="serif">&#36;.001 Par Value Per Share </FONT><BR>
  <FONT face="serif">&#36;25,000 Liquidation Preference Per Share </FONT>
</center>
<P align="right">
<FONT face="serif">CUSIP NO.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This certifies Cede &amp; Co. is the owner of 4,000 fully paid and non-assessable shares of Series R Auction Preferred Stock, par value &#36;.001 per share, &#36;25,000 liquidation preference per
share, of DNP Select Income Fund Inc. (the &#147;Fund&#148;) transferable only on the books of the Fund by the holder thereof in person or by duly authorized attorney upon surrender of this Certificate properly endorsed. This Certificate is not
valid unless countersigned by the transfer agent and registrar. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">IN WITNESS WHEREOF, the Fund
has caused this Certificate to be signed by its duly authorized officers this
_______ day of _______ 2006. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">THE BANK OF NEW YORK</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">As Transfer Agent and Registrar</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT face="serif">By:</FONT>&nbsp;_____________________________ </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT face="serif">By:</FONT>&nbsp;_____________________________ </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <FONT face="serif">Authorized
        Signature</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Name:</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Title:</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT face="serif">By:</FONT>&nbsp;_____________________________ </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Name:</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">Title:</FONT>&nbsp; </TD>
  </TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P>
<PAGE>


<P align="center">
<FONT face="serif">TRANSFER FORM </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FOR VALUE RECEIVED, ____________________________
hereby sells, assigns and transfers unto _______________ the shares of Series
R Auction Preferred Stock represented by this  Certificate, and does hereby irrevocably
constitute and appoint _______________________ attorney to transfer said shares
on the books of the within named Fund with full power of substitution in the
premises. </FONT></P>
<P>
<FONT face="serif">Dated: _____________________, _______<BR>
</FONT></P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In presence of: </FONT></P>
<P><font face="serif">_______________________________&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;_______________________________&nbsp;</font></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Shares of Series R Auction Preferred Stock evidenced by this Certificate may be sold, transferred or otherwise disposed of only pursuant to the provisions of the Fund&#146;s Articles Supplementary
Creating Series T and Series R of Auction Preferred Stock, a copy of which may be obtained at the office of the State Department of Assessments and Taxation of Maryland. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Fund will furnish information about the restrictions on transferability to any stockholder upon request and without charge. Any such request should be addressed to the Secretary of the Fund.
</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Fund will furnish to any stockholder on request and without charge a full statement of the designations, and any preferences, conversion or other rights, voting powers, restrictions, limitations
as to dividends, qualifications, and terms and conditions of redemption of the stock of each class authorized to be issued, the differences in the relative rights and preferences between shares of any series of any authorized preferred or special
class to the extent they have been set, and the authority of the Board of Directors to classify unissued shares and to set the relative rights and preference thereof and of any subsequent series of such preferred or special classes. Any such request
should be addressed to the Secretary of the Fund. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Unless this certificate is presented by an authorized representative of The Depository Trust Company, a New York corporation (&#147;DTC&#148;), to the Fund or its agent for registration of transfer,
exchange, or payment, and any certificate issued is registered in the name of Cede &amp; Co. or in such other name as is requested by an authorized representative of DTC (and any payment is made to Cede &amp; Co. or to such other entity as is
requested by an authorized representative of DTC), ANY TRANSFER, PLEDGE, OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL inasmuch as the registered owner hereof, Cede &amp; Co., has an interest herein. </FONT></P>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.K.10
<SEQUENCE>5
<FILENAME>c42214_ex99k10.txt
<TEXT>
                                                               Exhibit 99.2K10




                           DNP SELECT INCOME FUND INC.


                          ----------------------------

                            AUCTION AGENCY AGREEMENT

                           dated as of [      ], 2006

                                   Relating to

                             Auction Preferred Stock

                                       of

                           DNP SELECT INCOME FUND INC.

                          ----------------------------



                              THE BANK OF NEW YORK
                                as Auction Agent


<PAGE>

         This Auction Agency  Agreement  (this  "Agreement"),  dated as of [
  ], 2006,  is between DNP Select  Income Fund Inc. (the "Fund") and The Bank of
New York, a New York banking corporation.

         The Fund proposes to issue three series of shares of auction  preferred
stock, par value $.001 per share,  designated  Series M Auction Preferred Stock,
liquidation  preference  $25,000 per share,  Series W Auction  Preferred  Stock,
liquidation  preference $25,000 per share, and Series F Auction Preferred Stock,
liquidation  preference  $25,000 per share,  and may in the future  issue one or
more additional  series of Auction  Preferred Stock  (collectively,  the "APS"),
pursuant to Articles Supplementary (as defined below).

         The Fund desires that The Bank of New York  perform  certain  duties as
agent in  connection  with  each  Auction  (as  defined  below)  of APS (in such
capacity, the "Auction Agent"), and as the transfer agent,  registrar,  dividend
paying agent and redemption agent with respect to the APS (in such capacity, the
"Paying Agent"),  upon the terms and conditions of this Agreement,  and the Fund
hereby  appoints The Bank of New York as said Auction  Agent and Paying Agent in
accordance with those terms and conditions (hereinafter generally referred to as
the "Auction Agent," except in Sections III and IV below).

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants contained herein, the Fund and the Auction Agent agree as follows:

I.       DEFINITIONS AND RULES OF CONSTRUCTION.

         1.1 TERMS DEFINED BY REFERENCE TO THE ARTICLES SUPPLEMENTARY.

         Capitalized terms not defined herein shall have the respective meanings
specified in the Articles Supplementary.

         1.2 CERTAIN DEFINED TERMS.

         As used herein, the following terms shall have the following  meanings,
unless the context otherwise requires:

                  (a)  "Agent  Member" of any  Person  shall mean such  Person's
agent member or a  participant  in the  Securities  Depository  that will act on
behalf of a Bidder.

                  (b)   "Articles   Supplementary"   shall  mean  any   articles
supplementary  filed by the Fund with the State  Department of  Assessments  and
Taxation of Maryland,  specifying the powers,  preferences  and rights of one or
more series of APS.

                  (c) "Auction" shall have the meaning  specified in Section 2.1
hereof.

                  (d)  "Auction  Procedures"  shall mean the Auction  Procedures
that are set forth in Part II of the Articles Supplementary.

                  (e)  "Authorized  Officer"  shall  mean each  Vice  President,
Assistant Vice  President and Assistant  Treasurer of the Auction Agent assigned
to the Dealing and Trading Group of its Corporate Trust Division and every other
officer or employee of the Auction Agent  designated as an "Authorized  Officer"
for purposes  hereof in a written  communication  from the Auction  Agent to the
Fund.

                  (f)  "Broker-Dealer   Agreement"  shall  mean  each  agreement
between the Auction Agent and a broker-dealer substantially in the form attached
hereto as EXHIBIT A.

<PAGE>

                  (g)  "Closing"  shall mean the date the Fund  consummates  the
transactions for the issuance and sale of the APS.

                  (h) "Existing  Holder" shall mean, with respect to the Auction
Agent, such Person who is a Broker-Dealer,  and with respect to a Broker-Dealer,
such Person who is a Beneficial Owner of shares of APS.

                  (i) "Fund  Officer"  shall mean the Chairman,  the  President,
each Vice  President  (whether  or not  designated  by a number or word or words
added before or after the title "Vice President"), the Secretary, the Treasurer,
each  Assistant  Secretary  and each  Assistant  Treasurer of the Fund and every
other  officer  or  employee  of the Fund  designated  as a "Fund  Officer"  for
purposes hereof in a written notice from the Fund to the Auction Agent.

                  (j)  "Holder"  shall be a holder of record of one or more APS,
listed as such in the share register  maintained by the Paying Agent pursuant to
Section 4.6 hereof.

                  (k) "Interest  Equivalent" means a yield on a 360-day basis of
a  discount  basis  security  which  is  equal  to the  yield  on an  equivalent
interest-bearing security.

         1.3 RULES OF CONSTRUCTION.

         Unless the context or use  indicates  another or  different  meaning or
intent, the following rules shall apply to the construction of this Agreement:

                  (a) Words  importing  the singular  number  shall  include the
plural number and vice versa.

                  (b)  The  captions   and   headings   herein  are  solely  for
convenience  of reference and shall not  constitute a part of this Agreement nor
shall they affect its meaning, construction or effect.

                  (c) The words "hereof," "herein," "hereto," and other words of
similar import refer to this Agreement as a whole.

                  (d) All references herein to a particular time of day shall be
to New York City time.

II.      THE AUCTION.

         2.1 PURPOSE; INCORPORATION BY REFERENCE OF AUCTION PROCEDURES.

                  (a) The Articles  Supplementary  provides that the  Applicable
Dividend Rate on the APS for each  Dividend  Period  therefor  after the initial
Dividend  Period  shall be the rate per  annum  that a  commercial  bank,  trust
company or other  financial  institution  appointed by the Fund advises  results
from the implementation of the Auction Procedures. The Board of Directors of the
Fund has adopted a resolution  appointing  The Bank of New York as Auction Agent
for purposes of the Auction  Procedures.  The Auction Agent hereby  accepts such
appointment  and  agrees  that,  on each  Auction  Date,  it  shall  follow  the
procedures  set forth in this  Section  II and the  Auction  Procedures  for the
purpose of  determining  the  Applicable  Dividend Rate for the APS for the next
Dividend  Period.  Each periodic  operation of such  procedures  is  hereinafter
referred to as an "Auction."

                  (b) All of the provisions  contained in the Auction Procedures
are incorporated herein by reference in their entirety and shall be deemed to be
a part  hereof to the same  extent as if such  provisions  were set forth  fully
herein.  In the event of any  conflict  between the Auction  Procedures  and the
terms hereof, the Auction Procedures shall govern and control.

                                       2
<PAGE>

         2.2 PREPARATION  FOR EACH AUCTION;  MAINTENANCE OF REGISTRY OF EXISTING
HOLDERS.

                  (a) As of the date hereof,  the Fund shall provide the Auction
Agent with a list of the Broker-Dealers previously approved by the Fund pursuant
to Section  2.5(d)  hereof and shall cause to be delivered to the Auction  Agent
for execution by the Auction Agent a Broker-Dealer Agreement signed by each such
Broker-Dealer. The Auction Agent shall keep such list current and accurate based
solely upon information  provided to it by the Fund and shall indicate  thereon,
or on a separate list, the identity of each Existing Holder,  if any, whose most
recent Order was submitted by a Broker-Dealer  on such list and resulted in such
Existing Holder continuing to hold or purchase APS. Not later than five Business
Days  prior  to  any  Auction  Date  for  which  any  change  in  such  list  of
Broker-Dealers  is to be  effective,  the Fund shall notify the Auction Agent in
writing  of  such  change  and,  if  any  such  change  is  the  addition  of  a
Broker-Dealer  to such list, the Fund shall cause to be delivered to the Auction
Agent for execution by the Auction  Agent a  Broker-Dealer  Agreement  signed by
such  Broker-Dealer.  The Auction Agent shall have entered into a  Broker-Dealer
Agreement  with  each  Broker-Dealer  prior  to the  participation  of any  such
Broker-Dealer in any Auction.

                  (b) The  provisions  contained  in  Section 3 of Part I of the
Articles Supplementary  concerning Special Dividend Periods and the notification
of a Special  Dividend  Period  will be  followed by the Fund and, to the extent
applicable,  the  Auction  Agent,  and  the  provisions  contained  therein  are
incorporated  herein by reference in their  entirety and shall be deemed to be a
part of this Agreement to the same extent as if such  provisions  were set forth
fully herein.

                  (c) The Applicable Percentage and the Applicable Spread on the
date of this Agreement are those rates as determined by the Fund and provided to
the  Auction  Agent on the date  hereof.  If there is any  change in the  credit
rating of APS by the rating agency (or substitute or successor  rating agencies)
referred to in the definition of "Applicable Percentage" and "Applicable Spread"
resulting in any change in the  Applicable  Percentage or Applicable  Spread for
APS after the date given  herewith,  the Fund shall notify the Auction  Agent in
writing of such change in the Applicable  Percentage or Applicable  Spread prior
to 12:00 Noon on the  Business Day prior to the next Auction Date for any series
of APS succeeding such change.  In determining the Maximum Dividend Rate for any
series of APS on any Auction Date as set forth in 2.2(d)(i) hereof,  the Auction
Agent shall be entitled to rely on the last Applicable Percentage and Applicable
Spread for APS of which it has most recently  received notice from the Fund (or,
in the absence of such notice,  the percentage or spread determined by reference
to the definition of Applicable Percentage and Applicable Spread, respectively).

                  (d)  (i)  On  each  Auction  Date,  the  Auction  Agent  shall
determine the  Applicable  Dividend Rate and the Maximum  Dividend  Rate. If any
U.S. Treasury Note Rate is not quoted on an interest or bond equivalent,  as the
case may be,  basis,  the  Auction  Agent  shall  convert the quoted rate to the
interest or bond equivalent  thereof as set forth in the definition of such rate
in the  Articles  Supplementary  if the rate  obtained by the  Auction  Agent is
quoted on a discount  basis,  or if such rate is quoted on a basis other than an
interest or bond  equivalent  or discount  basis the Auction Agent shall convert
the quoted rate to an interest or bond equivalent rate after  consultation  with
the Fund as to the method of such conversion.

                           (ii)  If  any  LIBOR  Rate  is  to be  determined  by
reference to Moneyline's  Telerate Page 3750 or by rate  quotations  provided by
LIBOR  Dealer(s),  as the case may be,  and  Moneyline's  Telerate  Page 3750 is
unavailable or the LIBOR Dealer(s) fail to provide rate quotations,  as the case
may be (as  described in the  Articles  Supplementary),  then the Auction  Agent
shall  immediately  notify  the Fund so that the Fund can  determine  whether to
select a Substitute LIBOR Dealer(s) to provide such rate  quotation(s) not being
supplied.

                                       3
<PAGE>

                           (iii) If any U.S.  Treasury  Note Rate is to be based
on rates supplied by U.S.  Government  Securities Dealers and one or more of the
U.S.  Government  Securities  Dealers  shall  not  provide a  quotation  for the
determination  of  such  U.S.  Treasury  Note  Rate,  the  Auction  Agent  shall
immediately  notify the Fund so that the Fund can determine  whether to select a
Substitute  U.S.  Government  Securities  Dealer or Substitute  U.S.  Government
Securities  Dealers to provide the quotation or quotations not being supplied by
any U.S. Government Securities Dealer or U.S. Government Securities Dealers. The
Fund shall promptly advise the Auction Agent of any such selection.

                  (e) (i) The Auction Agent shall maintain a current registry of
the Existing Holders of the APS (the "Registry") based upon information provided
to it by Broker-Dealers for purposes of each individual Auction.  The Fund shall
use  commercially  reasonable  efforts to provide or cause to be provided to the
Auction Agent within ten Business Days  following the date of the Closing a list
of the  initial  Existing  Holders of APS,  and the  Broker-Dealer  of each such
Existing  Holder through which such Existing Holder  purchased such shares.  The
Auction Agent may  conclusively  rely upon, as evidence of the identities of the
Existing  Holders,  such list,  the results of each Auction and notices from any
Existing Holder, the Agent Member of any Existing Holder or the Broker-Dealer of
any Existing Holder with respect to such Existing  Holder's  transfer of any APS
to another Person.

                           (ii) In the event of any partial  redemption  of APS,
the Fund shall promptly request the Securities  Depository to notify the Auction
Agent in writing of the  identities  of the Agent  Members  (and the  respective
numbers  of shares)  from the  accounts  of which  shares  have been  called for
redemption  and the  person  or  department  at such  Agent  Member  to  contact
regarding  such  redemption.  At least two  Business  Days prior to the  Auction
preceding  the date of  redemption,  the Auction  Agent shall request each Agent
Member so identified  to disclose to the Auction  Agent (upon  selection by such
Agent Member of the Existing Holders whose shares are to be redeemed) the number
of APS of each  such  Existing  Holder,  if any,  to be  redeemed  by the  Fund,
provided that the Auction Agent has been  furnished  with the name and telephone
number  of a person or  department  at such  Agent  Member  from  which it is to
request such information.  In the absence of receiving any such information with
respect to an Existing  Holder,  from such  Existing  Holder's  Agent  Member or
otherwise,  the  Auction  Agent may  continue to treat such  Existing  Holder as
having ownership of the number of APS shown in the Registry.

                           (iii) The Auction Agent shall  register a transfer of
the ownership of APS from an Existing Holder to another Existing  Holder,  or to
another  Person if  permitted  by the Fund,  only if (A) such  transfer  is made
pursuant to an Auction or (B) if such transfer is made other than pursuant to an
Auction,  the Auction Agent has been notified of such transfer in writing,  in a
notice substantially in the form of EXHIBIT B to the Broker-Dealer Agreement, by
such Existing Holder or by the Agent Member of such Existing Holder. The Auction
Agent is not required to accept any notice of transfer  delivered for an Auction
unless it is received by the Auction Agent by 3:00 p.m. on the Business Day next
preceding the Auction  Date.  The Auction Agent shall rescind a transfer made on
the Registry of any APS if the Auction Agent has been notified in writing,  in a
notice substantially in the form of EXHIBIT C to the Broker-Dealer Agreement, by
the Agent Member or the  Broker-Dealer  of any Person that (i) purchased any APS
and the  seller  failed  to  deliver  such  shares  or (ii) sold any APS and the
purchaser  failed to make payment to such Person upon  delivery to the purchaser
of such shares.

                  (f) The  Auction  Agent may,  but shall not be  obligated  to,
request  that  the  Broker  Dealers,  as set  forth  in  Section  3.2(b)  of the
Broker-Dealer  Agreements,  provide  the  Auction  Agent  with a list  of  their
respective  customers that such Broker-Dealers  believe are Beneficial Owners of
APS. The Auction Agent shall keep  confidential  any such  information and shall
not  disclose  any such  information  so provided  to any Person  other than the
relevant  Broker-Dealer and the Fund; provided,  however, that the Auction Agent
reserves the right and is authorized to disclose any such  information if (a) it
is ordered to do so by a court of competent  jurisdiction or a regulatory  body,
judicial or  quasi-judicial  agency or

                                       4
<PAGE>

authority having the authority to compel such  disclosure,  (b) it is advised by
its counsel  that its failure to do so would be unlawful or (c) failure to do so
would expose the Auction Agent to loss, liability,  claim, damage or expense for
which it has not received indemnity or security satisfactory to it.

         2.3 AUCTION SCHEDULE.

         The Auction Agent shall  normally  conduct  Auctions every 7 days after
the first Auction in accordance with the schedule set forth below. Such schedule
may be changed by the Auction Agent with the consent of the Fund,  which consent
shall not be withheld  unreasonably.  The Auction Agent shall give notice of any
such change to each  Broker-Dealer.  Such notice shall be received  prior to the
first Auction Date on which any such change shall be effective.

TIME                                            EVENT

By 9:30 a.m.                     Auction  Agent  shall  advise  the Fund and the
                                 Broker-Dealers  of Maximum Dividend Rate as set
                                 forth in Section 2.2(d)(i) hereof.

9:30 a.m. - 1:00 p.m.            Auction   Agent  shall   assemble   information
                                 communicated   to  it  by   Broker-Dealers   as
                                 provided  in  Section  2(a)  of  Part II of the
                                 Articles Supplementary.

Not earlier  than  1:00p.m.      Auction   Agent   shall   make   determinations
                                 pursuant  to  Section  3(a)  of  Part II of the
                                 Articles Supplementary.

By approximately  3:30 p.m.      Auction  Agent  shall  advise  the  Fund of the
                                 results of the  Auction as  provided in Section
                                 3(b) of Part II of the Articles Supplementary.

                                 Submitted  Bids and Submitted  Sell Orders will
                                 be  accepted  and  rejected in whole or in part
                                 and  APS  will  be  allocated  as  provided  in
                                 Section   4  of   Part   II  of  the   Articles
                                 Supplementary.  Auction Agent shall give notice
                                 of the Auction  results as set forth in Section
                                 2.4 hereof.

         Except  as  provided  in  the  immediately  following  paragraph,   the
Submission Deadline will be 1:00 p.m.; provided, however, that the Auction Agent
shall be  entitled  to  accept  Orders  from  any  Broker-Dealer  following  the
Submission  Deadline  (but in any event  prior to the  communication  of Auction
results as  provided  below) so long as the Orders from such  Broker-Dealer  are
accompanied by a certification  to the Auction Agent from such  Broker-Dealer to
the effect that (i) such Orders were  communicated to, and time-stamped by, such
Broker-Dealer  prior to the  Submission  Deadline and (ii) a force majeure event
(including,  without limitation, a technological failure or malfunction) impeded
the  Broker-Dealer's  ability  to  submit  the  Orders  prior to the  Submission
Deadline.

         The  Auction  Agent will follow the Bond  Market  Association's  Market
Practice U.S. Holiday  Recommendations  for shortened  trading days for the bond
markets  (the "BMA  Recommendation")  unless  the  Auction  Agent is  instructed
otherwise.  In  the  event  of a BMA  Recommendation  on an  Auction  Date,  the
Submission Deadline will be 11:30 a.m., instead of 1:00 p.m.

         2.4 NOTICE OF AUCTION RESULTS.

         On each Auction Date, the Auction Agent shall notify  Broker-Dealers of
the results of the Auction held on such date by  telephone  or other  electronic
means acceptable to the parties.

                                       5
<PAGE>

         2.5 BROKER-DEALERS.

                  (a) Not later than 12:00 noon on each Auction  Date,  the Fund
shall pay to the Auction  Agent in Federal  Funds or similar  same-day  funds an
amount  in  cash  equal  to (i) in the  case  of any  Auction  Date  immediately
preceding  a seven day  Dividend  Period,  the  product  of (A) a  fraction  the
numerator of which is the number of days in such Dividend Period  (calculated by
counting  the first  day of such  Dividend  Period  but  excluding  the last day
thereof)  and the  denominator  of which is 360,  times (B) 1/4 of 1%, times (C)
$25,000 times (D) the sum of the aggregate  number of outstanding  APS for which
the Auction is conducted  and (ii) in the case of any Special  Dividend  Period,
the  amount  determined  by mutual  consent  of the Fund and the  Broker-Dealers
pursuant to Section 3.5 of the Broker-Dealer Agreements. The Auction Agent shall
apply such  moneys as set forth in Section 3.5 of the  Broker-Dealer  Agreements
and shall  thereafter  remit to the Fund any remaining funds paid to the Auction
Agent pursuant to this Section 2.5(a).

                  (b) The  Fund  shall  not  designate  any  Person  to act as a
Broker-Dealer,  or permit an Existing Holder or a Potential  Beneficial Owner to
participate in Auctions through any Person other than a  Broker-Dealer,  without
the prior written  approval of the Auction  Agent,  which  approval shall not be
withheld unreasonably.

                  (c)  The  Auction  Agent  shall  terminate  any  Broker-Dealer
Agreement as set forth therein if so directed in writing by the Fund.

                  (d) Subject to Section 2.5(b)  hereof,  the Auction Agent from
time to time shall enter into such  Broker-Dealer  Agreements  as the Fund (with
the consent of [                ], which shall not be  unreasonably  withheld or
delayed) shall request in writing.

                  (e) The Auction Agent shall maintain a list of Broker-Dealers.

         2.6  OWNERSHIP  OF APS  AND  SUBMISSION  OF BIDS  BY THE  FUND  AND ITS
AFFILIATES.

         Neither  the Fund nor any  Affiliate  of the Fund may  submit  any Sell
Order or Bid, directly or indirectly,  in any Auction,  except that an Affiliate
of the Fund that is a Broker-Dealer  may submit a Sell Order or Bid on behalf of
a Beneficial  Owner or a Potential  Beneficial  Owner. The Fund shall notify the
Auction  Agent in writing  if the Fund or, to the best of the Fund's  knowledge,
any  Affiliate  of the Fund  becomes  a  Beneficial  Owner  of any APS.  Any APS
redeemed, purchased or otherwise acquired (i) by the Fund shall not be reissued,
except in accordance  with the  requirements  of the  Securities Act of 1933, as
amended  ("Securities  Act") or (ii) by its Affiliates  shall not be transferred
(other than to the Fund). The Auction Agent shall have no duty or liability with
respect to enforcement of this Section 2.6.

         2.7 ACCESS TO AND MAINTENANCE OF AUCTION RECORDS.

         The Auction  Agent shall  afford to the Fund,  its agents,  independent
public  accountants  and  counsel,  access at  reasonable  times  during  normal
business  hours to review and make  extracts  or copies (at the Fund's sole cost
and expense) of all books, records,  documents and other information  concerning
the conduct and results of Auctions, provided that any such agent, accountant or
counsel shall  furnish the Auction Agent with a letter from the Fund  requesting
that the Auction Agent afford such person access at least one Business Day prior
to the date of such access. The Auction Agent shall maintain records relating to
any  Auction  for a period of at least  two years  after  such  Auction  (unless
requested in writing by the Fund to maintain such records for such longer period
not in excess of four years, then for such longer period),  and such records, in
reasonable detail,  shall accurately and fairly reflect the actions taken by the
Auction Agent  hereunder.  The Fund agrees to keep  confidential any information
regarding the customers of any Broker-Dealer  received from the Auction Agent in
connection  with this  Agreement  or

                                       6
<PAGE>

any Auction, and shall not disclose such information or permit the disclosure of
such   information   without  the  prior  written   consent  of  the  applicable
Broker-Dealer  to anyone  except such agent,  accountant  or counsel  engaged to
audit or review the results of Auctions as  permitted  by this  Section 2.7. The
Fund reserves the right to disclose any such information if it is advised by its
counsel  that its  failure to do so would (i) be  unlawful  or (ii) expose it to
liability,   unless  the  Broker-Dealer   shall  have  offered   indemnification
satisfactory to the Fund. Any such agent,  accountant or counsel,  before having
access to such  information,  shall agree to keep such information  confidential
and not to disclose such  information or permit  disclosure of such  information
without the prior written consent of the applicable Broker-Dealer, provided that
such agent,  accountant  or counsel  may reserve the right to disclose  any such
information  if it is advised by its counsel that its failure to do so would (i)
be unlawful or (ii) expose it to liability,  unless the Broker-Dealer shall have
offered  indemnification  satisfactory to such agent, accountant or counsel. The
Auction Agent shall have no  responsibility  for, and shall have no liability in
connection with, the Fund's performance of its duties under this Section 2.7.

III. THE AUCTION AGENT AS PAYING AGENT.

         3.1 THE PAYING AGENT.

         The Board of Directors of the Fund has adopted a resolution  appointing
The Bank of New York as Auction Agent and Paying Agent.  The Paying Agent hereby
accepts  such  appointment  and agrees to act in  accordance  with its  standard
procedures and the provisions of the Articles  Supplementary which are specified
herein with respect to the APS and as set forth in this Section III.

         3.2 THE FUND'S NOTICES TO THE PAYING AGENT.

         Whenever any APS are to be redeemed, the Fund promptly shall deliver to
the  Paying  Agent a Notice of  Redemption,  which  will be mailed by the Paying
Agent to each Holder at least five  Business  Days prior to the date such Notice
of Redemption is required to be mailed  pursuant to the Articles  Supplementary.
The Paying Agent shall have no  responsibility to confirm or verify the accuracy
of any such Notice.

         3.3 THE FUND TO PROVIDE FUNDS FOR DIVIDENDS AND REDEMPTIONS.

                  (a) Not later than 12:00 noon on each  Dividend  Payment Date,
the Fund shall  deposit  with the Paying  Agent an  aggregate  amount of Federal
Funds or similar  same-day  funds equal to the declared  dividends to be paid to
Holders  on such  Dividend  Payment  Date,  and  shall  give  the  Paying  Agent
irrevocable  written  instructions  to apply such  funds to the  payment of such
dividends on such Dividend Payment Date.

                  (b) If the Fund  shall  give a Notice of  Redemption,  then by
noon of the date fixed for redemption,  the Fund shall deposit in trust with the
Paying  Agent an aggregate  amount of Federal  Funds or similar  same-day  funds
sufficient  to redeem such APS called for  redemption  and shall give the Paying
Agent irrevocable written instructions and authority to pay the redemption price
to the Holders of APS called for redemption upon surrender of the certificate or
certificates therefor.

         3.4 DISBURSING DIVIDENDS AND REDEMPTION PRICE.

         After  receipt  of the  Federal  Funds or  similar  same-day  funds and
instructions  from the Fund  described  in Section 3.3 above,  the Paying  Agent
shall pay to the  Holders  (or  former  Holders)  entitled  thereto  (i) on each
Dividend  Payment  Date,  dividends  on the APS,  and (ii) on any date fixed for
redemption, the redemption price of any shares of APS called for redemption. The
amount of dividends  for any  Dividend  Period to be paid by the Paying Agent to
Holders  will be  determined  by the Fund as set

                                       7
<PAGE>

forth in Section 2 of Part I of the Articles Supplementary. The redemption price
to be paid by the  Paying  Agent to the  Holders of any shares of APS called for
redemption  will  be  determined  as set  forth  in  Section  8 of Part I of the
Articles  Supplementary.  The Paying Agent shall have no duty to  determine  the
redemption  price and may rely on the amount  thereof set forth in the Notice of
Redemption.

IV.      THE PAYING AGENT AS TRANSFER AGENT AND REGISTRAR.

         4.1 ORIGINAL ISSUE OF SHARE CERTIFICATES.

         On the Date of  Original  Issue of the APS,  one  certificate  for each
series of APS shall be issued by the Fund and  registered  in the name of Cede &
Co., as nominee of the Securities  Depository,  and  countersigned by the Paying
Agent.

         4.2 REGISTRATION OF TRANSFER OR EXCHANGE OF SHARES.

         Except as provided in this  Section  4.2,  the APS shall be  registered
solely  in the  name  of  the  Securities  Depository  or  its  nominee.  If the
Securities  Depository shall give notice of its intention to resign as such, and
if  the  Fund  shall  not  have  selected  a  substitute  Securities  Depository
acceptable  to the  Paying  Agent  prior to such  resignation,  then  upon  such
resignation  the APS, at the Fund's  request,  may be registered for transfer or
exchange,  and a new  certificate  thereupon  shall be issued in the name of the
designated  transferee or transferees,  upon surrender of the old certificate in
form deemed by the Paying Agent to be properly  endorsed  for transfer  with (a)
all necessary  endorsers'  signatures  guaranteed in such manner and form and by
such guarantor as the Paying Agent may reasonably  require,  (b) such assurances
as the  Paying  Agent  shall deem  necessary  or  appropriate  to  evidence  the
genuineness and effectiveness of each necessary endorsement and (c) satisfactory
evidence of compliance  with all  applicable  laws relating to the collection of
taxes in  connection  with any  registration  of  transfer  or exchange or funds
necessary for the payment of such taxes.  If the  certificate for the APS is not
held by the  Securities  Depository  or its nominee,  payments  upon transfer of
shares in an Auction shall be made in Federal Funds or similar same-day funds to
the Auction Agent against delivery of certificates therefor.

         4.3 REMOVAL OF LEGEND.

         Any  request  for  removal  of a legend  indicating  a  restriction  on
transfer from a certificate evidencing APS shall be accompanied by an opinion of
counsel  stating  that  such  legend  may be  removed  and  such  shares  may be
transferred free of the restriction described in such legend, said opinion to be
delivered  under cover of a letter from a Fund  Officer  authorizing  the Paying
Agent to remove the legend on the basis of said opinion.

         4.4 LOST, STOLEN OR DESTROYED SHARES CERTIFICATES.

         The Paying Agent shall issue and register a replacement certificate for
a  certificate  represented  to have been lost,  stolen or  destroyed,  upon the
fulfillment of such requirements as shall be deemed  appropriate by the Fund and
by the Paying  Agent,  subject at all times to  provisions  of law, the Articles
Supplementary  governing such matters and  resolutions  adopted by the Fund with
respect to lost,  stolen or destroyed  securities.  The Paying Agent may issue a
new  certificate  in  exchange  for and upon  the  cancellation  of a  mutilated
certificate.  Any request by the Fund to the Paying Agent to issue a replacement
or new  certificate  pursuant  to this  Section  4.4  shall  be  deemed  to be a
representation  and warranty by the Fund to the Paying Agent that such  issuance
will comply with provisions of applicable law and the Articles Supplementary and
resolutions of the Fund.

                                       8
<PAGE>

         4.5 DISPOSITION OF CANCELED CERTIFICATES: RECORD RETENTION.

         The  Paying  Agent  shall  retain  stock  certificates  which have been
canceled in transfer or in exchange and accompanying documentation in accordance
with applicable rules and regulations of the Securities and Exchange  Commission
(the  "Commission")  for at  least  two  calendar  years  from  the date of such
cancellation.  The Paying Agent,  upon written request by the Fund, shall afford
to the Fund,  its agents and counsel  access at  reasonable  times during normal
business  hours to review and make  extracts  or copies (at the Fund's sole cost
and expense) of such certificates and accompanying  documentation.  Upon written
request  by the  Fund  at any  time  within  the  six  month  period  commencing
immediately after the expiration of this two-year period, the Paying Agent shall
deliver to the Fund the canceled  certificates and  accompanying  documentation.
The Fund,  at its expense,  shall  retain such records for a minimum  additional
period of at least four calendar  years from the date of delivery of the records
to the Fund and shall make such  records  available  during  this  period at any
time,  or from  time  to  time,  for  reasonable  periodic,  special,  or  other
examinations by representatives of the Commission. The Fund also shall undertake
to furnish to the Commission,  upon demand, either at its principal office or at
any regional  office,  complete,  correct and current hard copies of any and all
such records.

         4.6 STOCK REGISTER.

         The Paying Agent shall maintain the stock register, which shall contain
a list of the Holders,  the number of shares held by each Holder and the address
of each Holder.  The Paying Agent shall record in the stock  register any change
of  address  of a Holder  upon  written  notice by such  Holder.  In case of any
written  request or demand for the inspection of the share register or any other
books of the Fund in the  possession of the Paying Agent,  the Paying Agent will
notify  the Fund and secure  instructions  as to  permitting  or  refusing  such
inspection.  The Paying Agent reserves the right,  however, to exhibit the stock
register  or other  records to any  person in case it is advised by its  counsel
that its failure to do so would (i) be unlawful or (ii) expose it to  liability,
unless the Fund shall have offered  indemnification  satisfactory  to the Paying
Agent.

         4.7 RETURN OF FUNDS.

         Any funds  deposited  with the Paying  Agent by the Fund for any reason
(other  than for the  payment of amounts  due to the  Paying  Agent)  under this
Agreement, including for the payment of dividends or the redemption of APS, that
remain with the Paying  Agent  after 12 months  shall be repaid to the Fund upon
written request by the Fund.

V.       REPRESENTATIONS AND WARRANTIES.

         5.1 REPRESENTATIONS AND WARRANTIES OF THE FUND.

         The Fund represents and warrants to the Auction Agent that:

                           (i)  the  Fund  is  duly  organized  and  is  validly
existing as a corporation under the laws of the State of Maryland,  and has full
power to execute and deliver this  Agreement and to authorize,  create and issue
the APS;

                           (ii)  the  Fund is  registered  with  the  Commission
under the 1940 Act as a closed-end, diversified, management investment company;

                           (iii)  this  Agreement  has  been  duly  and  validly
authorized,  executed and delivered by the Fund and constitutes the legal, valid
and binding obligation of the Fund,  enforceable  against the Fund in accordance
with its terms, subject to bankruptcy, insolvency, reorganization and other laws
of general  applicability  relating  to or  affecting  creditors'  rights and to
general equitable principles;

                                       9
<PAGE>

                           (iv) the form of the certificate  evidencing  the APS
complies with all applicable laws of the State of Maryland;

                           (v) the APS have  been  duly  and  validly authorized
by the Fund and,  upon  completion of the initial sale of the APS and receipt of
payment  therefor,   will  be  validly  issued  by  the  Fund,  fully  paid  and
nonassessable;

                           (vi) at the  time  of the  offering  of the  APS, the
shares offered will be registered under the Securities Act and no further action
by or before any  governmental  body or authority of the United States or of any
state thereof is required in connection  with the execution and delivery of this
Agreement or will be required in  connection  with the issuance of shares of the
APS, except such action as required by applicable state securities laws;

                           (vii) the execution and delivery  of  this  Agreement
and the  issuance  and  delivery of the APS do not and will not  conflict  with,
violate,  or result in a breach of the terms,  conditions or  provisions  of, or
constitute a default  under,  the  Charter,  any order or decree of any court or
public authority having jurisdiction over the Fund, or any mortgage,  indenture,
contract,  agreement or  undertaking to which the Fund is a party or by which it
is bound; and

                           (viii)  no taxes are payable  upon or in  respect  of
the  execution  of this  Agreement  or will be payable upon or in respect of the
issuance of the APS.

         5.2 REPRESENTATIONS AND WARRANTIES OF THE AUCTION AGENT.

         The Auction Agent represents and warrants to the Fund that:

                           (i) the  Auction  Agent  is  duly  organized  and  is
validly existing as a banking corporation in good standing under the laws of the
State of New York and has the  corporate  power to enter  into and  perform  its
obligations under this Agreement; and

                           (ii)  this  Agreement  has  been  duly  and   validly
authorized,  executed and  delivered by the Auction  Agent and  constitutes  the
legal,  valid and binding obligation of the Auction Agent,  enforceable  against
the  Auction  Agent  in  accordance  with  its  terms,  subject  to  bankruptcy,
insolvency,  reorganization and other laws of general applicability  relating to
or affecting creditors' rights and to general equitable principles.

VI.      THE AUCTION AGENT.

         6.1 DUTIES AND RESPONSIBILITIES.

                  (a) The Auction Agent is acting solely as  nonfiduciary  agent
for the Fund hereunder and owes no fiduciary duties to any Person.

                  (b) The Auction  Agent  undertakes  to perform such duties and
only such duties as are set forth specifically in this Agreement, and no implied
covenants or obligations  shall be read into this Agreement  against the Auction
Agent. To the extent any provision contained herein conflicts with any provision
incorporated herein by reference, the terms hereof shall control.

                  (c) In the absence of willful  misconduct or negligence on its
part,  the Auction Agent shall not be liable for any action  taken,  suffered or
omitted by it or for any error of judgment made by it in the  performance of its
duties under this Agreement.

                                       10
<PAGE>

                  (d) In no event shall the Auction Agent be liable for special,
punitive,  indirect  or  consequential  loss or  damage  of any kind  whatsoever
(including,  but not limited to, lost  profits),  even if the Auction  Agent has
been advised of the likelihood of such loss or damage and regardless of the form
of action.

         6.2 RIGHTS OF THE AUCTION AGENT.

                  (a) The Auction Agent may conclusively rely upon, and shall be
fully  protected in acting or  refraining  from acting upon,  any  communication
authorized  hereby  and  any  proper  written  instruction,   notice,   request,
direction, consent, report, certificate,  share certificate or other instrument,
paper or document  reasonably  believed by it to be genuine.  The Auction  Agent
shall not be liable for acting or  refraining  from  acting  upon any  telephone
communication  authorized hereby which the Auction Agent reasonably  believes in
good faith,  after  reasonable  inquiry,  to have been given by the Fund or by a
Broker-Dealer.  The Auction Agent may record telephone  communications  with the
Fund or with the Broker-Dealers or with both.

                  (b) The Auction  Agent may consult with counsel of its choice,
and the advice of such  counsel  shall be full and  complete  authorization  and
protection in respect of any action  taken,  suffered or omitted by it hereunder
in good faith and in reasonable reliance thereon.

                  (c) The Auction Agent shall not be required to advance, expend
or risk its own  funds  or  otherwise  incur  or  become  exposed  to  financial
liability in the performance of its duties hereunder. The Auction Agent shall be
under no liability for interest on any money received by it hereunder  except as
otherwise agreed to in writing with the Fund.

                  (d) The Auction  Agent may perform its duties and exercise its
rights  hereunder  either  directly or by or through agents or attorneys and, in
the  absence  of  misconduct  or  negligence  on the part of any  such  agent or
attorney, shall not be responsible for the conduct on the part of any such agent
or attorney appointed by it with due care.

                  (e) The  Auction  Agent  shall not be liable  for any error of
judgment  made in good faith  unless the Auction  Agent shall have been  grossly
negligent  in  ascertaining  (or  failing  to  ascertain)  the  pertinent  facts
necessary to make such  judgment.  In no event shall the Auction Agent be liable
for special,  indirect or  consequential  loss or damages of any kind whatsoever
(including,  but not limited to, loss of profits), even if the Auction Agent has
been advised of the  likelihood  of such loss or damages and  regardless  of the
form of action, except in the event of willful misconduct or gross negligence on
the part of the Auction Agent.

                  (f) The Auction  Agent shall not be required to and shall make
no representations and have no  responsibilities  as to the validity,  accuracy,
value or genuineness of any signatures or  endorsements,  other than its own and
those of its authorized officers.  The Auction Agent makes no representations as
to and shall have no liability  with respect to the  correctness of the recitals
in, or the validity,  accuracy or adequacy of this Agreement,  any Broker-Dealer
Agreement,  any offering  material used in connection with the offer and sale of
the APS or any other  agreement or instrument  executed in  connection  with the
transactions contemplated herein or in any thereof. The Auction Agent shall have
no obligation or liability in respect of the registration or exemption therefrom
of the APS under federal or state  securities laws in respect of the sufficiency
or the  conformity  of any  transfer  of the APS  pursuant  to the  terms of the
Auction Agency  Agreement,  any Broker-Dealer  Agreement,  or any other document
contemplated thereby or related thereto.

                                       11
<PAGE>

                  (g) Whenever in the  administration  of the provisions of this
Agreement the Auction  Agent shall deem it necessary or desirable  that a matter
be proved or  established  prior to taking or  suffering  any action to be taken
hereunder,  such matter  (unless  other  evidence  in respect  thereof be herein
specifically prescribed) may, in the absence of negligence, bad faith or willful
misconduct on the part of the Auction Agent, be deemed to be conclusively proved
and  established  by a  certificate  signed by the Fund or a  Broker-Dealer  and
delivered  to the  Auction  Agent,  and  such  certificate,  in the  absence  of
negligence,  bad faith or willful  misconduct on the part of the Auction  Agent,
shall be full warrant to the Auction Agent for any action taken or omitted by it
under the provisions of this Agreement upon the faith thereof.

                  (h)  The  Auction  Agent  shall  not  be  bound  to  make  any
investigation  into the facts or matters stated in any resolution,  certificate,
statement,  instrument,  opinion, report, notice, request, consent,  entitlement
order,  approval  or  other  paper  or  document  furnished  by  the  Fund  or a
Broker-Dealer,  except to the extent that such failure to  investigate  would be
deemed grossly negligent.

                  (i) Any corporation into which the Auction Agent may be merged
or converted or with which it may be consolidated,  or any corporation resulting
from any merger, conversion or consolidation to which the Auction Agent shall be
a party,  or any corporation  succeeding to the dealing and trading  business of
the Auction Agent shall be the successor of the Auction  Agent  hereunder,  with
the consent of the Fund but without  the  execution  or filing of any paper with
any party  hereto or any further  act on the part of any of the parties  hereto,
except  where any  instrument  of transfer or  assignment  is required by law to
effect such succession, anything herein to the contrary notwithstanding.

         6.3 COMPENSATION, EXPENSES AND INDEMNIFICATION.

                  (a) The Fund shall pay to the Auction  Agent from time to time
reasonable compensation for all services rendered by it under this Agreement and
under the  Broker-Dealer  Agreements as shall be set forth in a separate writing
signed by the Fund and the Auction  Agent,  subject to adjustments if the APS no
longer  are held of record by the  Securities  Depository  or its  nominee or if
there shall be such other change as shall  increase or decrease  materially  the
Auction Agent's obligations hereunder or under the Broker-Dealer Agreements.

                  (b) The  Fund  shall  reimburse  the  Auction  Agent  upon its
request for all reasonable expenses, disbursements and advances incurred or made
by the Auction Agent in accordance  with any provision of this  Agreement and of
the Broker-Dealer  Agreements (including the reasonable  compensation,  expenses
and disbursements of its agents and counsel),  except any expense,  disbursement
or advance attributable to its gross negligence or willful misconduct.

                  (c)  The  Fund  shall  indemnify  the  Auction  Agent  and its
officers, directors, employees and agents for, and hold it harmless against, any
loss,  liability  or  expense  incurred  without  gross  negligence  or  willful
misconduct on the part of the Auction Agent arising out of or in connection with
its  agency  under  this  Agreement  and  under  the  Broker-Dealer  Agreements,
including  the costs and  expenses  of  defending  itself  against  any claim of
liability in connection  with its exercise or  performance  of any of its duties
hereunder and thereunder, except such as may result from its gross negligence or
willful misconduct.

         6.4 FORCE MAJEURE

         The  Auction  Agent  shall not be  responsible  for or  liable  for any
failure or delay in the  performance  of its  obligations  under this  Agreement
arising out of or caused,  directly or indirectly,  by circumstances  beyond its
reasonable control,  including,  without limitation,  acts of God;  earthquakes;

                                       12
<PAGE>

fires; floods; wars; civil or military disturbances; sabotage; epidemics; riots;
acts of terrorism;  interruptions,  loss or malfunctions of utilities;  computer
(hardware or software) or communications  services;  accidents;  labor disputes;
acts of civil or military authority or governmental actions; it being understood
that the Auction Agent shall use reasonable  efforts which are  consistent  with
accepted  practices  in the banking  industry to resume  performance  as soon as
practicable under the circumstances.

VII.     MISCELLANEOUS.

         7.1 TERM OF AGREEMENT.

                  (a) The term of this Agreement is unlimited unless it shall be
terminated  as  provided  in this  Section  7.1.  The  Fund may  terminate  this
Agreement at any time by so  notifying  the Auction  Agent in writing,  provided
that,  if any APS  remain  outstanding,  the Fund  shall  have  entered  into an
agreement with a successor  auction agent.  The Auction Agent may terminate this
Agreement  upon prior  notice to the Fund on the date  specified in such notice,
which date shall be no earlier than 60 days after  delivery of such notice.  The
Auction  Agent may resign after 30 days  following the delivery of notice to the
Fund that the Auction  Agent has not been paid amounts due to it. If the Auction
Agent  terminates  this Agreement  while any APS remains  outstanding,  the Fund
shall use its best efforts to enter into an agreement  with a successor  auction
agent containing substantially the same terms and conditions as this Agreement.

                  (b) Except as otherwise  provided in this Section 7.1(b),  the
respective  rights  and  duties of the Fund and the  Auction  Agent  under  this
Agreement  shall  cease  upon   termination  of  this   Agreement.   The  Fund's
representations,  warranties,  covenants  and  obligations  to the Auction Agent
under  Sections 5.1 and 6.3 hereof shall survive the  termination  hereof.  Upon
termination  of this  Agreement,  the Auction  Agent shall (i) resign as Auction
Agent under the  Broker-Dealer  Agreements,  (ii) at the Fund's written request,
deliver promptly to the Fund copies of all books and records maintained by it in
connection  with its duties  hereunder,  and (iii) at the written request of the
Fund,  transfer promptly to the Fund or to any successor auction agent any funds
deposited by the Fund with the Auction Agent (whether in its capacity as Auction
Agent  or as  Paying  Agent)  pursuant  to this  Agreement  which  have not been
distributed previously by the Auction Agent in accordance with this Agreement.

         7.2 COMMUNICATIONS.

         Except  for (i)  communications  authorized  to be  made  by  telephone
pursuant to this Agreement or the Auction Procedures and (ii)  communications in
connection with Auctions (other than those expressly required to be in writing),
all notices,  requests and other  communications to any party hereunder shall be
in writing  (including  telecopy or similar  writing) and shall be given to such
party at its address or telecopier number set forth below:


If to the Fund,                   DNP Select Income Fund Inc.
addressed to:                     Attn:  Nathan I. Partain
                                  55 East Monroe Street, Suite 3600
                                  Chicago, Illinois 60603
                                  Telephone: (312) 630-4613
                                  Facsimile: (312) 630-2226
                                  Email: Nathan_Partain@dpimc.com

                                       13
<PAGE>

If to the Auction Agent,          The Bank of New York
addressed to:                     Corporate Trust Administration
                                  Attn: Dealing and Trading Group - Auction Desk
                                  101 Barclay Street, Floor 7W
                                  New York, New York 10286

                                  Telephone (212) 815-3450
                                  Facsimile: (212) 815-3440 or (212) 815-3443
                                  Email: bnyctauctionunit@bankofny.com

or such other address or telecopier  number as such parry  hereafter may specify
for such  purpose by notice to the other  party.  Each such  notice,  request or
communication shall be effective when delivered at the address specified herein.
Communications  shall be given on  behalf of the Fund by a Fund  Officer  and on
behalf of the Auction Agent by an Authorized Officer.

         7.3 ENTIRE AGREEMENT.

         This  Agreement  contains  the entire  agreement  between  the  parties
relating to the subject matter hereof,  and there are no other  representations,
endorsements,  promises, agreements or understandings, oral, written or implied,
between the parties  relating to the subject matter  hereof,  except for written
agreements relating to the compensation of the Auction Agent.

         7.4 BENEFITS.

         Nothing  herein,  express or implied,  shall give to any Person,  other
than the Fund,  the Auction Agent and their  respective  successors and assigns,
any benefit of any legal or equitable right, remedy or claim hereunder.

         7.5 AMENDMENT; WAIVER.

                  (a) This  Agreement  shall not be deemed  or  construed  to be
modified, amended, rescinded, canceled or waived, in whole or in part, except by
a written instrument signed by a duly authorized  representative of the party to
be charged.  The Fund shall notify the Auction Agent in writing of any change in
the Articles  Supplementary  prior to the effective date of any such change.  If
any such change in the Articles  Supplementary  materially increases the Auction
Agent's obligations hereunder,  the Fund shall obtain the written consent of the
Auction Agent prior to the effective date of such change.

                  (b) Failure of either  party  hereto to exercise  any right or
remedy  hereunder  in the event of a breach  hereof by the other party shall not
constitute a waiver of any such right or remedy with  respect to any  subsequent
breach.

         7.6 SUCCESSORS AND ASSIGNS.

         This Agreement  shall be binding upon,  inure to the benefit of, and be
enforceable by, the respective  successors and permitted  assigns of each of the
Fund and the Auction  Agent.  This Agreement may not be assigned by either party
hereto absent the prior written consent of the other party,  which consent shall
not be withheld unreasonably.

                                       14
<PAGE>

         7.7 SEVERABILITY.

         If any clause,  provision or section  hereof shall be ruled  invalid or
unenforceable  by  any  court  of  competent  jurisdiction,  the  invalidity  or
unenforceability  of such clause,  provision or section  shall not affect any of
the remaining clauses, provisions or sections hereof.

         7.8 EXECUTION IN COUNTERPARTS.

         This Agreement may be executed in several  counterparts,  each of which
shall be an  original  and all of which  shall  constitute  but one and the same
instrument.

         7.9 GOVERNING LAW.

         This  Agreement  shall be governed by and construed in accordance  with
the laws of the  State  of New  York  applicable  to  agreements  made and to be
performed in said state.

         7.10 JURISDICTION.

         The parties agree that all actions and proceedings  arising out of this
Auction Agency Agreement or any of the transactions contemplated hereby shall be
brought in the County of New York,  and, in  connection  with any such action or
proceeding,  submit to the jurisdiction  of, and venue in, such County.  Each of
the  parties  hereto also  irrevocably  waives all right to trial by jury in any
action,  proceeding  or  counterclaim  arising  out  of  this  Agreement  or the
transactions contemplated hereby.



                               [Signature pages follow]

                                       15
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly  authorized  officers as of
the date first above written.

                                          DNP SELECT INCOME FUND INC.



                                          By:
                                              ----------------------------------




                                          THE BANK OF NEW YORK, As Auction Agent



                                          By:
                                              ----------------------------------






                                       16
<PAGE>

                                                                       EXHIBIT A



                           DNP SELECT INCOME FUND INC.


                              THE BANK OF NEW YORK,
                                as Auction Agent

                             -----------------------

                             BROKER-DEALER AGREEMENT

                           dated as of [       ], 2006

                                   Relating to

                             Auction Preferred Stock

                                       of

                           DNP SELECT INCOME FUND INC.

                           ---------------------------

                               [                ]


<PAGE>

                             BROKER-DEALER AGREEMENT

         This Broker-Dealer Agreement dated as of [ ], 2006, is between The Bank
of New York, a New York banking  corporation  (the "Auction  Agent") (not in its
individual  capacity,  but solely as agent of DNP SELECT  INCOME FUND INC.  (the
"Fund")),  pursuant to authority  granted to it in the Auction Agency  Agreement
dated as of [ ], 2006  between  the Fund and the  Auction  Agent  (the  "Auction
Agency Agreement"), and [ ] (together with its successors and assigns, "BD").

         The Fund  proposes to issue  4,000  preferred  shares of the Fund,  par
value  $0.001 per share,  designated  Series M Auction  Preferred  Stock,  4,000
preferred  shares of the Fund, par value $0.001 per share,  designated  Series W
Auction  Preferred  Stock,  and 4,000  preferred  shares of the Fund,  par value
$0.001 per  share,  designated  Series F Auction  Preferred  Stock,  each with a
liquidation  preference of $25,000 per share, and may in the future issue one or
more additional  series of Auction  Preferred Stock  (collectively,  the "APS"),
pursuant to the Fund's Articles of Incorporation and the Articles  Supplementary
(as defined below).

         The Fund's Articles Supplementary provide that for each Dividend Period
after the initial  Dividend  Period,  the Applicable  Dividend Rate for APS then
outstanding  shall be equal to the rate per annum that  results  from an Auction
for  Outstanding  APS on the  respective  Auction  Date  therefor.  The Board of
Directors of the Fund has adopted a resolution  appointing  The Bank of New York
as Auction Agent for purposes of the Auction Procedures, and pursuant to Section
2.5 of the Auction  Agency  Agreement,  the Fund has  requested and directed the
Auction Agent to execute and deliver this Agreement.

         The  Auction  Procedures  require  the  participation  of one  or  more
Broker-Dealers.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants contained herein, the Auction Agent and BD agree as follows:

VIII.    DEFINITIONS AND RULES OF CONSTRUCTION.

         1.1 TERMS DEFINED BY REFERENCE TO THE ARTICLES SUPPLEMENTARY.

         Capitalized terms not defined herein shall have the respective meanings
specified in the Articles Supplementary.

         1.2 TERMS DEFINED HEREIN.

         As used herein, the following terms shall have the following  meanings,
unless the context otherwise requires:

                  (a)   "Articles   Supplementary"   shall  mean  any   articles
supplementary  filed by the Fund with the State  Department of  Assessments  and
Taxation of Maryland  specifying  the powers,  preferences  and rights of one or
more series of APS.

                  (b)  "Auction  Procedures"  shall mean the Auction  Procedures
that are set forth in Part II of the Articles Supplementary.

                  (c) "Authorized  Officer" of the Auction Agent shall mean each
Vice President, Assistant Vice President and Assistant Treasurer assigned to the
Dealing  and  Trading  Group of its  Corporate  Trust  Division  and every other
officer or employee of the Auction Agent  designated as an "Authorized  Officer"
for purposes of this Agreement in a written communication to BD.

<PAGE>

                  (d) "BD  Officer"  shall mean each  officer or  employee of BD
designated  as a "BD  Officer"  for  purposes  of this  Agreement  in a  written
communication to the Auction Agent.

                  (e)  "Broker-Dealer  Agreement"  shall mean this Agreement and
any   substantially   similar   agreement   between  the  Auction  Agent  and  a
Broker-Dealer.

         1.3 RULES OF CONSTRUCTION.

         Unless the context or use  indicates  another or  different  meaning or
intent, the following rules shall apply to the construction of this Agreement:

                  (a) Words  importing  the singular  number  shall  include the
plural number and vice versa.

                  (b)  The  captions   and   headings   herein  are  solely  for
convenience of reference and shall not constitute a part of this Agreement,  nor
shall they affect its meaning, construction or effect.

                  (c) The words "hereof," "herein," "hereto," and other words of
similar import refer to this Agreement as a whole.

                  (d) All references herein to a particular time of day shall be
to New York City time.

IX.      NOTIFICATION OF DIVIDEND.

         The  provisions  contained  in  Section  3 of  Part I of  the  Articles
Supplementary  concerning the  notification of a Special Dividend Period will be
followed by the Auction Agent and BD, and the provisions  contained  therein are
incorporated  herein by reference in their  entirety and shall be deemed to be a
part of this Agreement to the same extent as if such  provisions  were set forth
fully herein.

X.       THE AUCTION.

         1.4 PURPOSE; INCORPORATION BY REFERENCE OF AUCTION PROCEDURES.

                  (a) On  each  Auction  Date,  the  provisions  of the  Auction
Procedures  will be followed by the Auction Agent for the purpose of determining
the  Applicable  Dividend  Rate for the  APS,  for each  Dividend  Period.  Each
periodic  operation  of  such  procedures  is  hereinafter  referred  to  as  an
"Auction."

                  (b) All of the provisions  contained in the Auction Procedures
are incorporated herein by reference in their entirety and shall be deemed to be
a part of this Agreement to the same extent as if such provisions were set forth
fully herein.

                  (c) BD agrees to act as, and  assumes the  obligations  of and
limitations and restrictions  placed upon, a Broker-Dealer under this Agreement.
BD  understands  that other Persons  meeting the  requirements  specified in the
definition  of  "Broker-Dealer"  contained  in  "Definitions"  in  the  Articles
Supplementary   may  execute  a  Broker-Dealer   Agreement  and  participate  as
Broker-Dealers in Auctions.

                  (d) BD and other  Broker-Dealers  may  participate in Auctions
for their own accounts.  However, the Fund, by notice to BD and all other Broker
Dealers,  may prohibit all  Broker-Dealers  from submitting Bids in Auctions for
their own  accounts,  PROVIDED that  Broker-Dealers  may continue to submit Hold
Orders and Sell Orders.

                                       2
<PAGE>

         1.5 PREPARATION FOR EACH AUCTION.

                  (a) Not later than 9:30 A.M. on each Auction Date for the APS,
the Auction  Agent shall  advise BD by telephone  or other  electronic  means of
communication  acceptable to the parties of the Maximum  Dividend Rate in effect
on such Auction Date.

                  (b) The Auction  Agent from time to time may, but shall not be
obligated to, request BD to provide it with a list of the  respective  customers
BD believes are Beneficial Owners of APS. BD shall comply with any such request,
and the Auction Agent shall keep  confidential any such  information,  including
information received as to the identity of Bidders in any Auction, and shall not
disclose any such information so provided to any Person other than the Fund; and
such  information  shall  not be  used by the  Auction  Agent  or its  officers,
employees, agents or representatives for any purpose other than such purposes as
are described herein or in the Auction Agency Agreement; provided, however, that
the Auction  Agent  reserves  the right and is  authorized  to disclose any such
information  if (a) it is ordered to do so by a court of competent  jurisdiction
or a regulatory body, judicial or quasi-judicial  agency or authority having the
authority to compel such  disclosure,  (b) it is advised by its counsel that its
failure to do so would be  unlawful  or (c)  failure  to do so would  expose the
Auction Agent to loss, liability,  claim, damage or expense for which it has not
received indemnity or security satisfactory to it. In the event that the Auction
Agent is required to  disclose  information  in  accordance  with the  foregoing
sentence,  it shall provide written notice of such requirement to BD as promptly
as  practicable.  The Auction  Agent shall,  subject to the terms of the Auction
Agency  Agreement,  transmit any list of  customers  BD believes are  Beneficial
Owners of APS and information  related thereto only to its officers,  employees,
agents or representatives  who need to know such information for the purposes of
acting in  accordance  with this  Agreement,  and the  Auction  Agent  shall use
commercially  reasonable efforts to prevent the transmission of such information
to others and shall cause its officers, employees, agents and representatives to
abide by the foregoing confidentiality restrictions; PROVIDED, HOWEVER, that the
Auction Agent shall have no  responsibility  or liability for the actions of any
of its officers,  employees,  agents or representatives after they have left the
employ of the Auction Agent.

         1.6 AUCTION SCHEDULE; METHOD OF SUBMISSION OF ORDERS.

                  (a) The Fund and the Auction Agent shall conduct  Auctions for
APS in  accordance  with the  schedule  set forth  below.  Such  schedule may be
changed at any time by the  Auction  Agent with the  consent of the Fund,  which
consent shall not be withheld unreasonably.  The Auction Agent shall give notice
of any such  change to BD.  Such  notice  shall be  received  prior to the first
Auction Date on which any such change shall be effective.

TIME                                       EVENT

By 9:30 A.M.                     Auction  Agent  shall  advise  the Fund and the
                                 Broker-Dealers  of the Maximum Dividend Rate as
                                 set forth in Section 3.2(a) hereof.

9:30 A.M. - 1:00 P.M.            Auction   Agent  shall   assemble   information
                                 communicated   to  it  by   Broker-Dealers   as
                                 provided  in  Section  3(a)  of  Part II of the
                                 Articles  Supplementary.

Not earlier than 1:00 P.M.       Auction   Agent   shall   make   determinations
                                 pursuant  to  Section  3(a)  of  Part II of the
                                 Articles Supplementary.

                                       3
<PAGE>

TIME                                       EVENT

By approximately 3:30 P.M.       Auction  Agent  shall  advise  the  Fund of the
(and not later than the close    results of the  Auction as  provided in Section
of business)                     3(b) of Part II of the Articles Supplementary.

                                 Submitted  Bids and Submitted  Sell Orders will
                                 be  accepted  and  rejected in whole or in part
                                 and  APS  will  be  allocated  as  provided  in
                                 Section   4  of   Part   II  of  the   Articles
                                 Supplementary.

                                 Auction  Agent shall give notice of the Auction
                                 results as set forth in Section 3.4(a) hereof.

         Except  as  provided  in  the  immediately  following  paragraph,   the
Submission Deadline will be 1:00 P.M.; provided, however, that the Auction Agent
shall be  entitled  to  accept  Orders  from  any  Broker-Dealer  following  the
Submission  Deadline  (but in any event  prior to the  communication  of Auction
results as  provided  below) so long as the Orders from such  Broker-Dealer  are
accompanied by a certification  to the Auction Agent from such  Broker-Dealer to
the effect that (i) such Orders were  communicated to, and time-stamped by, such
Broker-Dealer  prior to the  Submission  Deadline and (ii) a force majeure event
(including,  without limitation, a technological failure or malfunction) impeded
the  Broker-Dealer's  ability  to  submit  the  Orders  prior to the  Submission
Deadline.

         The  Auction  Agent will follow the Bond  Market  Association's  Market
Practice U.S. Holiday  Recommendations  for shortened  trading days for the bond
markets  (the "BMA  Recommendation")  unless  the  Auction  Agent is  instructed
otherwise.  In  the  event  of a BMA  Recommendation  on an  Auction  Date,  the
Submission Deadline will be 11:30 A.M., instead of 1:00 P.M.

                  (b) BD  agrees  to  maintain  a list of  Potential  Beneficial
Owners and to contact the Potential  Beneficial  Owners on such list on or prior
to each  Auction  Date for the purposes set forth in Section 2 of Part II of the
Articles Supplementary.

                  (c) BD shall submit  Orders to the Auction Agent in writing in
substantially  the form attached  hereto as Exhibit A. BD shall submit  separate
Orders to the Auction Agent for each  Potential  Beneficial  Owner or Beneficial
Owner on whose behalf BD is  submitting  an Order and shall not net or aggregate
the Orders of Potential  Beneficial  Owners or Beneficial Owners on whose behalf
BD is submitting Orders.

                  (d) BD  shall  deliver  to the  Auction  Agent  (i) a  written
notice,  substantially in the form attached hereto as Exhibit B, of transfers of
APS, made through BD by an Existing Holder to another Person other than pursuant
to an Auction,  and (ii) a written  notice,  substantially  in the form attached
hereto as Exhibit C, of the failure of APS to be transferred to or by any Person
that purchased or sold APS through BD pursuant to an Auction.  The Auction Agent
is not  required  to accept any notice  delivered  pursuant  to the terms of the
foregoing  sentence  with  respect to an Auction  unless it is  received  by the
Auction  Agent by 3:00 P.M. on the Business Day next  preceding  the  applicable
Auction Date.

         1.7 NOTICE OF AUCTION RESULTS.

                  (a) On each Auction Date, the Auction Agent shall notify BD by
telephone or other  electronic  means  acceptable  to the parties of the Auction
results.  On the Business Day next  succeeding  such Auction  Date,  the Auction
Agent shall notify BD in writing of the  disposition of all Orders  submitted by
BD in the Auction held on such Auction Date.

                                       4
<PAGE>

                  (b)  BD  shall  notify  each   Beneficial   Owner,   Potential
Beneficial  Owner,  Existing  Holder or Potential  Holder on whose behalf BD has
submitted  an Order,  of the Auction  results  and take such other  action as is
required of BD.

         If any  Beneficial  Owner or Existing  Holder selling APS in an Auction
fails to deliver such shares,  the  Broker-Dealer of any Person that was to have
purchased  APS in such  Auction  may  deliver  to such  Person a number of whole
shares of APS that is less than the number of shares  that  otherwise  was to be
purchased  by such Person.  In such event,  the number of APS to be so delivered
shall be  determined  by such  Broker-Dealer.  Delivery of such lesser number of
shares shall  constitute good delivery.  Upon the occurrence of any such failure
to deliver  shares,  such  Broker-Dealer  shall deliver to the Auction Agent the
notice  required by Section  3.3(d)(ii)  hereof.  Notwithstanding  the foregoing
terms  of this  Section  3.4(b),  any  delivery  or  non-delivery  of APS  which
represents  any departure  from the results of an Auction,  as determined by the
Auction  Agent,  shall be of no effect  unless and until the Auction Agent shall
have been notified of such delivery or non-delivery in accordance with the terms
of Section  3.3(d)(ii) hereof. The Auction Agent shall have no duty or liability
with respect to enforcement of this Section 3.4(b). Any delivery or non-delivery
of APS which  represents  any departure from the results of an Auction shall not
affect the results of the Auction.

         1.8 SERVICE CHARGE TO BE PAID TO BD.

         On the Business Day next  succeeding  each  Auction  Date,  the Auction
Agent shall pay to BD from moneys received from the Fund an amount equal to: (a)
in the case of any Auction Date immediately  preceding a Dividend Period of less
than one year,  the  product of (i) a  fraction  the  numerator  of which is the
number of days in such Dividend Period  (calculated by counting the first day of
such Dividend  Period but excluding the last day thereof) and the denominator of
which is 360, times (ii) 1/4 of 1%, times (iii)  $25,000,  times (iv) the sum of
(A) the aggregate number of APS placed by BD in the applicable Auction that were
(x) the subject of a Submitted  Bid of a  Beneficial  Owner  submitted by BD and
continued  to be held as a result of such  submission  and (y) the  subject of a
Submitted Bid of a Potential Beneficial Owner submitted by BD and were purchased
as a result of such submission  plus (B) the aggregate  number of APS subject to
valid Hold Orders  (determined  in  accordance  with Section 2 of Part II of the
Articles Supplementary) submitted to the Auction Agent by BD plus (C) the number
of APS deemed to be subject to Hold  Orders by  Beneficial  Owners  pursuant  to
Section 2 of Part II of the Articles  Supplementary that were acquired by BD for
its own account or were acquired by such  Beneficial  Owners through BD; and (b)
in the case of any Auction Date immediately  preceding a Special Dividend Period
of one year or longer,  that amount as mutually  agreed upon by the Fund and BD,
based on the selling  concession  that would be applicable to an underwriting of
fixed or  variable  rate  preferred  shares  with a similar  final  maturity  or
variable rate dividend  period,  at the  commencement  of such Special  Dividend
Period.

         For purposes of subclause (a)(iv)(C) of the foregoing sentence,  if any
Beneficial  Owner who acquired APS through BD transfers  those shares to another
Person other than pursuant to an Auction,  then the Broker-Dealer for the shares
so transferred shall continue to be BD, PROVIDED,  HOWEVER, that if the transfer
was effected by, or if the  transferee is, a  Broker-Dealer  other than BD, then
such Broker-Dealer shall be the Broker-Dealer for such shares.

XI.      THE AUCTION AGENT

         4.1. DUTIES AND RESPONSIBILITIES.

                  (a) The Auction Agent is acting solely as  nonfiduciary  agent
for the Fund hereunder and owes no fiduciary duties to any Person.

                                       5
<PAGE>

                  (b) The Auction  Agent  undertakes  to perform such duties and
only such duties as are set forth specifically in this Agreement, and no implied
covenants or  obligations  shall be read into the Agreement  against the Auction
Agent.

                  (c) In the absence of  negligence,  bad faith or misconduct on
its part,  the Auction Agent shall not be liable for any action taken,  suffered
or omitted by it or for any error of judgment made by it in the  performance  of
its duties under this Agreement.

                  (d) In no event shall the Auction Agent be liable for special,
punitive,  indirect  or  consequential  loss or  damage  of any kind  whatsoever
(including,  but not limited to, lost  profits),  even if the Auction  Agent has
been advised of the likelihood of such loss or damage and regardless of the form
of action.

         4.2. RIGHTS OF THE AUCTION AGENT.

                  (a) The Auction Agent may conclusively rely upon, and shall be
fully  protected in acting or  refraining  from acting upon,  any  communication
authorized  hereby  and  any  proper  written  instruction,   notice,   request,
direction, consent, report, certificate,  share certificate or other instrument,
paper or document  reasonably  believed by it to be genuine.  The Auction  Agent
shall not be liable for acting or  refraining  from  acting  upon any  telephone
communication  authorized hereby which the Auction Agent reasonably  believes in
good faith,  after  reasonable  inquiry,  to have been given by the Fund or by a
Broker-Dealer.  The Auction Agent may record telephone  communications  with the
Fund or with the Broker-Dealers or with both.

                  (b) The Auction  Agent may consult with counsel of its choice,
and the advice of such  counsel  shall be full and  complete  authorization  and
protection in respect of any action  taken,  suffered or omitted by it hereunder
in good faith and in reasonable reliance thereon.

                  (c) The Auction Agent shall not be required to advance, expend
or risk its own  funds  or  otherwise  incur  or  become  exposed  to  financial
liability in the performance of its duties hereunder. The Auction Agent shall be
under no liability for interest on any money received by it hereunder  except as
otherwise agreed to in writing with the Fund.

                  (d) The Auction  Agent may perform its duties and exercise its
rights  hereunder  either  directly or by or through agents or attorneys and, in
the absence of willful  misconduct  or gross  negligence on the part of any such
agent or attorney,  shall not be responsible  for the conduct on the part of any
such agent or attorney appointed by it with due care.

                  (e) The  Auction  Agent  shall not be liable  for any error of
judgment  made in good faith  unless the Auction  Agent shall have been  grossly
negligent  in  ascertaining  (or  failing  to  ascertain)  the  pertinent  facts
necessary to make such  judgment.  In no event shall the Auction Agent be liable
for special,  indirect or  consequential  loss or damages of any kind whatsoever
(including,  but not limited to, loss of profits), even if the Auction Agent has
been advised of the  likelihood  of such loss or damages and  regardless  of the
form of action, except in the event of willful misconduct or gross negligence on
the part of the Auction Agent.

                  (f) The Auction  Agent shall not be required to and shall make
no representations and have no  responsibilities  as to the validity,  accuracy,
value or genuineness of any signatures or  endorsements,  other than its own and
those of its authorized officers.

                                       6
<PAGE>

                  (g) Whenever in the  administration  of the provisions of this
Agreement the Auction  Agent shall deem it necessary or desirable  that a matter
be proved or  established  prior to taking or  suffering  any action to be taken
hereunder,  such matter  (unless  other  evidence  in respect  thereof be herein
specifically  prescribed)  may,  in the  absence  of  negligence,  bad  faith or
misconduct on the part of the Auction Agent, be deemed to be conclusively proved
and  established  by a  certificate  signed by the Fund or a  Broker-Dealer  and
delivered  to the  Auction  Agent,  and  such  certificate,  in the  absence  of
negligence,  bad faith or misconduct on the part of the Auction Agent,  shall be
full  warrant to the Auction  Agent for any action  taken or omitted by it under
the provisions of this Agreement upon the faith thereof.

                  (h)  The  Auction  Agent  shall  not  be  bound  to  make  any
investigation  into the facts or matters stated in any resolution,  certificate,
statement,  instrument,  opinion, report, notice, request, consent,  entitlement
order,  approval  or  other  paper  or  document  furnished  by  the  Fund  or a
Broker-Dealer,  except to the extent that such failure to  investigate  would be
deemed grossly negligent.

                  (i) Any corporation into which the Auction Agent may be merged
or converted or with which it may be consolidated,  or any corporation resulting
from any merger, conversion or consolidation to which the Auction Agent shall be
a party,  or any corporation  succeeding to the dealing and trading  business of
the Auction Agent shall be the successor of the Auction  Agent  hereunder,  with
the consent of the Fund and BD but without the  execution or filing of any paper
with any party hereto,  except where any instrument or transfer or assignment is
required  by law to effect  such  succession,  anything  herein to the  contrary
notwithstanding.

XII.     MISCELLANEOUS.

         1.9 TERMINATION.

         Any party may  terminate  this  Agreement  at any time upon five  days'
prior  written  notice  to the  other  party;  PROVIDED,  HOWEVER,  that  if the
Broker-Dealer is [                ], it may not terminate this Agreement without
first obtaining the prior written consent of the Fund to such termination, which
consent  shall  not be  withheld  unreasonably.  The  Auction  Agent is  without
discretion  to  terminate  this  Agreement  and will move to  terminate  it only
pursuant to written direction from the Fund. This Agreement shall  automatically
terminate upon the redemption of all outstanding APS or upon  termination of the
Auction Agent Agreement.

         1.10 FORCE MAJEURE.

         Neither party to this Agreement  shall be responsible or liable for any
failure or delay in the  performance  of its  obligations  under this  Agreement
arising out of or caused,  directly or indirectly,  by circumstances  beyond its
reasonable control,  including,  without limitation,  acts of God;  earthquakes;
fires;  floods;  wars;  civil  or  military  disturbances;   sabotage;  acts  of
terrorism;  epidemics; riots; interruptions,  loss or malfunctions or utilities;
computer  (hardware or  software)  or  communications  services  (provided  that
Auction  Agent  has not  been  grossly  negligent  with  respect  to  selection,
operation or maintenance of such utilities,  computer  (hardware or software) or
communications  service);  accidents;  labor disputes; acts of civil or military
authority or governmental  actions;  it being  understood that the parties shall
use  reasonable  efforts which are  consistent  with  accepted  practices in the
banking  industry  to  resume  performance  as soon  as  practicable  under  the
circumstances.

         1.11  PARTICIPANT  IN  SECURITIES  DEPOSITORY;  PAYMENT OF DIVIDENDS IN
SAME-DAY FUNDS.

                  (a) BD is, and shall remain for the term of this Agreement,  a
member of, or a participant  in, the  Securities  Depository (or an affiliate of
such a member or participant).

                                       7
<PAGE>

                  (b) BD  represents  that  it (or if BD does  not act as  Agent
Member,  one of its  affiliates)  shall make all  dividend  payments  on the APS
available in same-day funds on each Dividend  Payment Date to customers that use
BD (or its affiliate) as Agent Member.

         1.12 AGENT MEMBER.

         At the date hereof, BD is a participant of the Securities Depository.

         1.13 COMMUNICATIONS.

         Except  for (i)  communications  authorized  to be  made  by  telephone
pursuant to this Agreement or the Auction Procedures and (ii)  communications in
connection  with the  Auctions  (other  than those  expressly  required to be in
writing), all notices,  requests and other communications to any party hereunder
shall be in writing  (including  telecopy or similar writing) and shall be given
to such party at its address or telecopier number set forth below:

If to the Auction Agent,
addressed to:                The Bank of New York
                             Corporate Trust Administration
                             Attention: Dealing and Trading Group - Auction Desk
                             101 Barclay Street, Floor 7W
                             New York, New York  10286
                             Telephone No.: (212) 815-3450
                             Facsimile No.: (212) 815-3440 or (212) 815-3443
                             Email: bnyctauctionunit@bankofny.com
If to the BD,
addressed to:



                             Telephone No.:
                             Facsimile No.:

         or such other address or telecopier  number as such party hereafter may
         specify  for such  purpose  by  notice to the  other  party.  Each such
         notice,  request or communication  shall be effective when delivered at
         the address specified herein.  Communications  shall be given on behalf
         of BD by a BD  Officer  and  on  behalf  of  the  Auction  Agent  by an
         Authorized  Officer.  BD may record telephone  communications  with the
         Auction Agent.

         1.14 ENTIRE AGREEMENT.

         This  Agreement  contains  the entire  agreement  between  the  parties
relating to the subject matter hereof,  and there are no other  representations,
endorsements,  promises, agreements or understandings, oral, written or implied,
between the parties relating to the subject matter hereof.

         1.15 BENEFITS.

         Nothing  in this  Agreement,  express  or  implied,  shall  give to any
person,  other  than the Fund,  the  Auction  Agent and BD and their  respective
successors and permitted  assigns,  any benefit of any legal or equitable right,
remedy or claim under this Agreement.

                                       8
<PAGE>

         1.16 AMENDMENT; WAIVER.

                  (a) This  Agreement  shall not be deemed  or  construed  to be
         modified, amended, rescinded,  canceled or waived, in whole or in part,
         except  by  a   written   instrument   signed  by  a  duly   authorized
         representative of the party to be charged.

                  (b) Failure of either party to this  Agreement to exercise any
         right or remedy hereunder in the event of a breach of this Agreement by
         the other  party  shall not  constitute  a waiver of any such  right or
         remedy with respect to any subsequent breach.

         1.17 SUCCESSORS AND ASSIGNS.

         This Agreement  shall be binding upon,  inure to the benefit of, and be
enforceable  by, the respective  successors and permitted  assigns of each of BD
and the Auction Agent. This Agreement may not be assigned by either party hereto
absent the prior written consent of the other party and the Fund.

         1.18 SEVERABILITY.

         If any clause,  provision or section of this  Agreement  shall be ruled
invalid or unenforceable by any court of competent jurisdiction,  the invalidity
or  unenforceability  of such clause,  provision or section shall not affect any
remaining clause, provision or section hereof.

         1.19 EXECUTION IN COUNTERPARTS.

         This Agreement may be executed in several  counterparts,  each of which
shall be an  original  and all of which  shall  constitute  but one and the same
instrument.

         1.20 GOVERNING LAW.

         This  Agreement  shall be governed by and construed in accordance  with
the laws of the  State  of New  York  applicable  to  agreements  made and to be
performed wholly in said state.

         1.21 JURISDICTION.

         The parties agree that all actions and proceedings  arising out of this
Broker-Dealer Agreement or any of the transactions  contemplated hereby shall be
brought in the County of New York,  and, in  connection  with any such action or
proceeding,  submit to the jurisdiction  of, and venue in, such County.  Each of
the  parties  hereto also  irrevocably  waives all right to trial by jury in any
action,  proceeding  or  counterclaim  arising  out  of  this  Agreement  or the
transactions contemplated hereby.


                            [SIGNATURE PAGES FOLLOW]


                                       9
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their proper and duly  authorized  officers as of
the date first above written.

                                         THE BANK OF NEW YORK, As Auction Agent


                                         By:
                                              ---------------------------------
                                              Name:
                                              Title:

                                         [Name of Broker-Dealer]


                                         By:
                                              ---------------------------------
                                              Name:
                                              Title:



                                       10
<PAGE>

                                    EXHIBIT A

                              THE BANK OF NEW YORK
                                AUCTION BID FORM

<TABLE>
<CAPTION>
Submit To:                                                     Issue:
- ---------                                                      -----
<S>                                                            <C>
The Bank of New York                                           DNP SELECT INCOME FUND INC.
Corporate Trust Administration                                 Auction Preferred Stock ("APS")
Attention: Dealing and Trading Group-Auction Desk
101 Barclay Street, Floor 7W
New York, New York  10286
Telephone No.: (212) 815-3450

Facsimile No.: (212) 815-3440 or (212) 815-3443

The  undersigned  Broker-Dealer  submits  the  following  Order on behalf of the
Bidder listed below:

Name of Bidder:
               --------------------------------------




                                BENEFICIAL OWNER

APS now held                                                   HOLD
             -------------------                                    ---------------------------
                                                               BID at rate of
                                                                              -----------------
Series                                                         SELL
       -----------                                                  ---------------------------
</TABLE>



                           POTENTIAL BENEFICIAL OWNER

                                                 # of Series ___ APS ___________
                                                 BID at rate of __________




         Notes:

         (1)      If submitting more than one Bid for one Bidder, use additional
                  Auction Bid Forms.

         (2)      If one or more Bids  covering in the  aggregate  more than the
                  number of outstanding  shares held by any Beneficial Owner are
                  submitted,  such bid shall be considered valid in the order of
                  priority  set  forth in the  Auction  Procedures  on the above
                  issue.

         (3)      A Hold or Sell Order may be placed only by a Beneficial  Owner
                  covering  a number of shares  not  greater  than the number of
                  shares currently held.

         (4)      Potential  Beneficial Owners may make only Bids, each of which
                  must  specify  a rate.  If more than one Bid is  submitted  on
                  behalf of any Potential  Beneficial  Owner, each Bid submitted
                  shall be a separate Bid with the rate specified.


                                       A-1
<PAGE>

         (5)      Bids may  contain no more than  three  figures to the right of
                  the  decimal  point  (.001  of  1%).  Fractions  will  not  be
                  accepted.

         (6)      An Order  must be  submitted  in whole  shares  of APS with an
                  aggregate liquidation preference of $25,000.





         [Name of Broker-Dealer]


         ----------------------------------------------------

         Authorized Signature
                             --------------------------------




                                       A-2

<PAGE>

                                    EXHIBIT B

         (Note:  To be used only for  transfers  made other than  pursuant to an
         Auction)

                                  TRANSFER FORM

         Re:    DNP SELECT INCOME FUND INC.
                Auction Preferred Stock ("APS")

We are (check one):

         [ ] the Existing Holder named below;

         [ ] the Broker-Dealer for such Existing Holder; or

         [ ] the Agent Member for such Existing Holder.

         We  hereby  notify  you that  such  Beneficial  Owner  has  transferred
____________ Series ___ APS to __________________________________________





                                                --------------------------------
                                                (Name of Existing Holder)


                                                --------------------------------
                                                (Name of Broker-Dealer)


                                                --------------------------------
                                                (Name of Agent Member)



By:
     ------------------------------------
     Printed                                                               Name:
     Title:


                                       B-1

<PAGE>

                                    EXHIBIT C

          (Note: To be used only for failures to deliver or to pay for
                        APS sold pursuant to an Auction)

                         NOTICE OF A FAILURE TO DELIVER

         We are a Broker-Dealer for  _______________________  (the "Purchaser"),
which purchased  _________  Series ___ APS of DNP SELECT INCOME FUND INC. in the
Auction held on ____________________ from the seller of such shares.

         We hereby notify you that (check one):

______ the Seller failed to deliver such shares to the Purchaser.

______ the Purchaser  failed to make payment to the Seller upon delivery of such
shares.


                                         Name:
                                               ---------------------------------
                                               [Name of Broker-Dealer]


                                         By:
                                               ---------------------------------
                                               Printed Name:
                                               Title:



                                       C-1

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.N
<SEQUENCE>6
<FILENAME>c42214_ex99-n.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">
<A name="page_1"></A>

<P align="right"> <FONT face="serif">Exhibit n</FONT></P>
<P align="center"><FONT face="serif">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM</FONT></P>
<P align="justify">
<FONT face="serif">We consent to the reference to our firm under the captions &#147;Financial Highlights &#150;Selected Per Share Data and Ratios&#148;, &#147;Financial Highlights &#150; Information Regarding Senior Securities&#148; and
&#147;Experts&#148; and to the use of our report dated February 15, 2006 incorporated by reference in the Registration Statement (Form N-2) and related Prospectus and Statement of Additional Information of the DNP Select Income Fund Inc. filed with
the Securities and Exchange Commission in this Registration Statement under the Securities Act of 1933 and in this Amendment No. 51 to the Registration Statement under the Investment Company Act of 1940 (Registration No. 811-04915). </FONT></P>
<P align="right">
<FONT face="serif">ERNST &amp; YOUNG LLP&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></P>
<P>
<FONT face="serif">Chicago, Illinois <br>
April 27, 2006</FONT><B><FONT face="serif"> </FONT></B></P>

<HR noshade  width="100%" size=4>

</BODY>

</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2S
<SEQUENCE>7
<FILENAME>c42214_ex99-2s.htm
<TEXT>

<HTML>
<HEAD>
   <TITLE></TITLE>
</HEAD>

<BODY bgcolor="#ffffff">


<P align="right"> <FONT face="serif">Exhibit s </FONT></P>
<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that </FONT><B><FONT size=2 face="serif">STEWART E. CONNER </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=54% align=right>&nbsp;</TD>
	<TD width=46% align=left>
<FONT size=2 face="serif">/s/ S</FONT><FONT size=2 face="serif">TEWART </FONT><FONT size=2 face="serif">E. C</FONT><FONT size=2 face="serif">ONNER</FONT>&nbsp;
	</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
	<TD align="left">
<HR align="left" width="60%" size=1 noshade>
	</TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="serif">Name: Stewart E. Conner</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that </FONT><B><FONT size=2 face="serif">CONNIE K. DUCKWORTH </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for her and in her name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ C</FONT><font size=2 face="serif">ONNIE </font><font size=2 face="serif">K.
        D</font><font size=2 face="serif">UCKWORTH</font>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><font size=2 face="serif">Connie
    K. Duckworth</font> </TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">2 </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>ROBERT J. GENETSKI </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 14</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">R</FONT><FONT size=2 face="serif">OBERT </FONT><FONT size=2 face="serif">J.
    G</FONT><FONT size=2 face="serif">ENETSKI</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Robert
    J. Genetski</FONT>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center">&nbsp;</P>
<P align="center"><BR>
  <FONT size=2 face="serif">3</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>FRANCIS E. JEFFRIES </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">F</FONT><FONT size=2 face="serif">RANCIS </FONT><FONT size=2 face="serif">E.
    J</FONT><FONT size=2 face="serif">EFFRIES</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Francis
    E. Jeffries</FONT></TD>
  </TR>
</TABLE>
<P><BR>
</P>
<P align="center"><FONT size=2 face="serif">4</FONT> </P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">NANCY LAMPTON </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for her and in her name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">N</FONT><FONT size=2 face="serif">ANCY </FONT><FONT size=2 face="serif">L</FONT><FONT size=2 face="serif">AMPTON</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Nancy
    Lampton</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">5</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">,
that <B>CHRISTIAN H. POINDEXTER </B>(&#147;<U>Principal</U>&#148;)
does hereby nominate, constitute and appoint each of Nathan I. Partain and T.
Brooks Beittel, with full power to act alone, as Principal&#146;s
true and lawful agent and attorney-in-fact, for him and in his name, place and
stead, to execute and deliver on behalf of Principal, any registration statements
on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public
offering of  its preferred shares, including any and all pre-effective and post-effective
amendments to such registration statements and supplements or other instruments
in connection therewith (the &#147;Documents&#148;), and generally to do all
such things in  Principal&#146;s name and behalf in connection therewith as said
attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s
execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 14</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">C</FONT><FONT size=2 face="serif">HRISTIAN </FONT><FONT size=2 face="serif">H.
    P</FONT><FONT size=2 face="serif">OINDEXTER</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Christian
    H. Poindexter</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">6</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">CARL F. POLLARD </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for him and in his name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif"> C</FONT><FONT size=2 face="serif">ARL </FONT><FONT size=2 face="serif">F.
    P</FONT><FONT size=2 face="serif">OLLARD</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">Carl
    F. Pollard</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">7</FONT><BR>
</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT size=2 face="serif">LIMITED POWER OF ATTORNEY</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT size=2 face="serif">, that </FONT><B><FONT size=2 face="serif">DAVID J. VITALE </FONT></B><FONT size=2 face="serif">(&#147;</FONT><U><FONT size=2 face="serif">Principal</FONT></U><FONT size=2 face="serif">&#148;) does hereby nominate, constitute and appoint each of Nathan I. Partain and T. Brooks Beittel, with full power to act alone, as Principal&#146;s true and lawful agent and attorney-in-fact,
for him and in his name, place and stead, to execute and deliver on behalf of Principal, any registration statements on Form N-2 filed by DNP Select Income Fund Inc. in connection with a public offering of its preferred shares, including any and all
pre-effective and post-effective amendments to such registration statements and supplements or other instruments in connection therewith (the &#147;Documents&#148;), and generally to do all such things in Principal&#146;s name and behalf in
connection therewith as said attorney-in-fact shall approve, as evidenced by said attorney-in-fact&#146;s execution and delivery of the Documents.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">This Limited Power of Attorney shall be irrevocable until June 30, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">IN WITNESS WHEREOF</FONT></B><FONT size=2 face="serif">, Principal has executed this Limited Power of Attorney as of this 12</FONT><SUP><FONT size=2 face="serif">th</FONT></SUP><FONT size=2 face="serif"> day of
December, 2005.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=54% align=right>&nbsp;</TD>
    <TD width=46% align=left><FONT size=2 face="serif">/s/ </FONT><FONT size=2 face="serif">D</FONT><FONT size=2 face="serif">AVID </FONT><FONT size=2 face="serif">J.
    V</FONT><FONT size=2 face="serif">ITALE</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD align="left"><HR align="left" width="60%" size=1 noshade>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">Name: </FONT><FONT size=2 face="serif">David
    J. Vitale</FONT></TD>
  </TR>
</TABLE>
<P>&nbsp;</P>
<center>
  <FONT size=2 face="serif">8</FONT><BR>
</center>
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