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<SEC-DOCUMENT>0000930413-06-005084.txt : 20060705
<SEC-HEADER>0000930413-06-005084.hdr.sgml : 20060704
<ACCEPTANCE-DATETIME>20060705172910
ACCESSION NUMBER:		0000930413-06-005084
CONFORMED SUBMISSION TYPE:	N-2/A
PUBLIC DOCUMENT COUNT:		11
FILED AS OF DATE:		20060705
DATE AS OF CHANGE:		20060705

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/A
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-133715
		FILM NUMBER:		06945427

	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/A
		SEC ACT:		1940 Act
		SEC FILE NUMBER:	811-04915
		FILM NUMBER:		06945428

	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/A
<SEQUENCE>1
<FILENAME>c42214_n2a.htm
<TEXT>
 <HTML>

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


<p> </p>
<p align="center"><font size=2 face="serif">As filed with the Securities and
    Exchange Commission on July 5, 2006 </font></p>

<P align="center">&nbsp;</P>

<P align="right">
<FONT size=2 face="serif">1933 Act File No. 333-133715</FONT><BR>
<FONT size=2 face="serif">1940 Act File No. 811-04915 </FONT></P>
<p> </p>
<hr noshade size=3>
<hr size="1" noshade>
<center>
  <p align="left"><BR>
 </p>
  <p><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></p>
</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. 1 </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. 52</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="left"> </P>
<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=34% align=center> <b><font size=2 face="serif">John R. Sagan, Esq.</font></b>&nbsp; </td>
    <td width="31%" align=center><b><font size=2 face="serif">Thomas A. Hale </font></b></td>
    <td width="35%" align=center> <b><font size=2 face="serif">Kevin J. Carr,
          Esq.</font></b>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td width=34% 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">Skadden, Arps, Slate, </font></b></td>
    <td align=center> <b><font size=2 face="serif">Phoenix Life Insurance Company</font></b>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td width=34% 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">Meagher &amp; Flom LLP </font></b></td>
    <td align=center> <b><font size=2 face="serif">One American Row</font></b>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td width=34% 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">333 West Wacker Drive </font></b></td>
    <td align=center> <b><font size=2 face="serif">Hartford, Connecticut 06102</font></b>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td width=34% align=center> <b><font size=2 face="serif">Chicago, Illinois
          60606</font></b>&nbsp; </td>
    <td align=center><b><font size=2 face="serif">Chicago, Illinois 60606 </font></b></td>
    <td align=center> <b><font size=2 face="serif">(860) 403-5000</font></b>&nbsp; </td>
  </tr>
  <tr valign="bottom">
    <td width=34% align=center> <b><font size=2 face="serif">(312) 782-0600</font></b>&nbsp; </td>
    <td align=left><center>
        <b><font size=2 face="serif">(312) 407-0700</font></b>
    </center></td>
    <td align=left>&nbsp; </td>
  </tr>
</table>

<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> </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<sup>(1)</sup></font>
      </center></td>
  </tr>
  <tr>
    <td colspan="8"><hr size="1" noshade>
        <hr size="1" noshade>
    </td>
  </tr>
</table>
<p> <font size=2 face="serif"> (1) &nbsp;Previously paid</font></p>
<p> </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>


<P align="left" style="page-break-before:always"></P><PAGE>

<P>
<FONT size=2 face="sans-serif">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>
<P> </P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=23% align=center>
      <div align="left"><B><FONT size=2 face="sans-serif">PRELIMINARY PROSPECTUS</FONT></B>&nbsp;
      </div></TD>
        <TD width=17%>&nbsp;
        </TD>
        <TD width=18% align=center>
<B><FONT size=2 face="sans-serif">Subject to Completion</FONT></B>&nbsp;
        </TD>
        <TD width=33%>&nbsp;
        </TD>
        <TD width=9% align=right nowrap>
<FONT size=2 face="sans-serif">July 5, 2006</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<HR noshade size=1>
<p> <BR>
</p>
<P>
<B><FONT size=4 face="sans-serif">&#36;200,000,000 <br>
</FONT></B><FONT size=6 face="serif">DNP Select Income Fund Inc. </FONT></P>
<P> </P>
<p> <b><font size=4 face="sans-serif">4,000 Shares Series T 4,000 Shares Series TH<br>
  </font></b><b><font size=4 face="sans-serif">Auction Preferred Stock (&#147;APS&#148;) <br>
</font></b><b><font size=4 face="sans-serif">Liquidation Preference &#36;25,000 Per Share </font></b></p>
<p> </p>
<p>&nbsp;</p>
<HR noshade size=1>


<B><FONT size=4 face="sans-serif"></FONT></B>
<P>
<B><FONT size=2 face="serif">Investment objectives. </FONT></B><FONT size=2 face="serif">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>
<P>
<B><FONT size=2 face="serif">Investment adviser. </FONT></B><FONT size=2 face="serif">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 &#36;6.6 billion in assets, including approximately &#36;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>
<P>
<B><FONT size=2 face="serif">Portfolio contents. </FONT></B><FONT size=2 face="serif">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. </FONT></P><P align="right"><I><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; (continued on inside cover)</FONT></I></P>
<p> </p><P>
<B><FONT size=2 face="serif">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 21 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.</FONT></B></P>
<p> </p><P>
<B><FONT size=2 face="serif">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. </FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=6% align=left nowrap>&nbsp;

        </TD>
        <TD width=44%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">Price to public</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Sales load</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=center>
<B><FONT size=1 face="sans-serif">Proceeds to Fund(1)</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13 nowrap>
<HR noshade size=1>     </TD>
</TR>
<TR valign="bottom">
        <TD width=6% align=left nowrap>
<FONT size=2 face="sans-serif">Per share</FONT>&nbsp;
        </TD>
        <TD width=44%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="sans-serif">&#36;25,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="sans-serif">&#36;250</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="sans-serif">&#36;24,750</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13 nowrap>
<HR noshade size=1>     </TD>
</TR>
<TR valign="bottom">
        <TD width=6% align=left nowrap>
<FONT size=2 face="sans-serif">Total</FONT>&nbsp;
        </TD>
        <TD width=44%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="sans-serif">&#36;200,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="sans-serif">&#36;2,000,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=13% align=right>
<FONT size=2 face="sans-serif">&#36;198,000,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=13 nowrap>
<HR noshade size=1>     </TD>
</TR>
</TABLE>
<p> </p>


<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="top">
        <TD width="22" nowrap>
<FONT size=1 face="serif">(1)</FONT></TD>
        <TD width="871">
<FONT size=1 face="serif">Plus accumulated dividends, if any, from the date the APS are issued, but before offering expenses payable by the Fund estimated to be approximately &#36;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>      </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 July&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;,
2006.</FONT></P>
<P align="center"><B><FONT size=5 face="sans-serif">UBS Investment Bank</FONT></B></P>
<p> </p>
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<HR noshade size=1>
<P>
<I><FONT size=1 face="serif">(continued from previous page)</FONT></I>
</P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 &#36;25,000.
  The Fund may redeem APS as described under &#147;Description of APS&#151;Redemption.&#148;</FONT></P>
<P> </P>
<p><font size=2 face="serif"> When issued and outstanding, the APS will add further leverage to an investment in the Fund&#146;s common stock. The Fund currently has 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 face="serif">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 , 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 60 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> </p>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=1 face="sans-serif">ii</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=30% align=left><B><FONT size=2 face="sans-serif">TABLE OF CONTENTS</FONT></B>&nbsp;
</TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=6>
<HR noshade size=1>
        </TD>
</TR></TABLE>
<p> </p>
 <TABLE width="100%">
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Prospectus summary</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">1</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Certain provisions in the charter and</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Financial highlights</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">10</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp;bylaws and certain provisions of</FONT>&nbsp;
      </div></TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">The Fund</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">12</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Maryland law</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">49</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Use of proceeds</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">12</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Repurchase of common stock</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">53</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Capitalization (unaudited)</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">13</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">U.S. federal income tax matters</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">53</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Portfolio composition</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">13</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Underwriting</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">58</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">The Fund&#146;s investments</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">14</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Custodian, transfer agent and</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Risks</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">21</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">auction agent</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">58</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">28</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Legal opinions</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">58</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Description of APS</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">32</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Available information</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">59</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">The auction</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">41</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Privacy principles of the Fund</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">59</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>
<FONT size=2 face="serif">Description of capital structure</FONT>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">48</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
<FONT size=2 face="serif">Table of contents for the Statement of</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=30% align=left>&nbsp;

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=37% align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=2% align=right>
<B><FONT size=2 face="sans-serif">60</FONT></B>&nbsp;
        </TD>
</TR>
</TABLE>
<p> </p>
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<P align="right">
<B><FONT size=1 face="sans-serif">iii</FONT></B></P>

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<P align="center">
<FONT size=2 face="serif">[This Page Intentionally Left Blank]</FONT></P>

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<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Prospectus summary</FONT><BR>
</TD></TR></TABLE>
<P>
<I><FONT size=2 face="serif">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. </FONT></I></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">THE FUND</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">THE OFFERING</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">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 TH (the &#147;Series TH APS&#148;), each at a purchase price of &#36;25,000 per share. The APS is being offered by UBS Securities LLC (the &#147;Underwriter&#148;). See &#147;Underwriting.&#148;</font></p>
<p> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INVESTMENT OBJECTIVES AND POLICIES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INVESTMENT TECHNIQUES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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">
<B><FONT size=2 face="sans-serif">1</FONT></B></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">USE OF LEVERAGE</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">The Fund&#146;s leverage consists of five series of outstanding RPS with an aggregate liquidation preference of &#36;500 million and three series of Existing APS with an aggregate liquidation preference of &#36;300 million. The issuance of &#36;200 million of APS in this offering will increase the Fund&#146;s total leverage to &#36;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. 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 face="serif">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 June 1, 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> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INTEREST RATE TRANSACTIONS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">INVESTMENT ADVISER AND ADMINISTRATOR </FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">2</FONT></B></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<FONT size=2 face="serif">inception in 1987. As of March 31, 2006, the Adviser managed approximately &#36;6.6 billion in assets, including approximately &#36;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 face="serif">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 face="serif">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 &#36;1.5 billion and 0.50% of average weekly net assets in excess
of &#36;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 &#36;100 million, 0.20% of the average weekly net assets from &#36;100
million to &#36;1.0 billion and 0.10% of the average weekly net assets over &#36;1.0 billion. </FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RISKS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE APS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<B><FONT size=2 face="sans-serif">Auction risk. </FONT></B><FONT size=2 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Secondary market risk. </font></b><font size=2 face="serif">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 &#36;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 NAS-DAQ 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><b><font size=2 face="sans-serif">Ratings and asset coverage risk. </font></b><font size=2 face="serif">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 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> </p>
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<B><FONT size=2 face="sans-serif">3</FONT></B></P>

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<P> </P>
<p> <b><font size=2 face="sans-serif">Subordination risk. </font></b><font size=2 face="serif">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 &#36;500 million and three series of Existing APS with an aggregate liquidation preference of &#36;300 million. Holders of APS will have equal liquidation and distribution rights to the holders of the Existing APS and the RPS. As of June 1, 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 would 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>
<B><FONT size=2 face="sans-serif">Restrictions on dividends and other distributions. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Interest rate risk. </FONT></B><FONT size=2 face="serif">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> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE FUND</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <b><font size=2 face="sans-serif">Investment and market risk. </font></b><font size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Income risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Management risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Leverage risk. </FONT></B><FONT size=2 face="serif">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</FONT></P><p> </p>
<P>
<B><FONT size=2 face="sans-serif">4</FONT></B></P>

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<P>
<FONT size=2 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Utilities industry risk. </font></b><font size=2 face="serif">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> </p>
<P>
<FONT size=2 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Investments in securities of foreign issuers. </font></b><font size=2 face="serif">Although 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> </p>
<P>
<FONT size=2 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Common stock risk. </font></b><font size=2 face="serif">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 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>
<B><FONT size=2 face="sans-serif">Small and mid cap stock risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Preferred stock risk. </FONT></B><FONT size=2 face="serif">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</FONT></P><p> </p>
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<B><FONT size=2 face="sans-serif">5</FONT></B></P>

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<P>
<FONT size=2 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Issuer risk. </font></b><font size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Debt securities risk. </FONT></B><FONT size=2 face="serif">In addition to credit risk, investment in debt securities carries certain risks, including:</FONT></P><p> </p>
<UL>
<LI>
<I><FONT size=2 face="serif">Redemption risk </FONT></I><FONT size=2 face="serif">&#151; Debt securities sometimes contain provisions that allow for redemption in the</FONT> <FONT size=2 face="serif">event of tax or security law changes in addition
to call features at the option of the issuer. In the</FONT> <FONT size=2 face="serif">event of a redemption, the Fund may not be able to reinvest the proceeds at comparable rates of</FONT> <FONT size=2 face="serif">return.</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Limited voting rights </FONT></I><FONT size=2 face="serif">&#151; Debt securities typically do not provide any voting rights, except in cases</FONT> <FONT size=2 face="serif">when interest payments have not been made and
the issuer is in default.</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Liquidity </FONT></I><FONT size=2 face="serif">&#151; Certain debt securities may be substantially less liquid than many other securities,</FONT> <FONT size=2 face="serif">such as U.S. government securities or common
stocks.</FONT></LI>
</UL>
<P> </P>
<p> <b><font size=2 face="sans-serif">Credit risk. </font></b><font size=2 face="serif">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 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>
<B><FONT size=2 face="sans-serif">Hedging strategy risk. </FONT></B><FONT size=2 face="serif">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</FONT></P><p> </p>
<P>
<B><FONT size=2 face="sans-serif">6</FONT></B></P>

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<P>
<FONT size=2 face="serif">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 face="serif">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> </P>
<p> <b><font size=2 face="sans-serif">Derivatives risk. </font></b><font size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Dividend capture risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Portfolio turnover risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Inflation risk. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Tax risk. </FONT></B><FONT size=2 face="serif">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 cor-</FONT></P>
<p> </p><P align="right">
<B><FONT size=2 face="sans-serif">7</FONT></B></P>

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<P>
<FONT size=2 face="serif">porate-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> </P>
<p> <b><font size=2 face="sans-serif">Market disruption risk. </font></b><font size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Anti-takeover provisions. </FONT></B><FONT size=2 face="serif">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> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">TRADING MARKET</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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-current dividend period is a special dividend period or the first
day of the subsequent dividend period is not a business day. </FONT></P><p> </p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=42% align=left>&nbsp;

        </TD>
        <TD width=21%>&nbsp;
        </TD>
        <TD width=12% colspan=3 align=right>
<B><FONT size=1 face="sans-serif">Initial auction</FONT></B>&nbsp;
        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=10% align=right>
<B><FONT size=1 face="sans-serif">Subsequent</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left>
<B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=21%>&nbsp;
        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=right>
<B><FONT size=1 face="sans-serif">date</FONT></B>&nbsp;
        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=10% align=right>
<B><FONT size=1 face="sans-serif">auction day</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left>
<FONT size=2 face="serif">Series T</FONT>&nbsp;
        </TD>
        <TD width=21%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">,</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=right>
<FONT size=2 face="serif">2006</FONT>&nbsp;
        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">Tuesday</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left>
<FONT size=2 face="serif">Series TH</FONT>&nbsp;
        </TD>
        <TD width=21%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">,</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=right>
<FONT size=2 face="serif">2006</FONT>&nbsp;
        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">Thursday</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=42% align=left>&nbsp;

        </TD>
        <TD width=21%>&nbsp;
        </TD>
        <TD width=6% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
</TR>
</TABLE><p> </p><P><B><FONT size=2 face="sans-serif">DIVIDENDS AND DIVIDEND PERIODS</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 subsequent 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 face="serif">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>
<P>
<B><FONT size=2 face="sans-serif">8</FONT></B></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<p> </p


><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">Number of</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">days of</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Initial</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">Date of</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">Dividend payment</FONT></B>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">Subsequent</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">initial</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">dividend</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">accumulation</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">date for initial</FONT></B>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">dividend</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">rate</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">at initial rate</FONT></B>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">dividend period</FONT></B>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=right>
<B><FONT size=1 face="sans-serif">payment day</FONT></B>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">period</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=11>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series T</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">Wednesday</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series TH</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
        <TD width=9%>&nbsp;
        </TD>
        <TD width=11% align=right>
<FONT size=2 face="serif">Friday</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
</TR>
</TABLE><p> </p>
<P>
<B><FONT size=2 face="sans-serif">TAXATION</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">REDEMPTION</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">LIQUIDATION PREFERENCE</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The liquidation preference of the APS will be &#36;25,000 per share, plus an amount equal to accumulated but unpaid dividends. See &#147;Description of APS&#151;Liquidation.&#148;</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RATINGS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">VOTING RIGHTS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">U.S. FEDERAL INCOME TAX STATUS OF THE FUND</FONT></B></P>
<P>
<FONT size=2 face="serif">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 align="right">
<B><FONT size=2 face="sans-serif">9</FONT></B></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Financial highlights </FONT><BR>
<B><FONT size=2 face="sans-serif">SELECTED PER SHARE DATA AND RATIOS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD colspan=10 align=right>
      <center>
        <B><FONT size=1 face="sans-serif">For the Year Ended December 31,</FONT></B>
          </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD nowrap>
        </TD>
        <TD colspan=30>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2005</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2004</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2003</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2002</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2001</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">2000</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1999</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1998</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1997</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="sans-serif">1996</FONT></B>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=31 nowrap>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Net asset value:</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">Beginning of year</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.44</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD nowrap>
        </TD>
        <TD colspan=30>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Net investment income(1)(2)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.41</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.54</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.79</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.89</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.88</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.85</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.84</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Net realized and unrealized</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">gain (loss) on investments</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.14</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.62</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.23</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.76</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.59</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.46</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.41</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Dividends on preferred stock from</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT size=1 face="serif">net investment income(1)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.08</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.11</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.10</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD nowrap>
        </TD>
        <TD colspan=30>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Total from investment operations</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
 <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">applicable to common stock</FONT>&nbsp;
        </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.55</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.60</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(1.03</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.54</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.53</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.80</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.24</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.21</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">0.33</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Dividends on common stock</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
          <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">from and in excess of net</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">investment income</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.80</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.74</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD nowrap>
        </TD>
        <TD colspan=30>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Return of capital</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.04</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Total distributions</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.80</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.78</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.75</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(0.74</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Net asset value</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">End of year</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.75</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7.94</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">7.37</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.18</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.51</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.77</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.36</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.44</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD nowrap>
        </TD>
        <TD colspan=30>
<HR noshade size=2>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Per share market value</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">End of year</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.39</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11.92</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.96</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.90</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11.06</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.50</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.31</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">11.25</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;</FONT>
        </TD>
        <TD align=right>
<FONT size=1 face="serif">10.13</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
 &nbsp;<FONT size=1 face="serif">&#36;</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.63</FONT>
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Ratio of expenses to average</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
          <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">net assets applicable to</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">common stock(1)</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">2.24</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.86</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.89</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.44</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.57</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.66</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.46</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.45</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">1.53</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Ratio of net investment income to</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
          <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">average net assets applicable</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
          <div align="left"> &nbsp; &nbsp;<FONT size=1 face="serif">to common stock(1)(2)</FONT>&nbsp;
          </div></TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4.51</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">5.63</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.88</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.63</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.63</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.73</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.40</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">8.85</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">9.87</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">7.79</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT size=1 face="serif">Total investment return on</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
 &nbsp; &nbsp;<FONT size=1 face="serif">market value</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(6.16</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">17.35</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">19.82</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(3.04</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">13.67</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">37.37</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">(19.85</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">)%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">19.95</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD align=right>
<FONT size=1 face="serif">27.69</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=1 face="serif">4.68</FONT>
        </TD>
        <TD align=left>
<FONT size=1 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap> <FONT size=1 face="serif">Portfolio turnover rate (2)</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">21.99</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">43.71</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">242.69</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">197.27</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD>&nbsp; </TD>
  <TD align=right> <FONT size=1 face="serif">213.48</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">229.70</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">223.78</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">251.19</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left> </TD>
  <TD align=right> <FONT size=1 face="serif">213.57</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
  <TD align=left>&nbsp; </TD>
  <TD align=right> <FONT size=1 face="serif">226.21</FONT> </TD>
  <TD align=left> <FONT size=1 face="serif">%</FONT>&nbsp; </TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap> <FONT size=1 face="serif">Net assets applicable to</FONT>&nbsp; </TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD height="20" align=left nowrap> &nbsp; &nbsp;<FONT size=1 face="serif">common stock, end of year</FONT>&nbsp; </TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left nowrap> &nbsp; &nbsp;&nbsp;<FONT size=1 face="serif">(000s omitted)</FONT>&nbsp; </TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,904,206 </FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,935,437</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,738,286 </FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,592,970</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,959,697</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;2,216,014</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,828,128 </FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;2,131,692</FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left></TD>
  <TD align=right><FONT size=1 face="serif">&#36;2,010,035 </FONT></TD>
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=right><FONT size=1 face="serif">&#36;1,686,443</FONT></TD>
  <TD align=left>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<HR align="left"  width="72" size=1 noshade>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR valign="top">
        <TD width="41" nowrap>
<FONT size=1 face="serif">(1)</FONT> </TD>
        <TD width="852">
<FONT size=1 face="serif">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 &#36;0.47 and &#36;0.06, respectively in 2005, &#36;0.58 and &#36;0.03, respectively in 2004 and &#36;0.78 and &#36;0.03, respectively in 2003.</FONT></TD>
</TR>
<TR valign="top"><TD colspan=2>&nbsp;</TD>
</TR><TR valign="top">
        <TD nowrap>
<FONT size=1 face="serif">(2)</FONT> </TD>
        <TD>
<FONT size=1 face="serif">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></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>&nbsp;</P>


<P><B><FONT size=2 face="sans-serif">10</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="sans-serif">INFORMATION REGARDING SENIOR SECURITIES</FONT></B></P>
<P> </P>
<p> <font size=2 face="serif">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 June 1, 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>
<p> </p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">CP Notes</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">RPS</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">Average Market</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Asset Coverage</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">Liquidation</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">Value</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">per &#36;1,000 of</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">Preference</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=left><div align="right"><B><FONT size=1 face="sans-serif">Asset</FONT></B>

        </div></TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Aggregate</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">per &#36;100,000 of</FONT></B>&nbsp;
        </TD>
        <TD width=2% align=left>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Principal</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Aggregate</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">and Average</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif"> Coverage</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">Principal</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Amount (2)</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Amount</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">Market Value</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">per Share (4)</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<B><FONT size=1 face="sans-serif">Amount (1)</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">Outstanding</FONT></B>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<B><FONT size=1 face="sans-serif">per Share (3)</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<B><FONT size=1 face="sans-serif">(unaudited)</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2005</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">&#36;197,255,382</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">&#36;100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">&#36;13,188</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">&#36;500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">&#36;100,000</FONT>&nbsp;&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">&#36;504,983</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2004</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">198,361,375</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">13,278</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">487,087</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2003</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">198,974,940</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">12,249</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">447,657</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2002</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">197,955,439</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">11,573</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">418,594</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2001</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">196,827,285</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">13,497</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">491,939</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 2000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">193,187,392</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">15,059</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">543,203</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 1999</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">193,842,781</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">13,010</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">465,626</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 1998</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">171,002,097</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">16,390</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">526,338</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 1997</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">98,441,884</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">26,498</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">502,007</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=1 face="serif">December 31, 1996</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">98,360,808</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=8% align=right>
<FONT size=1 face="serif">100,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">23,229</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">500,000,000</FONT>&nbsp;
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=6% align=center>
<FONT size=1 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=1 face="serif">437,289</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<HR align="left"  width="72" size=1 noshade>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD width="29" valign=top nowrap>
<FONT size=1 face="serif">(1)</FONT> </TD>
        <TD width="864">
<FONT size=1 face="serif">Average market value is calculated as the face value of the CP Notes.</FONT>  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">(2)</FONT> </TD>
        <TD>
<FONT size=1 face="serif">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 &#36;1,000 of CP Notes.</FONT>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">(3)</FONT>    </TD>
        <TD>
<FONT size=1 face="serif">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>       </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=1 face="serif">(4)</FONT>    </TD>
        <TD>
<FONT size=1 face="serif">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>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="right">&nbsp;</P>


<P align="right"><B><FONT size=2 face="sans-serif">11</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<HR align="left"  width="100%" size=1 noshade>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">The Fund</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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> </P>
<p> <font size=2 face="serif">The following table provides information about the Fund&#146;s outstanding stock as of May 31, 2006.</font></p>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">Number of shares</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">Number of shares</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">held by the Fund</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">Number of shares</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=left>
<B><FONT size=1 face="sans-serif">Title of class</FONT></B>&nbsp;
        </TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">authorized</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">or for its account</FONT></B>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<B><FONT size=1 face="sans-serif">outstanding</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">Common Stock</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">250,000,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">224,965,223</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">Preferred Stock</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">100,000,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">5,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series A RPS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series B RPS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series C RPS</FONT>&nbsp;
        <FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;</FONT>        </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series D RPS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series E RPS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">1,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series M APS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series W APS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Series F APS</FONT>&nbsp;
          </div></TD>
        <TD width=25%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">0</FONT>&nbsp;
        </TD>
        <TD width=6%>&nbsp;
        </TD>
        <TD width=15% align=right>
<FONT size=2 face="serif">4,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<p> </p><BR>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Use of proceeds</FONT><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">The net proceeds of this offering will be approximately &#36;197,847,600 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>
<p> </p>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">12</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<HR noshade size=1>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Capitalization (unaudited)</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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
&#36;2,152,400):</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=53% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<B><FONT size=1 face="sans-serif">Actual</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<B><FONT size=1 face="sans-serif">As adjusted</FONT></B>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=11>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
      <div align="left"><FONT size=2 face="serif">Preferred stock, &#36;0.001 par value, 100,000,000 shares</FONT>&nbsp;
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
 <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;authorized</FONT>&nbsp;
    </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=center valign="top">
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Auction preferred stock, &#36;25,000 stated value per share,</FONT>&nbsp;
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
 <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;at liquidation value, 12,000 shares issued and</FONT>&nbsp;
    </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=center valign="top">
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;outstanding, and 20,000 shares issued and outstanding,</FONT>&nbsp;
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
  <FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;as adjusted</FONT>&nbsp;    </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">300,000,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">500,000,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD valign="top">
          <div align="left"></div></TD>
        <TD>
        </TD>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=center valign="top">
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;Remarketed preferred stock, &#36;100,000 stated value per share,</FONT>&nbsp;
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
 <FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;at liquidation value, 5,000 shares issued and</FONT>&nbsp;    </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left valign="top">
 <FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp;outstanding</FONT>&nbsp;    </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">500,000,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">500,000,000</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<B><FONT size=2 face="serif">Shareholders&#146; equity:</FONT></B>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Common stock, &#36;0.001 par value, 250,000,000 shares</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp;authorized, 224,505,404 shares issued and outstanding(1)</FONT>&nbsp;
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">224,505</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">224,505</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Paid-in surplus</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">1,897,384,642</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">1,895,232,242</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Accumulated net realized loss on investments</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">(173,617,078</FONT>
        </TD>
        <TD width=2% align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">(173,617,078</FONT>
        </TD>
        <TD width=2% align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Distributions in excess of book net investment income</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">(55,232,685</FONT>
        </TD>
        <TD width=2% align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">(55,232,685</FONT>
        </TD>
        <TD width=2% align=left>
<FONT size=2 face="serif">)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Net unrealized appreciation (depreciation) on</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">investments and foreign currency translation</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<SUP><FONT face="serif">248,517,165</FONT></SUP>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">248,517,165</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=2 face="serif">Net assets applicable to common stock</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
      <div align="left"><FONT size=2 face="serif">&#36;</FONT>
          </div></TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">1,917,276,549</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=right>
<FONT size=2 face="serif">1,915,124,149</FONT>
        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=9>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=53% align=left>
<FONT size=1 face="serif">(1) None of these outstanding shares are held by or for the account of the Fund.</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=2% align=left>

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=14% align=left>

        </TD>
        <TD width=2% align=left>&nbsp;

        </TD>
</TR>
</TABLE>
<BR>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Portfolio composition</FONT><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">As of May 31, 2006, approximately 76% of the market value of the Fund&#146;s portfolio, exclusive of short-term instruments, was invested in equity securities and approximately 24% was invested in other securities. The following table sets forth certain information with respect to the composition as of May 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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center width=11%>&nbsp;
</TD>
        <TD align=center width=5%>&nbsp;</TD>
        <TD align=center width=9%>&nbsp;</TD>
        <TD align=center width=19%>&nbsp;</TD>
        <TD align=center width=9%><div align="right"><b><font size=1 face="sans-serif">Number of</font></b> </div></TD>
        <TD align=center width=8%>&nbsp;</TD>
        <TD align=center width=3%>&nbsp;</TD>
        <TD align=center width=2%>&nbsp;</TD>
        <TD align=center width=12%>&nbsp;</TD>
        <TD align=center width=10%>&nbsp;</TD>
        <TD align=center width=9%>&nbsp;</TD>
        <TD align=center width=3%>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<B><FONT size=1 face="sans-serif">S&amp;P(1)</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
<B><FONT size=1 face="sans-serif">Moody&#146;s(1)</FONT></B>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
          <div align="right"><B><FONT size=1 face="sans-serif">issues</FONT></B>
          </div></TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<B><FONT size=1 face="sans-serif">Value</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<B><FONT size=1 face="sans-serif">Percentage</FONT></B>
        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=12>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=right>&nbsp;
        </TD>
        <TD width=2%><div align="right"><font size=2 face="serif">&#36;</font>
        </div></TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">50,008,025</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">7.6</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">AA</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">Aa</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">0.0</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">A</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">19</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">259,949,731</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">39.4</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">BBB</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">Baa</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">23</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">329,475,656</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">49.9</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">BB</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">Ba</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">21,160,344</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">3.2</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>
<FONT size=2 face="serif">Unrated</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>
 &nbsp;<FONT size=2 face="serif">Unrated</FONT>&nbsp;
        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">0.0</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=3>
        </TD>
        <TD>
        </TD>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=19%>&nbsp;
        </TD>
        <TD width=9% align=center>
<FONT size=2 face="serif">45</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=3% align=left>

        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=12% align=right>
<FONT size=2 face="serif">660,593,756</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=9% align=right>
<FONT size=2 face="serif">100.0</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>&nbsp;
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=8>
<HR noshade size=1>
        </TD>
</TR>
</TABLE>
<p> </p>
<HR align="left" width="72" size=1 noshade>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD width="33" valign=top nowrap>
<FONT size=1 face="serif">(1)</FONT>    </TD>
        <TD width="814">
<FONT size=1 face="serif">S&amp;P rating categories may be modified further by a plus (+) or minus (-) in the case of AA, A, BBB and BB ratings. 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> </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">13</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<HR noshade size=1>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">The Fund&#146;s investments</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INVESTMENT OBJECTIVES AND POLICIES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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. 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.</FONT></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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>
<P>
<B><FONT size=2 face="sans-serif">14</FONT></B></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B><BR>
</TD></TR></TABLE>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">PORTFOLIO CONTENTS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The Fund&#146;s portfolio is composed principally of the following types of equity and fixed-income securities.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Common stocks</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Preferred stocks</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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>
<P align="right">&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">15</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Corporate bonds and other debt securities</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Convertible securities and bonds with warrants attached</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<B><FONT size=2 face="sans-serif">Real estate investment trusts</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B><BR>
</TD></TR></TABLE>
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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INVESTMENT TECHNIQUES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Lending of portfolio securities</FONT></B></P>
<P>
<FONT size=2 face="serif">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</FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 3 </SUB></FONT><FONT
size=2 face="serif">% 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 &#36;748,244,064 to a broker-dealer and
received &#36;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>
<B><FONT size=2 face="sans-serif">Dividend capture trading</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">When-issued and delayed delivery transactions</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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</TD></TR></TABLE>
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<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Temporary investments</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Portfolio turnover</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">USE OF LEVERAGE</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">As of June 1, 2006, the Fund&#146;s leverage consists of five series of outstanding RPS with an aggregate liquidation preference of &#36;500 million and three series of Existing APS with an aggregate liquidation preference of &#36;300 million. The issuance of &#36;200 million of APS in this offering will increase the Fund&#146;s total leverage to &#36;1 billion. As of June 1, 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> </p>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B><BR>
</TD></TR></TABLE>
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<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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</FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 3 </SUB></FONT><FONT size=2 face="serif">% 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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INTEREST RATE TRANSACTIONS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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</TD></TR></TABLE>
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<P>
<FONT size=2 face="serif">cured obligations of the Fund and are ranked senior to distributions under the common stock and preferred stock.</FONT></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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>
<P>&nbsp;</P>

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<B><FONT size=2 face="sans-serif">The Fund&#146;s investments</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Risks</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE APS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<B><FONT size=2 face="sans-serif">Auction risk</FONT></B></P>

<P>
<font size="2" face="serif">The dividend rate for the APS normally is set through an auction process involving one or more Broker-Dealers. 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. Additionally, 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. Finally, because a Broker-Dealer is permitted to submit orders in an auction for its own account, a Broker-Dealer may have an advantage over other bidders in the
auction because of its knowledge of the other orders placed through it.  This knowledge may allow the Broker-Dealer to structure its bid in a manner that increases the likelihood that its bid will be accepted at auction.  Bids by a Broker-Dealer may also adversely affect the applicable dividend rate and the allocation of shares at an auction. See &#147;Description of APS,&#148; &#147;The Auction&#151;Auction procedures&#148; and &#147;The Auction-Broker-Dealer Agreements.&#148;
</font>
<P>
<P>
<B><FONT size=2 face="sans-serif">Secondary market risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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 &#36;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>
<B><FONT size=2 face="sans-serif">Ratings and asset coverage risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<P>
<B><FONT size=2 face="sans-serif">Risks</FONT></B></P>
<HR noshade size=1>
<P>
<B><FONT size=2 face="sans-serif">Subordination risk</FONT></B></P>
<P> </P>
<p> <font size=2 face="serif">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 &#36;500 million and three series of Existing APS with an aggregate liquidation preference of &#36;300 million. Holders of APS will have equal liquidation and distribution rights to the holders of the Existing APS and the RPS. As of June 1, 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> </p>
<P>
<B><FONT size=2 face="sans-serif">Restrictions on dividends and other distributions</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Interest rate risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">RISKS OF INVESTING IN THE FUND</FONT></B><BR>
</TD></TR></TABLE>
<P>
<B><FONT size=2 face="sans-serif">Investment and market risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Income risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<B><FONT size=2 face="sans-serif">Risks</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Management risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Leverage risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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>
<B><FONT size=2 face="sans-serif">Utilities industry risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<B><FONT size=2 face="sans-serif">Risks</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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. 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> </P>
<p> <font size=2 face="serif">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 face="serif">Regulatory changes in certain states have led to greater competition in the indutsry and the emergence of non-regulated providers as a significant part of the industry. While regulated providers tend to have regulated returns, non-regulated providers&#146; returns are not regulated and generally are more volatile. These developments have reduced stability of cash flows in those states with non-regulated providers and could impact the short-term earnings potential of some in the industry.</font></p>
<p> </p>
<P>
<B><FONT size=2 face="sans-serif">Investments in securities of foreign issuers</FONT></B></P>
<P>
<FONT size=2 face="serif">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>&nbsp;</P>

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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Risks</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Common stock risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Small and mid cap stock risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Preferred stock risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Issuer risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>&nbsp;</P>

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<P>
<B><FONT size=2 face="sans-serif">Risks</FONT></B></P>
<HR noshade size=1>
<P>
<B><FONT size=2 face="sans-serif">Debt securities risk</FONT></B></P>
<P>
<FONT size=2 face="serif">In addition to credit risk, investment in debt securities carries certain risks, including:</FONT></P>
<UL>
<LI>
<I><FONT size=2 face="serif">Redemption risk </FONT></I><FONT size=2 face="serif">&#151; Debt securities sometimes contain provisions that allow for redemption</FONT> <FONT size=2 face="serif">in the event of tax or security law changes in addition
to call features at the option of the</FONT> <FONT size=2 face="serif">issuer. In the event of a redemption, the Fund may not be able to reinvest the proceeds at</FONT> <FONT size=2 face="serif">comparable rates of return.</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Limited voting rights </FONT></I><FONT size=2 face="serif">&#151; Debt securities typically have limited voting rights, except in cases</FONT> <FONT size=2 face="serif">when interest payments have not been made and the
issuer is in default.</FONT></LI>
<LI>
<I><FONT size=2 face="serif">Liquidity </FONT></I><FONT size=2 face="serif">&#151; Certain debt securities may be substantially less liquid than many other securities, such as U.S. government securities or common
stocks.</FONT></LI>
</UL>
<P>
<B><FONT size=2 face="sans-serif">Credit risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Hedging strategy risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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</FONT></P>
<P>&nbsp;</P>

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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Risks</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Derivatives risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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 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.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Dividend capture risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Portfolio turnover risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Inflation risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Tax risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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>&nbsp;</P>

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<P>
<B><FONT size=2 face="sans-serif">Risks</FONT></B></P>
<HR noshade size=1>
<P>
<B><FONT size=2 face="sans-serif">Market disruption risk</FONT></B></P>
<P>
<FONT size=2 face="serif">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 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>
<B><FONT size=2 face="sans-serif">Anti-takeover provisions</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Management of the Fund</FONT><BR>
<B><FONT size=2 face="sans-serif">BOARD OF DIRECTORS AND OFFICERS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">INVESTMENT ADVISER</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 &#36;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 face="serif">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 face="serif">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 &#36;1.5 billion and 0.50% of average weekly net assets in excess of &#36;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 &#36;14,771,365 in 2005, &#36;13,869,531 in 2004 and &#36;13,069,523 in
2003. A discussion regarding the basis for the directors&#146; approving the</FONT></P>
<P>&nbsp;</P>

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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Management of the Fund</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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). 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 responsibility, 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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">PORTFOLIO MANAGEMENT</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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> </P><P>
<FONT size=2 face="serif">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. Mr. Partain has final investment authority with respect to the Fund&#146;s entire investment
portfolio. 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 face="serif">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 and has investment authority with respect to the Fund&#146;s fixed-income portfolio. 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 face="serif">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 has investment authority with respect to the
Fund&#146;s REIT portfolio. He is also 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> </P><P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">29</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Management of the Fund</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P> </P>
<p> <font size=2 face="serif">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 and makes recommendations to Mr. Partain with regard to equity investments in those 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 face="serif">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 and makes recommendations to Mr. Partain with regard to equity investments in those industries. She joined the Duff &amp; Phelps
organization in 1992 and has served since then in positions of increasing responsibility.</FONT></P>
<P>
<FONT size=2 face="serif">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). Mr. Petrisko assists Mr. Beittel with respect to the management of the Fund&#146;s fixed-income
portfolio. 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 face="serif">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 and makes
recommendations to Mr. Partain with regard to equity investments in those industries. He joined the Duff &amp; Phelps organization in 1990 and has served since then in positions of increasing responsibility.</FONT></P>
<p> </p><P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">ADMINISTRATOR</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 &#36;100 million, 0.20% of the Fund&#146;s average weekly net assets from &#36;100 million to &#36;1.0 billion and 0.10% of average weekly net assets over &#36;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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">EXPENSES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The Fund is responsible for all expenses not paid by the Adviser or the Administrator, including brokerage fees.</FONT></P>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">30</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>



<p>&nbsp;</p>
<p> </p>
<p><b><font size=2 face="sans-serif">Management of the Fund</font></b></p>
<p> </p>
<hr noshade size=1>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">CONTROL PERSONS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<P align="right">
<B><FONT size=2 face="sans-serif">31</FONT></B></P>
<hr noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<p> </p>

<hr noshade size=1>


<p> </p>



<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Description of APS</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">GENERAL</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 </FONT><FONT size=1
face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2 face="serif">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. 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 face="serif">The APS offered by this Prospectus will rank on a parity with the Existing APS and the RPS.</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">DIVIDENDS AND DIVIDEND PERIODS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<P> </P>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=9% align=left>
<B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=65%>&nbsp;    </TD>
        <TD width=24% colspan=4 align=right>
<B><FONT size=1 face="sans-serif">Initial dividend period</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=6>&nbsp;    </TD>
</TR>
<TR>
        <TD colspan=6><hr noshade size=1>

        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series T</FONT>&nbsp;
        </TD>
        <TD width=65%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">, 2006</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">&#150;</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series TH</FONT>&nbsp;
        </TD>
        <TD width=65%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">, 2006</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">&#150;</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">, 2006</FONT>&nbsp;
        </TD>
</TR>
</TABLE><p> </p><BR>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Dividend payment dates</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<p> </p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=9% align=left>&nbsp;

        </TD>
        <TD width=17%>&nbsp;
        </TD>
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=29%>&nbsp;
        </TD>
        <TD width=18% align=right>
<B><FONT size=1 face="sans-serif">Subsequent dividend</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<B><FONT size=1 face="sans-serif">Series</FONT></B>&nbsp;
        </TD>
        <TD width=17%>&nbsp;
        </TD>
        <TD width=25% colspan=3 align=right>
<B><FONT size=1 face="sans-serif">Initial dividend payment date</FONT></B>&nbsp;
        </TD>
        <TD width=29%>&nbsp;
        </TD>
        <TD width=18% align=right>
<B><FONT size=1 face="sans-serif">payment day</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>
<HR noshade size=1>
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series T</FONT>&nbsp;
        </TD>
        <TD width=17%>&nbsp;
        </TD>
        <TD width=19% align=right>
<FONT size=2 face="serif">,</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=right>
<FONT size=2 face="serif">2006</FONT>&nbsp;
        </TD>
        <TD width=29%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Wednesday</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=9% align=left>
<FONT size=2 face="serif">Series TH</FONT>&nbsp;
        </TD>
        <TD width=17%>&nbsp;
        </TD>
        <TD width=19% align=right>
<FONT size=2 face="serif">,</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=right>
<FONT size=2 face="serif">2006</FONT>&nbsp;
        </TD>
        <TD width=29%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Friday</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<p> </p>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">32</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Calculation of dividend payment</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 &#36;25,000 to arrive at dividends per share.</FONT></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>&nbsp;

        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=center>
<B><FONT size=1 face="sans-serif">Applicable percentage</FONT></B>
        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=left>&nbsp;

        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=13% colspan=5 align=center>
<B><FONT size=1 face="sans-serif">Moody&#146;s</FONT></B>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=13% colspan=3 align=center>
<B><FONT size=1 face="sans-serif">S&amp;P</FONT></B>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=center>
<B><FONT size=1 face="sans-serif">of the reference rate</FONT></B>
        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=14% colspan=3 align=right>
<B><FONT size=1 face="sans-serif">Applicable spread</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=16>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=13% colspan=5 align=center>
<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=13% colspan=3 align=center>
<FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=right>
          <center>
            <FONT size=2 face="serif">125%</FONT>
          </center></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">125</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=right>
      <div align="left"><FONT size=2 face="serif">bps</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD width=5% align=right>
<FONT size=2 face="serif">Aa3</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=right>
<FONT size=2 face="serif">to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">Aa1</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">AA- to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">AA+</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=right>
          <center>
            <FONT size=2 face="serif">150</FONT><FONT size=2 face="serif">%</FONT>
          </center></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">150</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=right>
      <div align="left"><FONT size=2 face="serif">bps</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD width=5% align=right>
<FONT size=2 face="serif">A3</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=right>
<FONT size=2 face="serif">to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">A1</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">A- to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">A+</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=right>
          <center>
            <FONT size=2 face="serif">200</FONT><FONT size=2 face="serif">%</FONT>
          </center></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">200</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=right>
      <div align="left"><FONT size=2 face="serif">bps</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD width=5% align=right>
<FONT size=2 face="serif">Baa3</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=1% align=right>
<FONT size=2 face="serif">to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">Baa1</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=7% align=right>
<FONT size=2 face="serif">BBB- to</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=5% align=left>
<FONT size=2 face="serif">BBB+</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=right>
          <center>
            <FONT size=2 face="serif">250</FONT><FONT size=2 face="serif">%</FONT>
          </center></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">250</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=right>
      <div align="left"><FONT size=2 face="serif">bps</FONT>&nbsp;
          </div></TD>
</TR>
<TR valign="bottom">
        <TD width=13% colspan=5 align=left>
<FONT size=2 face="serif">Ba1 and lower</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=13% colspan=3 align=left>
<FONT size=2 face="serif">BB+ and lower</FONT>&nbsp;
        </TD>
        <TD width=10%>&nbsp;
        </TD>
        <TD width=18% align=right>
          <center>
            <FONT size=2 face="serif">300%</FONT>
          </center></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=10% align=right>
<FONT size=2 face="serif">300</FONT>&nbsp;
        </TD>
        <TD width=1%>&nbsp;
        </TD>
        <TD width=3% align=right>
      <div align="left"><FONT size=2 face="serif">bps</FONT>&nbsp;
          </div></TD>
</TR>
</TABLE>
<BR>
<P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">33</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B></P>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=10% align=left>

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Maximum dividend</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=left>

        </TD>
        <TD width=3% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <div align="right"><B><FONT size=1 face="sans-serif">rate using the</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">Maximum dividend rate</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<B><FONT size=1 face="sans-serif">Method used to</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=left>

        </TD>
        <TD width=7% align=left>&nbsp;

        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">applicable percentage</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">using the applicable spread</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<B><FONT size=1 face="sans-serif">determine the</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=center>
<B><FONT size=1 face="sans-serif">Reference rate</FONT></B>
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD colspan="2" align=center>
      <div align="right"><B><FONT size=1 face="sans-serif">of the reference rate</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD colspan="2" align=right>
      <div align="right"><B><FONT size=1 face="sans-serif">plus the reference rate</FONT></B>
          </div>      </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<B><FONT size=1 face="sans-serif">maximum dividend rate</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=10>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">1.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">2.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">2.50</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">3.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">3.75</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">4.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">5.00</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">5.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">6.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Either</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=10% align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD width=7% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=17% align=right>
<FONT size=2 face="serif">7.50</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=right>
<FONT size=2 face="serif">7.25</FONT>
        </TD>
        <TD width=3% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=18% align=right>
<FONT size=2 face="serif">Percentage</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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>
<B><FONT size=2 face="sans-serif">Effect of failure to pay dividends in a timely manner</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">Restrictions on dividends and other distributions</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">34</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<UL>
<LI>
<FONT size=2 face="serif">immediately after such transaction, the Discounted Value of the Fund&#146;s portfolio would be</FONT> <FONT size=2 face="serif">equal to or greater than the Preferred Stock Basic Maintenance Amount and the Investment</FONT>
<FONT size=2 face="serif">Company Act Preferred Stock Asset Coverage (see &#147;&#151;Rating agency guidelines and asset</FONT> <FONT size=2 face="serif">coverage&#148; below);</FONT></LI>
<LI>
<FONT size=2 face="serif">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</FONT>
<FONT size=2 face="serif">payment thereof deposited with the auction agent; and</FONT></LI>
<LI>
<FONT size=2 face="serif">the Fund has redeemed the full number of shares of APS required to be redeemed by any</FONT> <FONT size=2 face="serif">provision for mandatory redemption contained in the Articles Supplementary.</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">35</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Declaration of special dividend periods</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">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 UBS Securities LLC, must not have objected to the declaration of a special dividend period.</font></p>
<p> </p>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">36</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">REDEMPTION</FONT></B><BR>
</TD></TR></TABLE>
<P>
<B><FONT size=2 face="serif">Mandatory redemption. </FONT></B><FONT size=2 face="serif">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 &#36;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>
<B><FONT size=2 face="serif">Optional redemption. </FONT></B><FONT size=2 face="serif">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 &#36;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 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">LIQUIDATION</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">37</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">For purpose of the foregoing paragraph, a voluntary or involuntary liquidation of the Fund does not include:</FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">the sale of all or substantially all the property or business of the Fund;</FONT></LI>
<LI>
<FONT size=2 face="serif">the merger or consolidation of the Fund into or with any other business trust or corporation; or</FONT></LI>
<LI>
<FONT size=2 face="serif">the merger or consolidation of any other business trust or corporation into or with the Fund.</FONT>
<hr noshade size=1>
</LI>
</UL>
<P>
<B><FONT size=2 face="sans-serif">RATING AGENCY GUIDELINES AND ASSET COVERAGE</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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 &#36;2,152,400 in the aggregate, would have been
computed as follows:</FONT></P>
<P> </P>


<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT size=2 face="serif">Value of Fund assets less liabilities</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=4% align=left>

        </TD>
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT size=2 face="serif">not constituting senior securities</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=19% align=right>
<FONT size=2 face="serif">2,915,124,149</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
<TR valign="top">
        <TD width=50% align=center><HR align="center" width="232" size=1 noshade></TD>
        <TD width=1% align=right>
<FONT size=2 face="serif">=</FONT>&nbsp;
        </TD>
        <TD width=4% align=left>

        </TD>
        <TD width=19% align=right>
<FONT size=2 face="serif">&nbsp; </FONT>
<HR align="right" width="132" size=1 noshade>
        </TD>
        <TD width=1% align=right valign="top"> &nbsp;&nbsp;<FONT size=2 face="serif">=</FONT></TD>
        <TD width=7% align=right><FONT size=2 face="serif">292</FONT>
        </TD>
        <TD width=4% align=left>
<FONT size=2 face="serif">%</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT size=2 face="serif">Senior securities representing indebtedness</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">&#36;</FONT>
        </TD>
        <TD width=19% align=right>
<FONT size=2 face="serif">1,000,000,000</FONT>&nbsp;
        </TD>
        <TD width=1% align=left valign="top"><center>
          </center></TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=50% align=center>
<FONT size=2 face="serif">plus liquidation value of preferred stock</FONT>&nbsp;
        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=4% align=left>

        </TD>
        <TD width=19% align=left>&nbsp;

        </TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=7% align=left>

        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
</TABLE><p> </p>
<BR>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">38</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">VOTING RIGHTS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 </FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 4
</SUB></FONT><FONT size=2 face="serif">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 &#36;25,000, whereas each
share of RPS (which has one vote per share) represents a liquidation preference of &#36;100,000, the allocation of </FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2 face="serif">vote per share to the APS will give
all holders of preferred stock equal voting power per dollar of liquidation preference. 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 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>      </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>&nbsp;</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">39</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<p> </p><TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Description of APS</FONT></B><BR>
</TD></TR></TABLE>


<p> </p>
<HR noshade size=1>
<blockquote>
  <p>
    <FONT size=2 face="serif">Stock Basic Maintenance Amount requirements, in which case the vote or consent of the holders of the preferred stock is not required.</FONT></p>
</blockquote>
<P>
<FONT size=2 face="serif">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 face="serif">As defined in the 1940 Act, a reorganization includes:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">a reorganization under the supervision of a court of competent jurisdiction;</FONT>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">a merger or consolidation;</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">a sale of 75% or more in value of the assets of the Fund;</FONT>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(e)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">a voluntary dissolution or liquidation of the Fund;</FONT>    </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(f)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(g)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(h)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">any exchange of securities by a company which is not an investment company for securities issued by the Fund.</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; </TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">convert from a closed-end to an open-end investment company;</FONT>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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> </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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 identi- fied as fundamental in its registration statement; or</FONT> </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">change the nature of its business so as to cease to be an investment company.</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

<HR noshade size=1>
<P><B><FONT size=2 face="sans-serif">40</FONT></B></P>
<HR noshade  width="100%" size=4>

<p> </p>
<HR noshade size=1>
<p> </p>
<P align="left" style="page-break-before:always"></P>
<PAGE>


<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">The auction</FONT><BR>
<B><FONT size=2 face="sans-serif">GENERAL</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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> </P>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">AUCTION AGENCY AGREEMENT</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">The Fund has entered into an agency agreement (the &#147;Auction Agency Agreement&#148;) 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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">BROKER-DEALER AGREEMENTS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Each auction requires the participation of one or more Broker-Dealers. The auction agent will enter into agreements with several Broker-Dealers (&#147;Broker-Dealer Agreements&#148;) selected by the Fund, which provide for
the participation of those Broker-Dealers in auctions for APS.</FONT></P>
<P>
<FONT size=2 face="serif">Each Broker-Dealer is appointed on behalf of the Fund to serve as a dealer in the APS and is authorized in a Broker-Dealer Agreement to solicit bids for the APS from existing holders and potential holders. 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 </FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2 face="serif">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. A Broker-Dealer may share a portion of such fees with other Broker-Dealers that submit, through such Broker-Dealer, orders that are filled in the auction.</FONT></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Bidding by Broker-Dealers</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Each Broker-Dealer is permitted, but not obligated, to submit orders in auctions for its own account, either as a bidder or a seller, in its sole discretion. If a Broker-Dealer submits an order for its own account, it would
have an advantage over other bidders because such Broker-Dealer would have knowledge of some or all of the other orders placed through such Broker-Dealer in that auction. Therefore, a Broker-Dealer could determine the rate and size of its order to
increase the likelihood that its order will be accepted in the auction or that the auction will clear at a particular rate. For this reason, and because each Broker-Dealer is appointed and paid by the Fund to serve as a Broker-Dealer in the auction,
a Broker-Dealer&#146;s interests in conducting an auction may differ from those of existing holders and potential holders who participate in auctions. A Broker-Dealer would not have knowledge of orders submitted to the auction agent by any other
firm that is, or may in the future be, appointed to accept orders pursuant to a Broker-Dealer Agreement. </FONT></P>
<P>
<FONT size=2 face="serif">Each Broker-Dealer may routinely place one or more bids in an auction for its own account to acquire APS for its inventory, to seek to prevent an &#147;auction failure event&#148; (i.e., an event where there</FONT></P>
<p> </p><P>&nbsp;
</P>

<HR noshade size=1>
<P align="right"><B><FONT size=2 face="sans-serif">41</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade size=1><p> </p>
<P>
<FONT size=2 face="serif">are insufficient clearing bids, which would result in the applicable dividend rate being set at the maximum dividend rate) or to seek to prevent an auction from clearing at a rate that such Broker-Dealer believes does not
reflect the market for the APS. Each Broker-Dealer may place such bids even after obtaining knowledge of some or all of the other orders submitted through it. When bidding for its own account, each Broker-Dealer may bid inside the range of rates
that it posts in its &#147;price talk&#148; or outside that range if such Broker-Dealer believes that the fair market value of the APS is outside the range of rates that it posts in its &#147;price talk.&#148; See &#147;&#151;Price talk&#148;
below.</FONT></P>
<P>
<FONT size=2 face="serif">Bids by any Broker-Dealer are likely to affect (i) the applicable dividend rate, including preventing the applicable dividend rate from being set at the maximum dividend rate or otherwise causing bidders to receive a higher
or lower dividend rate than they might have received had such Broker-Dealer not bid, and (ii) the allocation of shares of APS being auctioned, including displacing some bidders who may have their bids rejected or who may receive fewer shares of APS
than they would have received if such Broker-Dealer had not bid. Because of these practices, the fact that an auction clears successfully does not mean that an investment in the APS involves no significant liquidity risk. No Broker-Dealer is
obligated to continue to place such bids in any particular auction to prevent an auction from failing or clearing at a dividend rate such Broker-Dealer believes does not reflect the market for the APS. Investors should not assume that any
Broker-Dealer will do so or that &#147;auction failure events&#148; will not occur.</FONT></P>
<P>
<FONT size=2 face="serif">In any particular auction, if all outstanding shares of APS are the subject of submitted hold orders, the applicable dividend rate for the next succeeding distribution period will be the all-hold rate (such a situation is
called an &#147;all-hold auction&#148;). When an all-hold auction appears likely, a Broker-Dealer may, but is not obligated to, advise existing holders of that fact, which might facilitate the submission of bids by existing holders that would avoid
the occurrence of an all-hold auction. If a Broker-Dealer holds any shares of APS for its own account on an auction date, such Broker-Dealer will submit a sell order into the auction with respect to such shares. If such a Broker-Dealer (or any other
existing holder) submits a sell order into the auction, such auction will not be an all-hold auction. Such Broker-Dealer may, but is not obligated to, submit bids in that same auction, as set forth above.</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">&#147;Price talk&#148;</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Before the start of an auction, each Broker-Dealer may, in its discretion, make available to existing holders and potential holders such Broker-Dealer&#146;s good faith judgment of the range of likely clearing dividend
rates for the auction based on market and other information. This is known as &#147;price talk.&#148; Price talk is not a guarantee that the applicable dividend rate established through the auction will be an applicable dividend rate within the
price talk, and existing holders and potential holders are free to use it or ignore it. A Broker-Dealer may occasionally update and change the price talk based on changes in issuer credit quality or macroeconomic factors that are likely to result in
a change in dividend rate levels, such as an announcement by the Federal Reserve Board of a change in the Federal Funds rate or an announcement by the Bureau of Labor Statistics of unemployment numbers.</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">&#147;All-or-nothing&#148; bids</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">None of the Broker-Dealers accepts &#147;all-or-nothing&#148; bids (i.e., bids whereby the bidder proposes to reject an allocation smaller than the entire quantity bid) or any other type of bid that allows the bidder to
avoid auction procedures that require the pro rata allocation of shares of APS when there are not sufficient sell orders to fill all bids at the clearing dividend rate. </FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">No assurances regarding auction outcomes</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">None of the Broker-Dealers provides any assurance as to the outcome of any auction. Nor does any Broker-Dealer provide any assurance that any bid will be accepted or that the auction will clear at a dividend rate that a
bidder considers acceptable. Bids may be rejected or may be only partially filled,</FONT></P>
<p> </p><P>&nbsp;
</P>

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<P><B><FONT size=2 face="sans-serif">42</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>

<p> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<p> </p> <p>
<FONT size=2 face="serif">and the dividend rate on any shares of APS purchased or retained may be lower than the bidder expected.</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">Deadlines/auction periods</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">Each particular auction has a formal time deadline by which all bids must be submitted by each Broker-Dealer to the auction agent. This deadline is called the &#147;auction submission deadline.&#148; To provide sufficient
time to process and submit customer bids to the auction agent before the auction submission deadline, each Broker-Dealer imposes an earlier deadline &#151; called the &#147;internal submission deadline&#148; &#151; by which bidders must submit bids
to such Broker-Dealer. The internal submission deadline is subject to change by such Broker-Dealer. A Broker-Dealer may allow correction of clerical errors after the internal submission deadline and prior to the auction submission deadline. A
Broker-Dealer may submit bids for its own account at any time until the auction submission deadline. The auction agent may allow for the correction of clerical errors for a specified period of time after the auction submission deadline.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Existing holder&#146;s ability to resell auction preferred securities may be limited</FONT></B></P>
<P>
<FONT size=2 face="serif">Existing holders will be able to sell their shares of APS in an auction only if there are sufficient bidders willing to purchase all the shares of APS offered for sale in the auction. If sufficient clearing bids have not
been made, existing holders that have submitted sell orders will not be able to sell in the auction all, and may not be able to sell any, of the shares of APS subject to such submitted sell orders. As discussed above (see &#147;&#151;Bidding by
Broker-Dealers&#148;), a Broker-Dealer may submit a bid in an auction to seek to keep it from failing, but it is not obligated to do so. There may not always be enough bidders to prevent an auction from failing in the absence of a Broker-Dealer
bidding in the auction for its own account. Therefore, &#147;auction failure events&#148; are possible, especially if the credit quality of the APS were to deteriorate, if a market disruption were to occur or if, for any reason, each Broker-Dealer
were unable or unwilling to bid. </FONT></P>
<P>
<FONT size=2 face="serif">Between auctions, there can be no assurance that a secondary market for the APS will develop or, if it does develop, that it will provide existing holders the ability to resell shares of APS in the secondary market on the
terms or at the times desired by an existing holder. Each Broker-Dealer may, in its own discretion, decide to buy or sell shares of APS in the secondary market for its own account to or from investors at any time and at any price, including at
prices equivalent to, below, or above the par value of the APS. However, no Broker-Dealer is obligated to conduct such between-auction trading in the APS, and any Broker-Dealer may discontinue trading in the APS without notice for any reason at any
time. Existing holders who resell between auctions may receive less than par value, depending on market conditions. </FONT></P>
<P>
<FONT size=2 face="serif">The ability to resell the APS (whether during or between auctions) will depend on various factors affecting the market for the APS, including news relating to the Fund or the Adviser, the attractiveness of alternative
investments, the perceived risk of owning the APS (whether related to credit, liquidity or any other risk), the tax or accounting treatment accorded the APS, reactions of market participants to regulatory actions (such as those described in
&#147;&#151;SEC inquiries&#148; below) or press reports, financial reporting cycles and market conditions generally. Demand for the APS may change without warning, and declines in demand may be short-lived or continue for longer periods.</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">Resignation of the auction agent under the Auction Agency Agreement or of any Broker-Dealer under the Broker-Dealer Agreement could affect the ability to hold auctions</FONT></B></P>
<p> </p> <P>
<FONT size=2 face="serif">The Auction Agency Agreement provides that the auction agent may resign from its duties as auction agent by giving at least 60 days&#146; notice to the Fund. The auction agent may also terminate the Auction Agency Agreement
if, after notifying the Fund that it has not received payment of any auction agent fee due it in accordance with the terms of such Agreement, the auction agent does not receive such</FONT></P>
<p> </p>


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<P align="right"><B><FONT size=2 face="sans-serif">43</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P> </P>
<p> <font size=2 face="serif">payment within 30 days. Each Broker-Dealer Agreement provides that the Broker-Dealer thereunder may resign upon 5 days&#146; notice (except that UBS Securities LLC must also obtain the consent of the Fund) and does not require, as a condition to the effectiveness of such resignation, that a replacement Broker-Dealer be in place. For any auction period during which there is no duly appointed auction agent, or during which there is no duly appointed Broker-Dealer, it will not be possible to hold auctions, with the result that the dividend rate on the APS will be the maximum dividend rate.</font></p>

<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">SEC inquiries</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">UBS Securities LLC, as the Underwriter of the APS, has advised the Fund that it and various other firms that participate in the auction rate securities market, which includes the market for APS, received letters from the
SEC staff in May 2004 requesting information about their respective practices and procedures in the auction rate securities market. Pursuant to these requests, the Underwriter and other firms provided information to the SEC staff. On May 31, 2006,
the SEC announced that a number of firms who were active participants in the auction rate securities market settled allegations against them by agreeing to be censured, to pay in the aggregate approximately &#36;13 million in penalties and to agree
to certain undertakings. No action was taken by the SEC against the Underwriter, and the Underwriter is not aware of any ongoing inquiries on this matter related to it.</FONT></P><p> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">AUCTION PROCEDURES</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD>
<FONT size=2 face="serif">Hold order: indicating its desire to hold shares of APS without regard to the applicable divi- dend rate for the next dividend period.</FONT> </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD>
<FONT size=2 face="serif">Bid: indicating its desire to sell shares of APS at &#36;25,000 per share if the applicable dividend rate for the next dividend period is less than the rate specified in the bid.</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD>
<FONT size=2 face="serif">Sell order: indicating its desire to sell shares of APS at &#36;25,000 per share without regard to the applicable dividend rate for the next dividend period.</FONT>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 &#36;25,000</FONT></P>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">44</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>

<p> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>


<p> </p>
<P>
<FONT size=2 face="serif">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 face="serif">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 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 face="serif">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 face="serif">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 face="serif">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 face="serif">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. </FONT></P>
<P> </P>
<p><font size=2 face="serif">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 TH APS will nor-</font></p>
<p> </p>
<P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">45</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE><p> </p>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>


<p> </p>
<HR noshade  width="100%" size=1>
<P>
<FONT size=2 face="serif">mally be held every Thursday, and each subsequent dividend period will normally begin on the following Friday.</FONT></P>
<P>
<FONT size=2 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Existing Holder A</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Owns 500 shares, wants to sell all</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=center>
      <div align="left"><FONT size=2 face="serif">Places bid order of 2.10% rate for all</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">500 shares if applicable dividend</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">500 shares</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">rate is less than 2.10%</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>

          <div align="left"></div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Existing Holder B</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Owns 300 shares, wants to hold</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">Places hold order &#151; will take the</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">applicable dividend rate</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Existing Holder C</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Owns 200 shares, wants to sell all</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=center>
      <div align="left"><FONT size=2 face="serif">Places bid order of 1.90% rate for all</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">200 shares if applicable dividend</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">200 shares</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">rate is less than 1.90%</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>

          <div align="left"></div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Potential Holder D</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Wants to buy 200 shares</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">Places order to buy at or above</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=right>
      <div align="left"><FONT size=2 face="serif">2.00%</FONT>
    </div></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Potential Holder E</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Wants to buy 300 shares</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">Places order to buy at or above</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=right>
      <div align="left"><FONT size=2 face="serif">1.90%</FONT>
    </div></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=right>
<FONT size=2 face="serif">Potential Holder F</FONT>&nbsp;
        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>
<FONT size=2 face="serif">Wants to buy 200 shares</FONT>&nbsp;
        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=left>
      <div align="left"><FONT size=2 face="serif">Places order to buy at or above</FONT>
          </div></TD>
        <TD width=3% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=18% align=left>&nbsp;

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=32% align=left>&nbsp;

        </TD>
        <TD width=7%>&nbsp;
        </TD>
        <TD width=35% align=right>
      <div align="left"><FONT size=2 face="serif">2.10%</FONT>
    </div></TD>
        <TD width=3% align=left>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P> </P>
<p> <font size=2 face="serif">The lowest dividend rate that will result in all 1,000 shares of APS continuing to be held is 2.00% (the offer by Potential Holder 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> </p>
<P>
<FONT size=2 face="serif">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 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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> </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">The affected dividend period will end on the day it otherwise would have ended; and</FONT>    </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">The next dividend period will begin and end on the dates on which it otherwise would have begun and ended.</FONT>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<B><FONT size=2 face="sans-serif">SECONDARY MARKET TRADING AND TRANSFERS OF APS</FONT></B></P>
<P>
<FONT size=2 face="serif">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 invest-</FONT></P>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">46</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">The auction</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P>
<FONT size=2 face="serif">ment. 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 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 face="serif">A beneficial owner or an existing holder may sell, transfer or otherwise dispose of APS only in whole shares and only:</FONT></P>
<UL>
<LI>
<FONT size=2 face="serif">pursuant to a bid or sell order placed with the auction agent in accordance with the auction</FONT> <FONT size=2 face="serif">procedures;</FONT></LI>
<LI>
<FONT size=2 face="serif">to a Broker-Dealer; or</FONT></LI>
<LI>
<FONT size=2 face="serif">to such other persons as may be permitted by the Fund;</FONT></LI>
</UL>
<TABLE><TR><TD nowrap>
<FONT size=2 face="serif">provided, however, that:</FONT><BR>
</TD></TR></TABLE>
<UL>
<LI>
<FONT size=2 face="serif">a sale, transfer or other disposition of APS from a customer of a Broker-Dealer who is listed</FONT> <FONT size=2 face="serif">on the records of that Broker-Dealer as the holder of such shares to that Broker-Dealer
or</FONT> <FONT size=2 face="serif">another customer of that Broker- Dealer shall not be deemed to be a sale, transfer or other</FONT> <FONT size=2 face="serif">disposition if such Broker-Dealer remains the existing holder of the shares;
and</FONT></LI>
<LI>
<FONT size=2 face="serif">in the case of all transfers other than pursuant to auctions, the Broker-Dealer (or other per</FONT><FONT size=2 face="serif">son, if permitted by the Fund) to whom such transfer is made will advise the auction
agent</FONT> <FONT size=2 face="serif">of such transfer.</FONT></LI>
</UL>
<P align="right">
<B><FONT size=2 face="sans-serif">47</FONT></B></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
</P>
<HR noshade  width="100%" size=1>
<p> </p>
<P><FONT size=5 face="sans-serif">Description of capital structure</FONT></P>
<P> </P>
<p> <font size=2 face="serif">The Fund&#146;s authorized capital stock consists of 250,000,000 shares of common stock, &#36;0.001 par value per share, of which 224,965,223 were outstanding at May 31, 2006, and 100,000,000 shares of preferred stock, &#36;0.001 par value per share, of which 17,000 were outstanding at May 31, 2006.</font></p>
<p> </p>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF COMMON STOCK</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF PREFERRED STOCK</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 (&#36;100,000 per share with respect to the RPS and
&#36;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 stock, in the event the Fund is ever liquidated. Each share of
preferred stock is entitled to </FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2 face="serif">vote per &#36;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 face="serif">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 &#36;100,000 per share and all or a portion of the APS and the Existing APS at
a price of &#36;25,000 per share, in each case plus accumulated but unpaid dividends.</FONT></P>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">48</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<p> </p>
<TABLE>
  <TR>
    <TD nowrap> <B><FONT size=2 face="sans-serif">Description of capital structure</FONT></B><BR>
    </TD>
  </TR>
</TABLE>
<HR noshade  width="100%" size=1>
<p> </p>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">DESCRIPTION OF BORROWINGS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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> </P>
<p> <font size=2 face="serif">As of June 1, 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> </p>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<P>
<FONT size=5 face="sans-serif">Certain provisions in the charter and bylaws and certain<br>
provisions of Maryland law</FONT></P>
<P>
<B><FONT size=2 face="sans-serif">ANTI-TAKEOVER PROVISIONS IN THE CHARTER</FONT></B></P>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">49</FONT></B></P>
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<P>
<B><FONT size=2 face="sans-serif">Certain provisions in the charter and bylaws and certain provisions of Maryland law</FONT></B></P>
<HR noshade  width="100%" size=1>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">a merger or consolidation of the Fund with another corporation,</FONT>        </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">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>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">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>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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>
<P>
<B><FONT size=2 face="sans-serif">ANTI-TAKEOVER PROVISIONS IN THE BYLAWS</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<B><FONT size=2 face="sans-serif">ANTI-TAKEOVER PROVISIONS OF MARYLAND LAW</FONT></B></P>
<P>
<B><FONT size=2 face="sans-serif">Maryland Business Combination Act</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">50</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="sans-serif">Certain provisions in the charter and bylaws and certain provisions of Maryland law</FONT></B></P>
<HR noshade  width="100%" size=1>
<UL>
<LI>
<FONT size=2 face="serif">any person who beneficially owns ten percent or more of the voting power of the corporation&#146;s shares; or</FONT></LI>
<LI>
<FONT size=2 face="serif">an affiliate or associate of the corporation who, at any time within the two-year period</FONT> <FONT size=2 face="serif">prior to the date in question, was the beneficial owner of ten percent or more of the voting</FONT>
<FONT size=2 face="serif">power of the then outstanding voting stock of the corporation.</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<UL>
<LI>
<FONT size=2 face="serif">80% of the votes entitled to be cast by holders of outstanding shares of voting stock of the</FONT> <FONT size=2 face="serif">corporation; and</FONT></LI>
<LI>
<FONT size=2 face="serif">two-thirds of the votes entitled to be cast by holders of voting stock of the corporation</FONT> <FONT size=2 face="serif">other than shares held by the interested stockholder with whom or with whose affiliate the</FONT>
<FONT size=2 face="serif">business combination is to be effected or held by an affiliate or associate of the interested</FONT> <FONT size=2 face="serif">stockholder.</FONT></LI>
<LI>
<FONT size=2 face="serif">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</FONT>
<FONT size=2 face="serif">form of cash or other consideration in the same form as previously paid by the interested</FONT> <FONT size=2 face="serif">stockholder for its shares.</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">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>
<P>
<B><FONT size=2 face="sans-serif">Maryland Control Share Acquisition Act</FONT></B></P>
<P> </P>
<p> <font size=2 face="serif">The provisions of the Maryland control share acquisition statute described below do not apply to a closed-end investment company, such as the Fund, unless it has affirmatively elected to be subject to the statute by a resolution of its board of directors. To date, the Fund has not made such an election but may make such an election under Maryland law at any time. Any such election, however, would be subject to the 1940 Act limitations discussed below.</font></p>

<P>
<FONT size=2 face="serif">The Maryland control share acquisition statute 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>
<UL>
<LI>
<FONT size=2 face="serif">one-tenth or more but less than one-third,</FONT></LI>
<LI>
<FONT size=2 face="serif">one-third or more but less than a majority, or</FONT></LI>
<LI>
<FONT size=2 face="serif">a majority or more of all voting power.</FONT></LI>
</UL><p> </p>
<P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">51</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<P>
<B><FONT size=2 face="sans-serif">Certain provisions in the charter and bylaws and certain provisions of Maryland law</FONT></B></P>
<hr noshade  width="100%" size=1>
<P> </P>
<p> <font size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">Section 18(i) of the 1940 Act provides that &#147;every share of stock . . . issued by a registered management company . . . shall be a voting stock and have equal voting rights with every other outstanding voting stock
&#148; Therefore, the Fund is prevented by the 1940 Act from issuing a class of shares with voting rights that vary within that class. There are currently different views on whether or not the Maryland control share acquisition statute conflicts
with Section 18(i) of the 1940 Act. One view is that implementation of the Maryland statute would conflict with the 1940 Act because it would deprive certain shares of their voting rights. Another view is that implementation of the Maryland statute
would not conflict with the 1940 Act because it would limit the voting rights of stockholders who choose to acquire shares of stock that put them within the specified percentages of ownership rather than limiting the voting rights of the shares
themselves. Because of this uncertainty, the Fund will not elect to be subject to the Maryland control share acquisition statute in the absence of a judgment of a federal court of competent jurisdiction or the issuance of a rule or regulation of the
SEC or a published interpretation by the SEC or its staff that the provisions of the Maryland statute are not inconsistent with the provisions of the 1940 Act, or a change to the provisions of the 1940 Act having the same effect.</FONT></P>
<P>
<FONT size=2 face="serif">Additionally, if the Fund elected to be subject to the Maryland Control Share Acquisition Act, it would not apply (a) to shares acquired in a merger, consolidation or share exchange if the Fund is a party to the transaction
or (b) to acquisitions approved or exempted by the charter or bylaws of the Fund.</FONT></P>
<p> </p><P>
<B><FONT size=2 face="sans-serif">Maryland Unsolicited Takeovers Act</FONT></B></P>
<P>
<FONT size=2 face="serif">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>
<UL>
<LI>
<FONT size=2 face="serif">a classified board;</FONT></LI>
<LI>
<FONT size=2 face="serif">a two-thirds vote requirement for removing a director;</FONT></LI>
<LI>
<FONT size=2 face="serif">a requirement that the number of directors be fixed only by vote of directors;</FONT></LI>
</UL>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">52</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P> </P>
<p> <b><font size=2 face="sans-serif">Certain provisions in the charter and bylaws and certain provisions of Maryland law</font></b></p>
<HR noshade  width="100%" size=1>
<p> </p>
<UL>
<LI>
<FONT size=2 face="serif">a requirement that a vacancy on the board be filled only by the remaining directors and for</FONT> <FONT size=2 face="serif">the remainder of the full term of the class of directors in which the vacancy occurred;
and</FONT></LI>
<LI>
<FONT size=2 face="serif">a majority requirement for the calling of a special meeting of stockholders.</FONT></LI>
</UL>
<P>
<FONT size=2 face="serif">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. </FONT><B><FONT size=2 face="serif">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.</FONT></B></P>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Repurchase of common stock</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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>
<FONT size=5 face="sans-serif">U.S. federal income tax matters</FONT></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">TAXATION OF THE FUND</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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</FONT></P>
<P>&nbsp;</P>

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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P>
<FONT size=2 face="serif">Code. As long as the Fund so qualifies, in any taxable year in which it distributes at least 90% of the 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 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">TAXATION OF SHAREHOLDERS</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">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 that are designated as capital gain dividends, 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> </p>
<P>
<FONT size=2 face="serif">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.</FONT></P>
<P>
<FONT size=2 face="serif">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.</FONT></P>
<P>
<FONT size=2 face="serif">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</FONT></P>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">54</FONT></B></P>
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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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 face="serif">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 face="serif">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> </P><FONT size=2 face="serif">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 are individuals and 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 begin-</FONT><p></P>
<P> </P><P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">55</FONT></B></P>
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<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P> </P>
<p> <font size=2 face="serif">ning before January 1, 2011. Fund distributions designated as capital gain dividends, if any, 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 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.</font></p>
<p> </p>
<P>
<FONT size=2 face="serif">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> </P>
<p> <font size=2 face="serif">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, 2011. 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 face="serif">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 fewer 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> </p>
<P>
<FONT size=2 face="serif">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 face="serif">The Fund will inform shareholders of the source and tax status of all distributions promptly after the close of each calendar year.</FONT></P>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">SALES OF APS</FONT></B><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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</FONT></P>
<P>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">56</FONT></B></P>
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<p> </p>
<TABLE>
  <TR>
    <TD nowrap> <B><FONT size=2 face="sans-serif">U.S. federal income tax matters</FONT></B><BR>
    </TD>
  </TR>
</TABLE>
<HR noshade  width="100%" size=1>

<p> <font size=2 face="serif">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 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 dividends 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> </p>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<B><FONT size=2 face="sans-serif">BACKUP WITHHOLDING</FONT></B><BR>
</TD></TR></TABLE>
<P> </P>
<p> <font size=2 face="serif">The Fund is required to withhold a percentage of all ordinary income dividends, capital gain dividends 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 ordinary income dividends and capital gain dividends 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> </p>
<P>
<FONT size=2 face="serif">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> </P>
<p>&nbsp;</p>
<p> </p>
<P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">57</FONT></B></P>
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<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Underwriting</FONT><BR>
</TD></TR></TABLE>
<HR noshade  width="100%" size=1>
<P> </P>
<p> <font size=2 face="serif">UBS Securities LLC, 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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=19% align=left>
<B><FONT size=1 face="sans-serif">Underwriter</FONT></B>&nbsp;
        </TD>
        <TD colspan="2">
      <div align="right"><B><FONT size=1 face="sans-serif">Number of shares of APS</FONT></B>&nbsp;
          </div></TD>
  </TR>
<TR>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=19% align=left>
<FONT size=2 face="serif">UBS Securities LLC</FONT>&nbsp;
        </TD>
        <TD width=75%>&nbsp;
        </TD>
        <TD width=6% align=right>
<FONT size=2 face="serif">8,000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=2>
        </TD>
</TR>
</TABLE>
<BR>
<P>
<FONT size=2 face="serif">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 &#36;137.50 per share. The sales load the Fund will pay of &#36;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 &#36;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 , 2006.</FONT></P>
<p> </p><P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">In connection with this offering, the Underwriter or selected dealers may distribute prospectuses electronically.</FONT></P>
<P>
<FONT size=2 face="serif">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>
<FONT size=5 face="sans-serif">Custodian, transfer agent and auction agent</FONT></P>
<P>
<FONT size=2 face="serif">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>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Legal opinions</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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>&nbsp;</P>

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<P><B><FONT size=2 face="sans-serif">58</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<HR noshade  width="100%" size=1>
<TABLE><TR><TD nowrap>
<FONT size=5 face="sans-serif">Available information</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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><TR><TD nowrap>
<FONT size=5 face="sans-serif">Privacy principles of the Fund</FONT><BR>
</TD></TR></TABLE>
<P>
<FONT size=2 face="serif">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 face="serif">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 face="serif">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>
<P>&nbsp;</P>

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<P align="right"><B><FONT size=2 face="sans-serif">59</FONT></B></P>
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<P align="left" style="page-break-before:always"></P><PAGE>


<HR noshade  width="100%" size=1>
<p>&nbsp;</p>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=5 face="sans-serif">Table of contents for the</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=5 face="sans-serif">Statement of Additional Information</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR></table><P> </P><table width="100%">
<TR valign="bottom">
        <TD width=76% align=left>&nbsp;

        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<B><FONT size=2 face="serif">Page</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Investment Policies, Techniques and Restrictions</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">5</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Portfolio Transactions and Brokerage</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Additional Information Concerning the Auctions for APS</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">16</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Repurchase of Common Stock</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Dividend Reinvestment Plan</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">23</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">U.S. Federal Income Tax Matters</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">24</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Experts</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">31</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Financial Statements</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">31</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
<FONT size=2 face="serif">Appendix A: Form of Articles Supplementary Creating Series T and Series TH</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=76% align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">of Auction Preferred Stock</FONT>&nbsp;
        </TD>
        <TD width=18%>&nbsp;
        </TD>
        <TD width=4% align=right>
<FONT size=2 face="serif">A-1</FONT>&nbsp;
        </TD>
</TR>
</TABLE><BR>



<p> </p>
<HR noshade  width="100%" size=1>
<P><B><FONT size=2 face="sans-serif">60</FONT></B></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<center>
  <HR noshade  width="100%" size=1>
  <IMG src="c42214_n2ax66x1.jpg" border=0>
  <BR>

</center>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>

<P><FONT face=arial 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>&nbsp;</P><br>
<P>&nbsp;</P>

<P ALIGN=CENTER><FONT face=arial SIZE=2 COLOR=RED>Subject to
Completion,
dated July 5,
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>&nbsp;</P><P>&nbsp;</P>

<P><B><FONT size=2 face="serif">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 July 5, 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.</FONT></B></P>

<P align="right">
<FONT size=2 face="serif">1</FONT></P>


<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_3"></A>

<P align="center">
<B><FONT size=2 face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<B><FONT size=1 face="serif">Page</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Investment Policies, Techniques and Restrictions</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">2</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Management of the Fund</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">5</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Portfolio Transactions and Brokerage</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information Concerning the Auctions for APS</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">16</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Repurchase of Common Stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Dividend Reinvestment Plan</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">23</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">U.S. Federal Income Tax Matters</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">24</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Experts</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">30</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Additional Information</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Financial Statements</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">31</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> </TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Appendix A: Articles Supplementary Creating Series T and Series TH of</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Auction Preferred Stock</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-1</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
  <TD align=left> </TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR><HR noshade  width="25%" size=1>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Capitalized terms used in this SAI and not otherwise defined have the meanings given them in the Fund&#146;s prospectus.</FONT></P>
<P>&nbsp;</P><P align="center">
<FONT size=2 face="serif">1</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_4"></A>

<P align="center">
<B><FONT size=2 face="serif">INVESTMENT POLICIES, TECHNIQUES AND RESTRICTIONS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Fundamental Investment Restrictions</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="23" valign=top nowrap>&nbsp;</TD>
        <TD width="49" valign=top nowrap>
<FONT size=2 face="serif">1.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">2.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">The Fund may not:</FONT>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD width="56" valign=top nowrap>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD width="845">
<FONT size=2 face="serif">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>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">acquire more than 10% of the outstanding voting securities of any one issuer (at the time of acquisition);</FONT>     </TD>
</TR><TR>
  <TD>&nbsp;</TD>
<TD>&nbsp;</TD> <TD colspan=2>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">3.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>    </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">4.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">5.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>        </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">6.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>  </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">7.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>      </TD>
</TR>
<TR><TD colspan=4>&nbsp;</TD></TR></TABLE>
<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>
<A name="page_5"></A>

<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="26" align=right valign=top>&nbsp;</TD>
        <TD width="56" align=right valign=top>
<FONT size=2 face="serif">8.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD width="891">
<FONT size=2 face="serif">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> </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD valign=top align=right>
<FONT size=2 face="serif">9.</FONT>&nbsp; &nbsp; &nbsp;         </TD>
        <TD>
<FONT size=2 face="serif">The Fund may not invest for the purpose of exercising control over or management of any company.</FONT>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD valign=top align=right>
<FONT size=2 face="serif">10.</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD valign=top align=right>
<FONT size=2 face="serif">11.</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD valign=top align=right>&nbsp;</TD>
        <TD valign=top align=right>
<FONT size=2 face="serif">12.</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>  </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Additional Nonfundamental Restrictions</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Other Significant Investment Policies</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Fixed Income Securities. </FONT></B><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Rating Agency Guidelines. </FONT></B><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Options and Futures Transactions. </FONT></B><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Swap and Swaption Transactions. </FONT></B><FONT size=2 face="serif">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 face="serif">3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_6"></A>

<P>
<FONT size=2 face="serif">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 &#36;100 million and (C) rated investment grade by both S&amp;P and Moody&#146;s.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Credit Derivatives. </FONT></B><FONT size=2 face="serif">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</FONT><FONT size=1 face="serif"><SUP> 1 </SUP>/<SUB> 3
</SUB></FONT><FONT size=2 face="serif">% of the Fund&#146;s total assets.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT size=2 face="serif">Foreign securities. </FONT></B><FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Percentage Restrictions</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_7"></A>

<P>
<B><FONT size=2 face="serif">MANAGEMENT OF THE FUND</FONT></B></P>
<P>
<B><FONT size=2 face="serif">Directors and Officers</FONT></B></P>


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></P>
<br>
<br><TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="23%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="13%" align=center>
<B><FONT size=1 face="serif">Position(s) Held</FONT></B>
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="25%" align=left>

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="10%" align=center>
<B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="21%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">With the Fund,</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Term of</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Office and</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Length of</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Time Served</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
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        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Stewart E. Conner (3)(4)</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Attorney, Wyatt Tarrant &amp;</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Combs LLP since 1966</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

 <div align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Management Co.</FONT>
    </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2004.</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(Chairman, Executive</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Committee 2000&#150;2004,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Managing Partner 1988&#150;</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>      <div align="left"><FONT size=2 face="serif">in 2007</FONT>
    </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>      <div align="left"><FONT size=2 face="serif">2000)</FONT>
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Age: 64</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Connie K. Duckworth (2)(4)</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Founder, Chairman, and</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Director, Smurfit-Stone</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">President, Arzu, Inc. (non-</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Container Corporation</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

 <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>Management Co.</FONT>&nbsp;
    </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2002.</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">profit corporation created to</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">(packaging manufacturer)</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">assist Afghan women through</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">and Nuveen Investments,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">sale of homemade rugs)</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Inc.; Trustee, Northwestern</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2008</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since August 2003; Member,</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Mutual Life Insurance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Age: 51</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Eight Wings Enterprises LLC</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Company; Director and</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(investor in early stage</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Vice Chairman, Evanston</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">businesses) 2002&#150;2004;</FONT>
      </div></TD>
        <TD>&nbsp;
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        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Northwestern Health Care</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Advisory Director, Goldman,</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Corporation; Member,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Sachs &amp; Company, December</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Board of Overseers,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">2000&#150;December</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Wharton School of the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(Managing Director,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">University of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">December 1996&#150;December</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Pennsylvania</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">2000, Partner 1990&#150;1996,</FONT>&nbsp;        </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chief Operating Officer of</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Firmwide Diversity Committee</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>      <div align="left"><FONT size=2 face="serif">1990&#150;1995</FONT><font size=2 face="serif">)</font>&nbsp;
    </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=9>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Robert J. Genetski (2)(5)</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">President, Robert Genetski</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Director, Midwest</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">&amp; Associates, Inc. (economic</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Banc Holdings Inc.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

 <div align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Management Co.</FONT>&nbsp;
    </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2001.</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">and financial consulting firm)</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since 1991; Senior Managing</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Director, Chicago Capital, Inc.</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2007</FONT>
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Inc. (financial services firm)</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Age: 63</FONT>&nbsp;
      </div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">1995&#150;2001; former Senior Vice</FONT>&nbsp;
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
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          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief Economist,</FONT>&nbsp;
      </div></TD>
        <TD align=left>&nbsp;</TD>
        <TD align=left>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Harris Trust &amp; Savings Bank;</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
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        <TD align=left>

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        <TD>
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          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">author of several books; regular</FONT>&nbsp;
      </div></TD>
        <TD align=right>&nbsp;</TD>
        <TD align=right>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>
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        <TD align=left>

          <div align="left"></div></TD>
        <TD>
          <div align="left"></div></TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">contributor to the </FONT><I><FONT size=2 face="serif">Nikkei</FONT></I>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
      <div align="left"></div></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><div align="left"><i><font size=2 face="serif">Financial Daily</font></i> </div></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_8"></A><br>

<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="11%" align=center>
<B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD width="3%">&nbsp;
        </TD>
        <TD width="20%" align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
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<HR align="left" size=1 noshade>
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        <TD>
        </TD>
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<HR noshade size=1>
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        <TD>
        </TD>
        <TD>
<HR align="left" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Francis E. Jeffries (1)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">54</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">DTF Tax-Free Income Inc.</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Management Co.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 1987.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">and Duff &amp; Phelps Utility</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">and Corporate Bond Trust</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Inc. (the &#147;DTF and DUC</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2007</FONT>
      </div></TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Funds&#148;) since September</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Age: 75</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">1991 and November 1992,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">respectively (President,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">May 2005</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 2000&#150;February</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">(Vice</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">2004), Chairman, Phoenix</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Investment Partners, Ltd.</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">April 2004&#150;</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">November 1995&#150;May</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">May 2005).</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1997; Chairman and Chief</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Executive Officer, Duff &amp;</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Phelps Corporation, June</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1993&#150;November 1995</font>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(President and Chief</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Executive Officer, January</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1992&#150;June 1993);</font>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
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        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Duff &amp; Phelps Investment</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Management Co. 1988&#150;</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">1993</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=9>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Nancy Lampton (3)(4)(5)</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Chairman and Chief</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">3</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Director, Constellation</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Executive Officer,</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Energy Group, Inc.</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Management Co.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">October 1994.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Hardscuffle Inc. (insurance</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(public utility holding</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">holding company) since</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">company); Advisory</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">January 2000; Chairman</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Board Member,</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">in 2009</FONT>
      </div></TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">and Chief Executive</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Thorium Power, Inc.</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Age: 63</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Vice Chairman</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">Officer, American Life and</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">(designer of non-</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Accident Insurance</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">proliferative fuel for</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <div align="left"><FONT size=2 face="serif">February 2006.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">Company of Kentucky</FONT>
      </div></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <div align="left"><FONT size=2 face="serif">nuclear energy needs)</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center>&nbsp;
</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center><div align="left"><font size=2 face="serif">since 1971</font> </div></TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
    <TD align=center>&nbsp;</TD>
</TR>
</TABLE>
<BR><BR>
<P align="center">
<FONT size=2 face="serif">6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_9"></A>
<br>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">Position(s) Held</FONT></B>
    </center></TD>
        <TD width=2% align=left>

          <center>
    </center></TD>
        <TD width=24% align=left>

          <center>
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">With the Fund,</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD width=24% align=left>

          <center>
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">Portfolios in</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">Term of</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD width=24% align=left>

          <center>
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">Office and</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD width=24% align=left>

          <center>
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">Complex</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=left>

          <center>
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><B><FONT size=1 face="serif">Name, Address</FONT></B>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">Length of</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD width=24% align=center>
      <center>
        <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>&nbsp;
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">Overseen</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=center>
      <center>
        <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><B><FONT size=1 face="serif">and Age</FONT></B>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <center>
        <B><FONT size=1 face="serif">Time Served</FONT></B>
    </center></TD>
        <TD align=left>

          <center>
    </center></TD>
        <TD width=24% align=center>
      <center>
        <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>&nbsp;
    </center></TD>
        <TD width=2%>
          <center>
    </center></TD>
        <TD width=11% align=center>
      <center>
        <B><FONT size=1 face="serif">by Director</FONT></B>&nbsp;
    </center></TD>
        <TD width=3%>
          <center>
    </center></TD>
        <TD width=20% align=left>
      <center>
        <B><FONT size=1 face="serif">Held by Director/Officer</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD width="22%">
<HR align="left" size=1 noshade>
        </TD>
        <TD width="1%">
<HR noshade size=1>
        </TD>
        <TD width="15%">
<HR align="left" size=1 noshade>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD width="24%">
<HR align="left" size=1 noshade>
        </TD>
        <TD width="2%">
        </TD>
        <TD width="11%">
<HR align="left" size=1 noshade>
        </TD>
        <TD width="3%">
        </TD>
        <TD width="20%">
<HR align="left" size=1 noshade>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Christian H. Poindexter</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Retired Chairman and</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=center>
      <center>
        <FONT size=2 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Director, Mercantile</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=right>
      <div align="left"><FONT size=2 face="serif">(2)(3</FONT><font size=2 face="serif">)</font>
    </div></TD>
        <TD width=1% align=left>&nbsp;
        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Chief Executive Officer,</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Bankshares Corporation</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">May 2003.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Constellation Energy</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">(bank holding company);</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=right>
      <div align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Management Co.</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Group, Inc. (public utility</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Director, The Baltimore</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">holding company) since</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Life Insurance Company;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">in 2009</FONT>
      </div></TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">March 2003 (Executive</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Member, Finance and</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Committee Chairman, &#150;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Investment Committee,</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=right>
      <div align="left"><FONT size=2 face="serif">Age: 67</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">July 2002&#150;March 2003;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">National Executive Board,</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board,</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Boy Scouts of America;</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">April 1999&#150;July 2002;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Chairman, Investment</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Chief Executive Officer, &#150;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Committee, U.S. Naval</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">April 1999&#150;October 2001;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Academy Foundation</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">President, April 1999&#150;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">October 2000); Chairman,</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Baltimore Gas and Electric</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Company, January 1993&#150;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">July 2002 (Chief Executive</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Officer, January 1993&#150;July</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">2000; President, March</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">1998&#150;October 2000;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Director, 1988&#150;2003)</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR>
        <TD colspan=9>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Carl F. Pollard (1)(2)</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Owner, Hermitage Farm</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=center>
      <center>
        <FONT size=2 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Chairman of the Board</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=center>
      <div align="left"><FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">L.L.C. (thoroughbred</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">and Director,</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>Management Co.</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">April 2002.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">breeding) since January</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Churchill Downs</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">55 East Monroe Street,</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">1995; Chairman, Columbia</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>
      <div align="left"><FONT size=2 face="serif">Incorporated</FONT>&nbsp;
      </div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Suite 3600</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Healthcare Corporation</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
      <div align="left"><FONT size=2 face="serif">Chicago, Illinois 60603</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=right>
      <div align="left"><FONT size=2 face="serif">in 2008</FONT>
      </div></TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">1993&#150;1994; Chairman and</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=right>
      <div align="left"><FONT size=2 face="serif">Age: 67</FONT>
      </div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Chief Executive Officer,</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Galen Health Care, Inc.</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">March&#150;August 1993;</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Operating Officer, Humana</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Inc. 1991&#150;1993 (previously</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Senior Executive Vice</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">President, Executive Vice</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>

          <div align="left"></div></TD>
        <TD width=1% align=left>&nbsp;

        </TD>
        <TD width=15% align=left>

          <div align="left"></div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD width=24% align=left>
      <div align="left"><FONT size=2 face="serif">Financial Officer)</FONT>&nbsp;
      </div></TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=11% align=left>

          <div align="left"></div></TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=20% align=left>

          <div align="left"></div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">7</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_10"></A>
<br>

<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width="22%" align=left>&nbsp; </TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">Position(s) Held</font></b></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">Number of</font></b>&nbsp;
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">With the Fund,</font></b>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">Portfolios in</font></b>&nbsp;
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">Term of</font></b></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">Fund</font></b>
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">Office and</font></b></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">Complex</font></b>
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left><b><font size=1 face="serif">Name, Address</font></b>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">Length of</font></b></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
    <b><font size=1 face="serif">Principal Occupation(s)</font></b>&nbsp;
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">Overseen</font></b>
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
    <B><FONT size=1 face="serif">Other Directorships</FONT></B>&nbsp;
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left><b><font size=1 face="serif">and Age</font></b>&nbsp;</TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><b><font size=1 face="serif">Time Served</font></b>&nbsp;</TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><center>
    <b><font size=1 face="serif">During Past 5 Years</font></b>&nbsp;
  </center></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><center>
    <b><font size=1 face="serif">by Director</font></b>
  </center></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><center>
    <b><font size=1 face="serif">Held by Director/Officer</font></b>
  </center></TD>
</TR>
<TR valign="bottom">
  <TD width="22%" align=left><hr noshade size=1></TD>
  <TD width="1%">&nbsp;</TD>
  <TD width="15%" align=center><hr noshade size=1></TD>
  <TD width="2%" align=left>&nbsp;</TD>
  <TD width="24%" align=left><hr align="center" size=1 noshade></TD>
  <TD width="2%" align=left><center>
  </center></TD>
  <TD width="11%" align=left><hr align="center" size=1 noshade></TD>
  <TD width="3%" align=left><center>
  </center></TD>
  <TD width="20%" align=left><hr align="center" size=1 noshade></TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">David J. Vitale (1)(4)</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
      <div align="left"><FONT size=2 face="serif">Director</FONT>
      </div></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">Chief Administrative</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">c/o Duff &amp; Phelps Investment</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
      <div align="left"><FONT size=2 face="serif">since</FONT>
      </div></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Officer, Chicago Public</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center><FONT size=2 face="serif">3</font></TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">Director, UAL</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
 &nbsp; &nbsp;<FONT size=2 face="serif">Management Co.</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
      <div align="left"><FONT size=2 face="serif">April 2000.</FONT>
      </div></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Schools since April 2003;</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">Corporation (airline</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">55 East Monroe Street,</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
      <div align="left"><FONT size=2 face="serif">Term</FONT>
      </div></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Private investor November</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">holding company).</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Suite 3600</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
      <div align="left"><FONT size=2 face="serif">expires</FONT>
      </div></TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">2002&#150;April 2003; President</font>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"><FONT size=2 face="serif">ISO New England Inc.</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=right>
      <div align="left"><FONT size=2 face="serif">in 2009.</FONT>
      </div></TD>
        <TD width="2%" align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">and Chief Executive</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"><FONT size=2 face="serif">(not for profit indepen-</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Age: 60</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Officer, Board of Trade of</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">dent system operator of</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">the City of Chicago, Inc.,</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">New England&#146;s electricity</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">March 2001&#150;November</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">supply), Ariel Capital</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">2002; Retired executive</FONT>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"><FONT size=2 face="serif">Management, Inc., Ark</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1999&#150;2001; Vice Chairman</FONT>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"><FONT size=2 face="serif">Investment Management</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">and Director, Bank One</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">and Wheels, Inc.</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Corporation, 1998&#150;1999;</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"><FONT size=2 face="serif">(automobile fleet </FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">Vice Chairman and</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"><FONT size=2 face="serif">management)</FONT></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">Director, First Chicago</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">NBD Corporation, and</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">President, The First</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">National Bank of Chicago,</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1995&#150;1998; Vice</FONT>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Chairman, First Chicago</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Corporation and The First</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">National Bank of Chicago,</FONT>
      </div></TD>
        <TD width="2%" align=center>&nbsp;</TD>
        <TD width="11%" align=center>&nbsp;</TD>
        <TD width="3%" align=center>&nbsp;</TD>
        <TD width="20%" align=center><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1993&#150;1998 (Director,</FONT>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1992&#150;1998; Executive Vice</FONT>
      </div></TD>
        <TD width="2%" align=right>&nbsp;</TD>
        <TD width="11%" align=right>&nbsp;</TD>
        <TD width="3%" align=right>&nbsp;</TD>
        <TD width="20%" align=right><div align="left"></div></TD>
  </TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>

        </TD>
        <TD width="2%" align=left>&nbsp;

        </TD>
        <TD width="24%" align=left>
<FONT size=2 face="serif">President, 1986&#150;1993)</FONT>
        </TD>
        <TD width="2%" align=left>&nbsp;</TD>
        <TD width="11%" align=left>&nbsp;</TD>
        <TD width="3%" align=left>&nbsp;</TD>
        <TD width="20%" align=left><div align="left"></div></TD>
  </TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR><TD>&nbsp;</TD>
</TR></TABLE>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
      <p>
      <FONT size=2 face="serif">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 th accountants to determine the scope of and review the results of each audit. The audit committee met twice during 2005.</font>
  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(3)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>   </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(4)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(5)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Director elected by holders of preferred stock.</FONT>        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">8</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<p><A name="page_11"></A>
</p>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="22%" align=left>
<B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
<B><FONT size=1 face="serif">Position(s) Held</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <center>
        <B><FONT size=1 face="serif">Term of Office and</FONT></B>
    </center></TD>
        <TD width="4%">
          <center>
    </center></TD>
        <TD width="20%" align=left>
 <center>
   <B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=center>
<B><FONT size=1 face="serif">With the Fund</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <center>
        <B><FONT size=1 face="serif">Length of Time Served</FONT></B>
    </center></TD>
        <TD width="4%">
          <center>
    </center></TD>
        <TD width="20%" align=left>
 <center>
   <B><FONT size=1 face="serif">During Past 5 Years</FONT></B>&nbsp;
    </center></TD>
</TR>
<TR>
        <TD width="22%">
<HR noshade size=1>
        </TD>
        <TD width="1%">
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="2%">
        </TD>
        <TD width="24%">
<HR align="left" size=1 noshade>
        </TD>
        <TD width="4%">
        </TD>
        <TD width="20%">
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<B><I><FONT size=2 face="serif">Officers of the Fund</FONT></I></B>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">President and Chief</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">President and Chief Executive</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">President and Chief</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Executive Officer</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">Officer since February 2001</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Executive Officer, the DTF</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">(Chief Investment Officer since</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">and DUC Funds since</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left> <FONT size=2 face="serif">Age: 49</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">January 1998, Executive Vice</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">February 2004; President</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">President April 1998&#150;February</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">and Chief Investment Officer,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">2001, Senior Vice President</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Duff &amp; Phelps Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">January 1997&#150;April 1998, Assistant</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Secretary January 1997&#150;February</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">April 2005 (Executive Vice</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">2001).</font>
    </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">President January 1997&#150;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">April 2005); Director of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Utility Research, Duff &amp;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Phelps Investment Research</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Co., 1989&#150;1996 (Director of</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Equity Research, 1993&#150;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">1996 and Director of Fixed</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Income Research, 1993);</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Director, Otter Tail</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Corporation (1993&#150;present)</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">T. Brooks Beittel</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Secretary and Senior</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">Secretary and Senior Vice</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Senior Vice President, Duff</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Vice President</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">President since January 1995</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">&amp; Phelps Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">(Treasurer January 1995&#150;</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left> <font size=2 face="serif">Age: </font><FONT size=2 face="serif">56</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">September 2002).</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">1993 (Vice President 1987&#150;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">1993); Secretary of the</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">DTF and DUC Funds since</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">May 2005</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Michael Schatt</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Senior Vice</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Senior Vice President since April</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Senior Vice President, Duff</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">President</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">1998 (Vice President January</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">&amp; Phelps Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1997&#150;April 1998.</font>&nbsp;        </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Management Co. since</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left> <font size=2 face="serif">Age: 59</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">January 1997; Managing</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Director, Phoenix</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Investment Partners, Ltd.,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">1994&#150;1996</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Joseph C. Curry, Jr.</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Treasurer and Senior</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">Treasurer since September 2002;</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Senior Vice President,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Hilliard Lyons Center</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>
<FONT size=2 face="serif">Vice President</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>
      <div align="left"><FONT size=2 face="serif">Senior Vice President since</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">J.J.B. Hilliard, W.L. Lyons,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">Louisville, Kentucky</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=center>
      <div align="left"><FONT size=2 face="serif">May 2006 (Vice President April</FONT>
      </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Inc. since 1994 (Vice</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
<FONT size=2 face="serif">40202</FONT>&nbsp;
        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=right>
      <div align="left"><FONT size=2 face="serif">1988&#150;May 2006).</font>
    </div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">President 1982&#150;1994); Vice</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>
 <div align="left"><FONT size=2 face="serif">Age: 61</FONT>&nbsp;
    </div></TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">President, Hilliard Lyons</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Trust Company; President,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Hilliard-Lyons Government</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Fund, Inc.; Vice President</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">and Assistant Treasurer,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width="22%" align=left>&nbsp;

        </TD>
        <TD width="1%">&nbsp;
        </TD>
        <TD width="15%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="24%" align=left>

          <div align="left"></div></TD>
        <TD width="4%">&nbsp;
        </TD>
        <TD width="20%" align=left>
<FONT size=2 face="serif">Senbanc Fund</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<BR><P align="center">
<FONT size=2 face="serif">9</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_12"></A>
<BR>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=left>
<B><FONT size=1 face="serif">Name, Address</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=center>
<B><FONT size=1 face="serif">Position(s) Held</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=center>
      <center>
        <B><FONT size=1 face="serif">Term of Office and</FONT></B>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp;<B><FONT size=1 face="serif">Principal Occupation(s)</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<B><FONT size=1 face="serif">and Age</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=center>
<B><FONT size=1 face="serif">With the Fund</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=center>
<B><FONT size=1 face="serif">Length of Time Served</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp;<B><FONT size=1 face="serif">During Past 5 Years</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="22%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD width="24%">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">Joyce B. Riegel</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>
<FONT size=2 face="serif">Chief Compliance</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">Chief Compliance Officer since</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Chief Compliance Officer,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">55 East Monroe Street</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>
<FONT size=2 face="serif">Officer</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">February 2004.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">the DTF and DUC Funds</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">Chicago, Illinois 60603</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">since August 2003; Senior</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left> <FONT size=2 face="serif">Age: 51</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Vice President and Chief</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Compliance Officer of Duff</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">&amp; Phelps Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Management Co. since 2004;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Vice President and Compli-</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">ance Officer, Duff &amp; Phelps</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Investment Management Co.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">2002&#150;2004; Vice President</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">and Chief Compliance Officer,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Stein Roe Investment</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Counsel LLC January</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">2001&#150;August 2002; Vice</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">President and Compliance</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Officer, Stein Roe &amp;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Farnham Incorporated July</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">1996&#150;December 2000</FONT>&nbsp;
        </TD>
</TR>
<TR>
        <TD colspan=7>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">Dianna P. Wengler</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>
<FONT size=2 face="serif">Vice President</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">Vice President since May 2006</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Vice President, J.J.B.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">Hilliard Lyons Center</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>
<FONT size=2 face="serif">and Assistant</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">(Assistant Vice President</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Hilliard, W.L. Lyons, Inc.</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">Louisville, Kentucky</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>
<FONT size=2 face="serif">Secretary</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">April 2004&#150;May 2006); Assistant</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">since 1990; Vice President,</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<FONT size=2 face="serif">40202</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>
<FONT size=2 face="serif">Secretary since April 1988.</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Hilliard-Lyons Government</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD width=22% align=left>
<font size=2 face="serif">Age: 45</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=15% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD width=24% align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Fund, Inc.</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR><BR>
<BR>
<P align="center">
<FONT size=2 face="serif">10</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_13"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=14%>&nbsp;
        </TD>
        <TD width=21% align=center>
<B><FONT size=1 face="serif">Aggregate Dollar Range of Equity</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Securities in All Funds Overseen</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">or to be Overseen by Director or</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Dollar Range of Equity Securities</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Nominee in Family of Investment</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD height="21" colspan="2" align=left>
<B><FONT size=1 face="serif">Name of Director</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">in the Fund</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Companies</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD width="15%">
<HR noshade size=1>
        </TD>
        <TD width="15%">&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;50,001-&#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;50,001-&#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;</FONT> <FONT size=2 face="serif">100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Francis E. Jeffries</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">over &#36;100,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;</FONT> <FONT size=2 face="serif">10,001-&#36;50,000</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10,001-&#36;50,000</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">The following table shows the compensation paid by the Fund to the Fund&#146;s current directors during 2005:</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=center colspan=9>
<B><FONT size=2 face="serif">COMPENSATION TABLE </FONT></B><FONT size=2 face="serif">(1)(2)</FONT>
        </TD>
</TR>
<TR valign="bottom">
  <TD colspan="2" align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
  <TD colspan="2" align=center>&nbsp;</TD>
  <TD align=center>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<B><FONT size=1 face="serif">Aggregate</FONT></B>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=center>&nbsp;</TD>
        <TD colspan="3" align=center>
<B><FONT size=1 face="serif">Total</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<B><FONT size=1 face="serif">Compensation</FONT></B>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=center>&nbsp;</TD>
        <TD colspan="3" align=center>
<B><FONT size=1 face="serif">Compensation from</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left>&nbsp;

        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<B><FONT size=1 face="serif">from the</FONT></B>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=center>&nbsp;</TD>
        <TD colspan="3" align=center>
<B><FONT size=1 face="serif">the Fund and the</FONT></B>&nbsp;
        </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<B><FONT size=1 face="serif">Name of Director</FONT></B>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<B><FONT size=1 face="serif">Fund</FONT></B>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=center>&nbsp;</TD>
        <TD colspan="3" align=center>
<B><FONT size=1 face="serif">Fund Complex (2)</FONT></B>&nbsp;
        </TD>
  </TR>
<TR>
        <TD width="97">
<HR noshade size=1>
        </TD>
        <TD width="389">&nbsp;</TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>&nbsp;</TD>
        <TD colspan="2">
<HR noshade size=1>
        </TD>
    <TD><HR noshade size=1></TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<B><I><FONT size=2 face="serif">Independent Directors</FONT></I></B>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=left>&nbsp;

        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=left>&nbsp;</TD>
        <TD colspan="2" align=left>&nbsp;

        </TD>
    <TD width=91 align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Stewart E. Conner</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">&#36;42,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD width=80 align=right>      <div align="right"><FONT size=2 face="serif">&#36;</FONT>
    </div></TD>
    <TD width=55 align=right><font size=2 face="serif">42,000</font>&nbsp;</TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Connie K. Duckworth</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">45,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">45,000</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Robert J. Genetski</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">42,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">42,000</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Francis E. Jeffries</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">78,393</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">197,393</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Nancy Lampton</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">50,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">76,901</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Christian H. Poindexter</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">45,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">45,000</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">Carl F. Pollard</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">47,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">47,000</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
        <TD colspan="2" align=left>
<FONT size=2 face="serif">David J. Vitale</FONT>&nbsp;
        </TD>
        <TD width=17 align=left>&nbsp;

        </TD>
        <TD width=197 align=center>
<FONT size=2 face="serif">47,000</FONT>&nbsp;
        </TD>
        <TD width=10>&nbsp;
        </TD>
        <TD width=36 align=right>&nbsp;</TD>
        <TD colspan="2" align=right>      <div align="right"><FONT size=2 face="serif">70,901</FONT>&nbsp;
    </div></TD>
    <TD width=91 align=right>&nbsp;</TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Each director not affiliated with the Adviser receives an annual fee of &#36;25,000 (and an additional &#36;5,000 if the director serves as chairman of a committee of the board of directors) plus an attendance fee of
&#36;2,000 for each meeting of the board of directors and &#36;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 &#36;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>      </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">The Fund Complex includes all funds that are advised
by the Adviser or other affiliates of Phoenix </FONT><font size=2 face="serif">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>  </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">11</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_14"></A>

<P>
<B><FONT size=2 face="serif">Portfolio Managers</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width="17%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD colspan=5 align=right>
      <center>
        <B><FONT size=1 face="serif">Registered Investment</FONT></B>&nbsp;
      </center> </TD>
        <TD width="2%">&nbsp;</TD>
        <TD colspan=3 align=right>
      <center>
        <B><FONT size=1 face="serif">Other Pooled Investment</FONT></B>&nbsp;
      </center></TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="11%" align=left>&nbsp;

        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="13%" align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>&nbsp;

        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=5 align=left>

 <center>
   <B><FONT size=1 face="serif">Companies (1)</FONT></B>&nbsp;
    </center>   </TD>
        <TD>&nbsp;</TD>
        <TD colspan=3 align=center>
<B><FONT size=1 face="serif">Vehicles (2)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=3 align=right>
      <center>
        <B><FONT size=1 face="serif">Other Accounts (3)</FONT></B>&nbsp;
      </center></TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD colspan=5>
<HR noshade size=1>
        </TD>
        <TD></TD>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan=3>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name of</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD width="11%" align=center>
<B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD colspan=3 align=left>         <center>
    <B><FONT size=1 face="serif">Total Assets</FONT></B>&nbsp;      </center>   </TD>
        <TD>&nbsp;</TD>
        <TD width="11%" align=center>
<B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD width="12%" align=center>
<B><FONT size=1 face="serif">Total Assets</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Number of</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Total Assets</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Portfolio Manager</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Accounts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD colspan=3 align=left>         <center>
    <B><FONT size=1 face="serif">(in millions)</FONT></B>&nbsp;      </center>  </TD>
        <TD>&nbsp;</TD>
        <TD align=center>
<B><FONT size=1 face="serif">Accounts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">(in millions)</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Accounts</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">(in millions)</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD colspan=3>
<HR align="center" size=1 noshade>
        </TD>
        <TD></TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
      <center>
        <FONT size=1 face="serif">1</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD width="5%" align=left>
 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD width="6%" align=right>
<FONT size=1 face="serif">14,7</FONT>&nbsp;
        </TD>
        <TD width="2%">&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">T. Brooks Beittel</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">2</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right>
<FONT size=1 face="serif">495.6</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Michael Schatt</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">2</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <div align="right"><FONT size=1 face="serif">&#36;</FONT>
      </div></TD>
        <TD align=right><font size=1 face="serif">1,012.6</font>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">1</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;24.7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">10</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;234.3</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Deborah A. Jansen</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right>
<FONT size=1 face="serif">14.7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Connie M. Luecke</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>
 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right>
<FONT size=1 face="serif">14.7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Daniel J. Petrisko</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right>
<FONT size=1 face="serif">480.9</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">8</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#36;1,460.5</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=1 face="serif">Randle L. Smith</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <FONT size=1 face="serif">1</FONT>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>

 <div align="right"><FONT size=1 face="serif">&#36;</FONT>
    </div></TD>
        <TD align=right>
<FONT size=1 face="serif">14.7</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD align=right>
      <center>
        <FONT size=1 face="serif">0</FONT>&nbsp;
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=1 face="serif">0</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
<FONT size=1 face="serif">&#151;</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(1)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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 closedend
investment companies.</FONT>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(2)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(3)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">Other Accounts include, but are not limited to, individual managed accounts, separate accounts, institutional accounts, pension funds and collateralized bond obligations.</FONT>     </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">12</FONT></P>

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<A name="page_15"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=28% align=left>&nbsp;

        </TD>
        <TD width=36%>&nbsp;
        </TD>
        <TD width=36% align=center>
<B><FONT size=1 face="serif">Dollar Range of</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<B><FONT size=1 face="serif">Name of Portfolio Manager</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Equity Securities in the Fund</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">T. Brooks Beittel</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Deborah A. Jansen</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Connie M. Luecke</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;1-&#36;10,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;100,000-&#36;500,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Daniel J. Petrisko</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">None</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Michael Schatt</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">&#36;10,001-&#36;50,000</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Randle L. Smith</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
      <center>
        <FONT size=2 face="serif">None</FONT>&nbsp;
      </center></TD>
</TR>
</TABLE>
<BR>
<P>
<B><FONT size=2 face="serif">Proxy Voting Policies</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">13</FONT></P>

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<A name="page_16"></A>

<P>
<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Code of Ethics</FONT></B></P>
<P>
<FONT size=2 face="serif">Each of the Fund and the Adviser has adopted a Code of Ethics under Rule 17j-1 of the Investment</FONT></P>
<P>
<FONT size=2 face="serif">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">
<B><FONT size=2 face="serif">PORTFOLIO TRANSACTIONS AND BROKERAGE</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">14</FONT></P>

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<A name="page_17"></A>

<P>
<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT
size=2 face="serif">, 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">The Fund paid brokerage commissions in the aggregate amount of &#36;799,719, &#36;1,667,497 and &#36;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 face="serif">15</FONT></P>

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<A name="page_18"></A>

<P align="center">
<B><FONT size=2 face="serif">ADDITIONAL INFORMATION CONCERNING THE AUCTIONS FOR APS</FONT></B></P>
<P>
<B><FONT size=2 face="serif">General Securities Depository</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Concerning the Auction Agent</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Broker-Dealers</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 </FONT><FONT size=1
face="serif"><SUP> 1 </SUP>/<SUB> 4  </SUB></FONT><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">16</FONT></P>

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<A name="page_19"></A>

<P>
<B><FONT size=2 face="serif">Orders by Existing Holders and Potential Holders</FONT></B></P>
<P>
<FONT size=2 face="serif">On or prior to the submission deadline on each auction date for shares of a series of APS:</FONT></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">each beneficial owner of shares of such series may submit to its Broker-Dealer by telephone or otherwise a:</FONT>    </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">&#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>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">&#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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">&#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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">17</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;25,000. See &#147;&#151;Notification of Results; Settlement&#148; below.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Submission of Orders by Broker-Dealers to Auction Agent</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT
size=2 face="serif">, 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>    </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">18</FONT></P>

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<BR>
<TABLE border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD valign="top"><center>
      <font size=2 face="serif">(b)</font>&nbsp;
    </center></TD>
    <TD nowrap valign=top><div align="left"><font size=2 face="serif">(i)</font>&nbsp;</div></TD>
    <TD><font size=2 face="serif">any Bid for shares of such series will be considered
        valid up to and including the excess of the</font>&nbsp;<font size=2 face="serif">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></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(ii)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(iii)</FONT>&nbsp; &nbsp; &nbsp;      </TD>
        <TD>
<FONT size=2 face="serif">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>        </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD nowrap valign=top>
<FONT size=2 face="serif">(iv)</FONT>&nbsp; &nbsp; &nbsp;       </TD>
        <TD>
<FONT size=2 face="serif">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>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD colspan=2>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Determination of Sufficient Clearing Bids, Winning Bid Rate and Applicable Dividend Rate</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">19</FONT></P>

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<P>
<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of Shares</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD><font size=2 face="serif">If Sufficient Clearing Bids for shares of a series of APS have been made:</font></TD>
</TR>
<TR>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD valign=top nowrap>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
  <TD width="29" valign=top nowrap>&nbsp;</TD>
        <TD width="39" valign=top nowrap>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD width="905">
<FONT size=2 face="serif">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>   </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>     </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(d)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(e)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR></TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD width="35" valign=top nowrap>&nbsp;</TD>
        <TD width="39" valign=top nowrap>
<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD width="899">
<FONT size=2 face="serif">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>      </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
  <TD nowrap valign=top>&nbsp;</TD>
        <TD nowrap valign=top>
<FONT size=2 face="serif">(c)</FONT>&nbsp; &nbsp; &nbsp;        </TD>
        <TD>
<FONT size=2 face="serif">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>       </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR></TABLE>
<P align="center">
<FONT size=2 face="serif">20</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Notification of Results; Settlement</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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">
<B><FONT size=2 face="serif">REPURCHASE OF COMMON STOCK</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">21</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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<B><FONT size=2 face="serif">DIVIDEND REINVESTMENT PLAN</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;100, but not more than &#36;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 &#36;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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;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 face="serif">The Fund may change, suspend or terminate the plan at any time upon mailing a notice to participants.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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<B><FONT size=2 face="serif">U.S. FEDERAL INCOME TAX MATTERS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Taxation of the Fund</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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<B><FONT size=2 face="serif">The Fund&#146;s Investments</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Any recognized gain or income attributable to market discount on long-term debt obligations (</FONT><I><FONT size=2 face="serif">i.e.</FONT></I><FONT size=2 face="serif">, 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 and (ii) will constitute unrelated business taxable income to certain tax exempt investors. 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 limitation on the investment by a RIC in certain qualified PTP interests. Under the Jobs
Act, a RIC may now invest in</FONT></P>
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<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">Taxation of Shareholders</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 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>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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, 2011. 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 fewer 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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</FONT></P>
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<FONT size=2 face="serif">28</FONT></P>

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<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<BR><P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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, 2010 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 dividends 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<BR><P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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
ordinary income 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 num-</FONT></P>
<P align="center">
<FONT size=2 face="serif">29</FONT></P>

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<FONT size=2 face="serif">ber. Backup 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">Under Treasury regulations, if a shareholder recognizes a loss on a disposition of the Fund&#146;s shares of &#36;2 million or more for an individual shareholder or &#36;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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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">
<B><FONT size=2 face="serif">EXPERTS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
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<FONT size=2 face="serif">30</FONT></P>

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<B><FONT size=2 face="serif">ADDITIONAL INFORMATION</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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">
<B><FONT size=2 face="serif">FINANCIAL STATEMENTS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 WIDTH="100%"  BORDER=0 ALIGN=CENTER CELLPADDING=0 CELLSPACING=0>
    <TR>
      <TD width="3%"  VALIGN=TOP>
        <P><FONT SIZE=1>&nbsp;</FONT></P></TD>
      <TD width="4%"  VALIGN=TOP>
        <P><FONT SIZE=2>&#151;</FONT></P></TD>
      <TD width="93%"  VALIGN=TOP>
        <P><FONT SIZE=2>Report of independent registered public accountants</FONT></P></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><font size=2>&#151;</font></TD>
      <TD  VALIGN=TOP><font size=2>Schedule of Investments at December 31, 2005</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP><font size=2 face="serif">Statement of Assets and Liabilities at December 31, 2005</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP><font size=2 face="serif">Statement of Operations for the year ended December 31, 2005</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP> <font size=2 face="serif">Statement of Changes in Net Assets for the years ended December 31, 2005 and 2004</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP> <font size=2 face="serif">Statement of Cash Flows for the year ended December 31, 2005</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP><font size=2 face="serif">Notes to Financial Statements</font></TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP>&nbsp;</TD>
    </TR>
    <TR>
      <TD  VALIGN=TOP>&nbsp;</TD>
      <TD  VALIGN=TOP><FONT SIZE=2>&#151;</FONT></TD>
      <TD  VALIGN=TOP><font size=2 face="serif">Financial Highlights - Selected Per Share Data and Ratios</font></TD>
    </TR>
  </TABLE>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">31</FONT></P>

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<B><FONT size=2 face="serif">APPENDIX A</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">DNP SELECT INCOME FUND INC.</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Form of Articles Supplementary Creating Series T and Series TH of</FONT></B></P>
<P align="center">
<B><FONT size=2 face="serif">Auction Preferred Stock</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 &#36;.001 per share, liquidation preference &#36;25,000 per share, designated respectively: Auction Preferred Stock, Series T; and Auction Preferred Stock, Series TH (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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<B><FONT size=2 face="serif">DESIGNATION</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">AUCTION PREFERRED STOCK, SERIES T: A series of 4,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">AUCTION PREFERRED STOCK, SERIES TH: A series of 4,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;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 TH.&#148; Each share of Auction Preferred Stock, Series TH 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 TH shall constitute a separate series of preferred stock of the Fund, and each share of Auction Preferred Stock, Series TH shall be
identical.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">A-1</FONT></P>

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<B><FONT size=2 face="serif">TABLE OF CONTENTS</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<B><FONT size=1 face="serif">Page</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD colspan=3 align=left>
<FONT size=2 face="serif">DEFINITIONS</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-4</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">PART I.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Ranking</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Dividends</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-14</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Designation of Special Dividend Periods</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-17</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Voting Rights</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-18</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Investment Company Act Preferred Stock Asset Coverage</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-20</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Preferred Stock Basic Maintenance Coverage</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-21</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Restrictions on Dividends and Other Distributions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-22</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Redemption</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-22</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">9</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Liquidation Rights</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-25</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">10</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Certain Rating Agency Requirements and Restrictions</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-26</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">11</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <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">A-26</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <div align="left"><FONT size=2 face="serif">PART II.</FONT>
      </div></TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-27</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">1</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Orders</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-27</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">2</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Submission of Orders by Broker-Dealers to Auction Agent</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-28</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">3</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Determination of Sufficient Clearing Bids, Winning Bids Rate and Applicable Dividend Rate</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-29</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">4</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=left>
<FONT size=2 face="serif">Allocation of Shares</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-31</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">5</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Auction Agent</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-32</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">6</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Transfer of APS</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-33</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">7</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Global Certificate</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-33</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
<FONT size=2 face="serif">8</FONT>
        </TD>
        <TD align=left>
<FONT size=2 face="serif">.</FONT>&nbsp;
        </TD>
        <TD align=left>
<FONT size=2 face="serif">Force Majeure</FONT>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
        <TD align=right>
<FONT size=2 face="serif">A-33</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">A-2</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_36"></A>

<P align="center">
<B><FONT size=2 face="serif">DEFINITIONS</FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT> (4) &#147;ALL HOLD RATE&#148; means 80% of the Reference Rate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan="3" align=left>
      <center>
        <B><FONT size=1 face="serif">Credit Ratings</FONT></B>&nbsp;
      </center></TD>
        <TD width=11%>&nbsp;
        </TD>
        <TD width=22% align=left>

        </TD>
  </TR>
<TR>
        <TD colspan="3">
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD><center>
    <b><font size=1 face="serif">Applicable</font></b>    </center></TD>
  </TR>
<TR valign="bottom">
        <TD width="21%" align=center>
<B><FONT size=1 face="serif">Moody&#146;s</FONT></B>&nbsp;
        </TD>
        <TD width="21%">&nbsp;
        </TD>
        <TD width="25%" align=left>

 <center>
   <B><FONT size=1 face="serif">S&amp;P</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Percentage</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">125</FONT><FONT size=2 face="serif">%</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Aa3 to Aa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">AA- to AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">150%</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A3 to A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">A- to A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">200%</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Baa3 to Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">BBB- to BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">250%</FONT>
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Ba1 and lower</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">BB+ and lower</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">300%</FONT>
      </center></TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">A-3</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_37"></A>
<br><P><FONT size=2 face="serif">(8) &#147;APPLICABLE SPREAD&#148; means:</FONT></P>
<TABLE width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD colspan="3" align=left>
      <center>
        <B><FONT size=1 face="serif">Credit Ratings</FONT></B>&nbsp;
    </center></TD>
    <TD width=11%>&nbsp; </TD>
    <TD width=22% align=left> </TD>
  </TR>
  <TR>
    <TD colspan="3">
      <HR noshade size=1>
    </TD>
    <TD> </TD>
    <TD><center>
        <b><font size=1 face="serif">Applicable</font></b>
    </center></TD>
  </TR>
  <TR valign="bottom">
    <TD width="21%" align=center> <B><FONT size=1 face="serif">Moody&#146;s</FONT></B>&nbsp; </TD>
    <TD width="21%">&nbsp; </TD>
    <TD width="25%" align=left>
      <center>
        <B><FONT size=1 face="serif">S&amp;P</FONT></B>&nbsp;
    </center></TD>
    <TD>&nbsp; </TD>
    <TD align=center> <B><FONT size=1 face="serif">Spread</FONT></B> </TD>
  </TR>
  <TR>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD> </TD>
    <TD>
      <HR noshade size=1>
    </TD>
    <TD> </TD>
    <TD>
      <HR noshade size=1>
    </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">Aaa</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">AAA</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <center>
        <FONT size=2 face="serif">125</FONT><FONT size=2 face="serif"> bps</FONT>
      </center></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">Aa3 to Aa1</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">AA- to AA+</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <center>
        <FONT size=2 face="serif">150 bps</FONT>
      </center></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">A3 to A1</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">A- to A+</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <center>
        <FONT size=2 face="serif">200 bps</FONT>
      </center></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">Baa3 to Baa1</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">BBB- to BBB+</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <center>
        <FONT size=2 face="serif">250 bps</FONT>
      </center></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">Ba1 and lower</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">BB+ and lower</FONT>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <center>
        <FONT size=2 face="serif">300 bps</FONT>
      </center></TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(10) &#147;APS&#148; shall have the meaning set forth on the first page of these Articles Supplementary.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(11) &#147;AUCTION&#148; means each periodic implementation of the Auction Procedures.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(15) &#147;AUCTION PROCEDURES&#148; means the procedures for conducting Auctions set forth in Part II of these Articles Supplementary.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(20) &#147;BOARD OF DIRECTORS&#148; means the Board of Directors of the Fund or any duly authorized committee thereof.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 UBS Securities LLC, which consent shall not be unreasonably
withheld or delayed) and has entered into a Broker-Dealer Agreement that remains effective.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">A-4</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_38"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(24) &#147;CODE&#148; means the Internal Revenue Code of 1986, as amended.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(25) &#147;COMMON STOCK&#148; means the common stock, par value &#36;.001 per share, of the Fund.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(35) &#147;FITCH&#148; means Fitch, Inc. and its successors at law.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(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>
&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">A-5</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_39"></A>

<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(44) &#147;INVESTMENT COMPANY ACT&#148; means the Investment Company Act of 1940, as amended from time to time.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(48) &#147;LIBOR&#148; means the London Interbank Offered Rate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(49) &#147;LIBOR DEALERS&#148; means UBS Securities LLC 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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">A-6</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_40"></A>

<P>
<FONT size=2 face="serif">single transaction in such market at such time by reference to the principal London offices of leading banks in the London interbank market; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2
face="serif">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; </FONT><I><FONT size=2 face="serif">provided, further, </FONT></I><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(51) &#147;LIQUIDATION PREFERENCE,&#148; with respect to a given number of shares of a series of APS, means &#36;25,000 times that number.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(52) &#147;LONDON BUSINESS DAY&#148; means any day on which commercial banks are generally open for business in London.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 width="70%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=22% align=left>&nbsp;

        </TD>
        <TD width=8%>&nbsp;
        </TD>
        <TD width=21% align=left>&nbsp;

        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=25% align=center>
<B><FONT size=1 face="serif">Applicable</FONT></B>
        </TD>
        <TD width=2%>&nbsp;
        </TD>
        <TD width=18% align=left>

        </TD>
  </TR>
<TR valign="bottom">
        <TD colspan="3" align=left>       <center>
            <b><font size=1 face="serif">Credit Ratings</font></b>&nbsp;

          </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center><b><font size=1 face="serif">Percentage</font></b>
</TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>&nbsp;
</TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD><HR align="center" size=1 noshade>
        </TD>
        <TD>
<HR align="center" size=1 noshade>
        </TD>
        <TD>
        </TD>
        <TD><center>
    <b><font size=1 face="serif">of the</font></b>        </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD><center>
    <b><font size=1 face="serif">Applicable</font></b>    </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=1 face="serif">Moody&#146;s</FONT></B>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <center>
          <B><FONT size=1 face="serif">S&amp;P</FONT></B>&nbsp;
    </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Reference Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Spread</FONT></B>
        </TD>
  </TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">125</FONT><FONT size=2 face="serif">%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">125 bps</FONT>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Aa3 to Aa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">AA- to AA+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">150%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">150 bps</FONT>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">A3 to A1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">A- to A+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">200%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">200 bps</FONT>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Baa3 to Baa1</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">BBB- to BBB+</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">250%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">250 bps</FONT>&nbsp;
      </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left>
<FONT size=2 face="serif">Ba1 and lower</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT size=2 face="serif">BB+ and lower</FONT>&nbsp;
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">300%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">300 bps</FONT>&nbsp;
      </center></TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 width="70%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=20% align=left>

        </TD>
        <TD width=3%>&nbsp;
        </TD>
        <TD width=23% align=center>
<B><FONT size=1 face="serif">Maximum</FONT></B>
        </TD>
        <TD width=5%>&nbsp;
        </TD>
        <TD width=23% align=center>
<B><FONT size=1 face="serif">Maximum</FONT></B>
        </TD>
        <TD width=4%>&nbsp;
        </TD>
        <TD width=22% align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Dividend</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Dividend Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=left>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Rate Using</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Using the</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Method Used</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>

        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">the Applicable</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Applicable</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">to Determine</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=1 face="serif">Reference</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Percentage of the</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Spread Over the</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">the Maximum</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center>
<B><FONT size=1 face="serif">Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Reference Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Reference Rate</FONT></B>
        </TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<B><FONT size=1 face="serif">Dividend Rate</FONT></B>&nbsp;
        </TD>
</TR>
<TR>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
        <TD>
        </TD>
        <TD>
<HR noshade size=1>
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">1%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">1.25%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">2.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">2%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">2.50%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">3.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">3%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">3.75%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">4.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">4%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">5.00%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">5.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">5%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">6.25%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">6.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Either</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=right>
      <center>
        <FONT size=2 face="serif">6%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">7.50%</FONT>
      </center></TD>
        <TD>
          <center>
    </center></TD>
        <TD align=right>
      <center>
        <FONT size=2 face="serif">7.25%</FONT>
      </center></TD>
        <TD>&nbsp;
        </TD>
        <TD align=center>
<FONT size=2 face="serif">Percentage</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT size=2 face="serif">A-7</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(55) &#147;MOODY&#146;S&#148; means Moody&#146;s Investors Service, Inc., a Delaware corporation, and its successors.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2
face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">A-8</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(70) &#147;PREFERRED DIRECTOR&#148; means the Initial Preferred Directors and the Subsequent Preferred Directors.</FONT></P>
<P>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(71) &#147;PREFERRED STOCK&#148; means the preferred stock, par value &#36;.001 per share, of the Fund.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(77) &#147;REFERENCE BANKS&#148; means four major banks in the London interbank market selected by UBS Securities LLC or its affiliates or successors or such other party as the Fund may from
time to tome appoint.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that any of the</FONT></P>
<P align="center">
<FONT size=2 face="serif">A-9</FONT></P>

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<P>
<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that if any Subsequent Dividend Period is also a Special Dividend Period, such</FONT></P>
<P align="center">
<FONT size=2 face="serif">A-10</FONT></P>

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<P>
<FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that none of such entities shall be a U.S. Government Securities Dealer.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
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<FONT size=2 face="serif">A-11</FONT></P>

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<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">&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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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 face="serif">A-12</FONT></P>
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<P align="center"> <B><FONT size=2 face="serif">PART I.</FONT></B></P>
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  <TR valign="bottom">
    <TD width="2%" align=right> <B><FONT size=2 face="serif">1</FONT></B> </TD>
    <TD width="2%" align=left> <B><FONT size=2 face="serif">.</FONT></B>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><B><FONT size=2 face="serif">Ranking.</FONT></B>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=right>
      <div align="left">&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a) The shares of a series of APS shall rank on a parity with each other, with shares of any other series</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">of APS and with shares of any other series of Preferred Stock as to the payment of dividends by the Fund</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">and as to the distribution of assets upon dissolution, liquidation or winding up of the affairs of the Fund.</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;(b) No Holder of shares of any series of APS shall have, solely by reason of being such a Holder, any</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">preemptive right or, unless otherwise determined by the Board of Directors, any other right to acquire, pur-</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">chase or subscribe for any shares of Preferred Stock or Common Stock or other securities of the Fund which</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">the Fund may hereafter issue or sell.</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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  <TR valign="bottom">
    <TD align=right> <B><FONT size=2 face="serif">2</FONT></B> </TD>
    <TD align=left> <B><FONT size=2 face="serif">.</FONT></B>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><B><FONT size=2 face="serif">Dividends.</FONT></B>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;(a) </FONT><I><FONT size=2 face="serif">Cumulative Cash Dividends. </FONT></I><FONT size=2 face="serif">The Holders of shares of a series of APS shall be entitled to receive,</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">when, as and if declared by the Board of Directors, out of funds legally available therefor in accordance with</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">the Charter and applicable law, cumulative cash dividends at the Applicable Dividend Rate for shares of such</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">series, determined as set forth in paragraph (d) of this Section 2, and no more, payable on the Dividend</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Payment Dates with respect to shares of such series determined pursuant to paragraph (c) of this Section 2.</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Holders of shares of a series of APS shall not be entitled to any dividend, whether payable in cash, property</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">or shares, in excess of full cumulative dividends, as herein provided, on shares of such series. No interest, or</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">sum of money in lieu of interest, shall be payable in respect of any dividend payment or payments on shares</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">of a series of APS which may be in arrears, and, except to the extent set forth in subparagraph (d)(i) of this</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Section 2, no additional sum of money shall be payable in respect of any such arrearage.</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;(b) </FONT><I><FONT size=2 face="serif">Dividends Cumulative From Date of Original Issue. </FONT></I><FONT size=2 face="serif">Dividends on shares of a series of APS shall</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">accumulate at the Applicable Dividend Rate for shares of such series from the Date of Original Issue thereof.</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;(c) </FONT><I><FONT size=2 face="serif">Dividend Payment Dates and Adjustment Thereof. </FONT></I><FONT size=2 face="serif">The Dividend Payment Dates with respect to</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">shares of a series of APS shall be the Initial Dividend Payment Date with respect to such series and each</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Subsequent Dividend Payment Day with respect to such series thereafter; provided, however, that:</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD width="6%" align=left>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT></div></TD>
    <TD width="88%" align=left><font size=2 face="serif"> if the day on which dividends would otherwise be payable on shares of such series is not a</font>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">Business Day, then such dividends shall be payable on such shares on the first Business Day that falls</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">after such day; and</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
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      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)</FONT></div></TD>
    <TD align=right><div align="left"><font size=2 face="serif"> the Fund in its discretion may establish the Dividend Payment Dates in respect of any Special</font>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">Dividend Period of shares of a series of APS consisting of more than 28 days; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
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      <div align="left"><FONT size=2 face="serif">such dates shall be set forth in the Notice of Special Dividend Period relating to such Special Dividend</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
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      <div align="left"><FONT size=2 face="serif">Period, as delivered to the Auction Agent, which Notice of Special Dividend Period shall be filed with</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
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      <div align="left"><FONT size=2 face="serif">the Secretary of the Fund; and </FONT><I><FONT size=2 face="serif">provided, further, </FONT></I><FONT size=2 face="serif">that (A) any such Dividend Payment Date shall be a</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">Business Day and (B) the last Dividend Payment Date in respect of such Special Dividend Period shall</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">be the Business Day immediately following the last day thereof.</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">(d) </FONT><I><FONT size=2 face="serif">Dividend Rates and Calculation of Dividends.</FONT></I>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) </FONT><I><FONT size=2 face="serif">Dividend Rates. </FONT></I><FONT size=2 face="serif">The dividend rate on shares of a series of APS during the period from and</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">after the Date of Original Issue of shares of such series to and including the last day of the Initial</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Dividend Period of shares of such series shall be equal to the Initial Dividend Rate. For each</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">Subsequent Dividend Period of shares of such series thereafter, the dividend rate on shares of such</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=center>
      <div align="left"><FONT size=2 face="serif">series shall be equal to the rate per annum that results from an Auction for shares of such series on the</FONT>&nbsp; </div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left>
      <div align="left"><FONT size=2 face="serif">Auction Date next preceding such Subsequent Dividend Period; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that if:</FONT>&nbsp; </div></TD>
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    <TD colspan=5>&nbsp; </TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> </TD>
    <TD align=left><div align="left"><font size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) an Auction for any such Subsequent Dividend Period is not held for any reason other</font></div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> </TD>
    <TD align=left> <font size=2 face="serif">than as described below and in Section 8 of Part II, the dividend rate on shares of such series for</font>&nbsp;
        <div align="left"> </div></TD>
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    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left></TD>
    <TD align=left><font size=2 face="serif">such Subsequent Dividend Period will be the Maximum Dividend Rate for shares of such series on</font></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <div align="left">&nbsp; </div></TD>
    <TD align=right><div align="left"><font size=2 face="serif">the Auction Date therefor;</font>&nbsp;</div></TD>
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    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD colspan="2" align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;
        <div align="left"> </div></TD>
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<BR>
<P align="center"> <FONT size=2 face="serif">A-13</FONT></P>
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<PAGE> <A name="page_47"></A>
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    <TD width=12% align=center>&nbsp;</TD>
    <TD width=88% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) any Failure to Deposit shall have occurred with respect to shares of such series during</FONT>&nbsp; </div></TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">any Initial Dividend Period or Subsequent Dividend Period thereof (other than any Special</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period consisting of more than 364 days or any Subsequent Dividend Period succeeding</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">any Special Dividend Period consisting of more than 364 days during which a Failure to Deposit</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">occurred that has not been cured), but, prior to 12:00 Noon, New York City time, on the third</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Business Day next succeeding the date on which such Failure to Deposit occurred, such Failure to</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Deposit shall have been cured in accordance with paragraph (e) of this Section 2 and the Fund</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">shall have paid to the Auction Agent a late charge (&#147;Late Charge&#148;) equal to the sum of (1) if such</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Failure to Deposit consisted of the failure timely to pay to the Auction Agent the full amount of</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">dividends with respect to any Dividend Period of the shares of such series, an amount computed</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">by multiplying (x) 200% of the Reference Rate for the Initial Dividend Period or Subsequent</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period during which such Failure to Deposit occurs on the Dividend Payment Date for</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">such Dividend Period by (y) a fraction, the numerator of which shall be the number of days for</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">which such Failure to Deposit has not been cured in accordance with paragraph (e) of this Section</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">2 (including the day such Failure to Deposit occurs and excluding the day such Failure to Deposit</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">is cured) and the denominator of which shall be 360, and applying the rate obtained against the</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">aggregate Liquidation Preference of the outstanding shares of such series and if such Failure to</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Deposit consisted of the failure timely to pay to the Auction Agent the Redemption Price of the</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">shares, if any, of such series for which Notice of Redemption has been mailed by the Fund pur-</FONT>&nbsp; </TD>
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  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">suant to paragraph (c) of Section 8 of this Part I, an amount computed by multiplying (x) 300% of</FONT>&nbsp; </TD>
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  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">the Reference Rate for the Initial Dividend Period or Subsequent Dividend Period during which</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">such Failure to Deposit occurs on the redemption date by (y) a fraction, the numerator of which</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">shall be the number of days for which such Failure to Deposit is not cured in accordance with</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">paragraph (e) of this Section 2 (including the day such Failure to Deposit occurs and excluding the</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">day such Failure to Deposit is cured) and the denominator of which shall be 360, and applying the</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">rate obtained against the aggregate Liquidation Preference of the outstanding shares of such series</FONT>&nbsp; </TD>
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    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">to be redeemed, no Auction will be held in respect of shares of such series for the Subsequent</FONT>&nbsp; </TD>
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  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period thereof and the dividend rate for shares of such series for such Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period will be the Maximum Dividend Rate for shares of such series on the Auction</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Date for such Subsequent Dividend Period;</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) any Failure to Deposit shall have occurred with respect to shares of such series during</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">any Initial Dividend Period or Subsequent Dividend Period thereof (other than any Special</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period consisting of more than 364 days or any Subsequent Dividend Period succeeding</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">any Special Dividend Period consisting of more than 364 days during which a Failure to Deposit</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">occurred that has not been cured), and, prior to 12:00 Noon, New York City time, on the third</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Business Day next succeeding the date on which such Failure to Deposit occurred, such Failure to</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Deposit shall not have been cured in accordance with paragraph (e) of this Section 2 or the Fund</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">shall not have paid the applicable Late Charge to the Auction Agent, no Auction will be held in</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">respect of shares of such series for the first Subsequent Dividend Period thereof thereafter (or for</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">any Subsequent Dividend Period thereof thereafter to and including the Subsequent Dividend</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Period during which (1) such Failure to Deposit is cured in accordance with paragraph (e) of this</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Section 2 and (2) the Fund pays the applicable Late Charge to the Auction Agent (the condition set</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">forth in this clause (2) to apply only in the event S&amp;P is rating such shares at the time the Fund</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">cures such Failure to Deposit), in each case no later than 12:00 Noon, New York City time, on the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">fourth Business Day prior to the end of such Subsequent Dividend Period), and the dividend rate</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">for shares of such series for each such Subsequent Dividend Period shall be a rate per annum equal</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">to the Maximum Dividend Rate for shares of such series on the Auction Date for such Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period (but with the prevailing rating for shares of such series, for purposes of determin-</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">ing such Maximum Dividend Rate, being deemed to be below BBB-); or</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=center>&nbsp;</TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">&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</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Special Dividend Period thereof consisting of more than 364 days, or during any Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Period thereof succeeding any Special Dividend Period consisting of more than 364 days</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left>&nbsp;</TD>
    <TD align=left> <FONT size=2 face="serif">during which a Failure to Deposit occurred that has not been cured, and, prior to 12:00 Noon, New</FONT>&nbsp; </TD>
  </TR>
</TABLE>
<BR>
<P align="center"> <FONT size=2 face="serif">A-14</FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE> <A name="page_48"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">York City time, on the fourth Business Day preceding the Auction Date for the Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Dividend Period next succeeding such Subsequent Dividend Period, such Failure to Deposit shall</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">not have been cured in accordance with paragraph (e) of this Section 2 or, in the event S&amp;P is then</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">rating such shares, the Fund shall not have paid the applicable Late Charge to the Auction Agent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(such Late Charge, for purposes of this subparagraph (D), to be calculated by using, as the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Reference Rate, the Reference Rate applicable to a Special Dividend Period (x) consisting of more</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">than 182 days but fewer than 365 days and (y) commencing on the date on which the Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Dividend Period during which Failure to Deposit occurs commenced), no Auction will be held in</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">respect of shares of such series for such Subsequent Dividend Period (or for any Subsequent</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Dividend Period thereof thereafter to and including the Subsequent Dividend Period during which</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(1) such Failure to Deposit is cured in accordance with paragraph (e) of this Section 2 and (2) the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Fund pays the applicable Late Charge to the Auction Agent (the condition set forth in this clause (2)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">to apply only in the event S&amp;P is rating such shares at the time the Fund cures such Failure to</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Deposit), in each case no later than 12:00 Noon, New York City time, on the fourth Business Day</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">prior to the end of such Subsequent Dividend Period), and the dividend rate for shares of such series</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">for each such Subsequent Dividend Period shall be a rate per annum equal to the Maximum</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Dividend Rate for shares of such series on the Auction Date for such Subsequent Dividend Period</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(but with the prevailing rating for shares of such series, for purposes of determining such Maximum</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Dividend Rate, being deemed to be below BBB-) (the rate per annum at which dividends are</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">payable on shares of a series of APS for any Initial Dividend Period or Subsequent Dividend Period</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">thereof being herein referred to as the &#147;Applicable Dividend Rate&#148; for shares of such series).</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(ii) </FONT><I><FONT size=2 face="serif">Calculation of Dividends. </FONT></I><FONT size=2 face="serif">The amount of dividends per share payable on shares of a series of</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>APS on any date on which dividends shall be payable on shares of such series shall be computed by</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>multiplying the Applicable Dividend Rate for shares of such series in effect for such Dividend Period or</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>Dividend Periods or part thereof for which dividends have not been paid by a fraction, the numerator of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>which shall be the number of days in such Dividend Period or Dividend Periods or part thereof and the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif"></FONT>denominator of which shall be 365 if such Dividend Period is a Standard Dividend Period and 360 in</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; &nbsp; <FONT size=2 face="serif">all other cases, and applying the rate obtained against &#36;25,000.</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=right>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp;(e) </FONT><I><FONT size=2 face="serif">Curing a Failure to Deposit. </FONT></I><FONT size=2 face="serif">A Failure to Deposit with respect to shares of a series of APS shall have</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">been cured (if such Failure to Deposit is not solely due to the willful failure of the Fund to make the required</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">payment to the Auction Agent) with respect to any Initial Dividend Period or Subsequent Dividend Period of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">shares of such series if, within the respective time periods described in subparagraph (d)(i) of this Section 2, the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">Fund shall have paid to the Auction Agent (A) all accumulated and unpaid dividends on shares of such series</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left>
      <div align="left"><FONT size=2 face="serif">and (B) without duplication, the Redemption Price for shares, if any, of such series for which Notice of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left>
      <div align="left"><FONT size=2 face="serif">Redemption has been mailed by the Fund pursuant to paragraph (c) of Section 8 of Part I of these Articles</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">Supplementary; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that the foregoing clause (B) shall not apply to the Fund&#146;s failure to pay the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">Redemption Price in respect of shares of a series of APS when the related Redemption Notice provides that</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">redemption of such shares is subject to one or more conditions precedent until any such condition precedent</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">shall not have been satisfied at the time or times and in the manner specified in such Notice of Redemption.</FONT>&nbsp; </div></TD>
  </TR>
  <TR>
    <TD>
      <div align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp;(f) </FONT><I><FONT size=2 face="serif">Dividend Payments by Fund to Auction Agent. </FONT></I><FONT size=2 face="serif">The Fund shall pay to the Auction Agent, not later</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left>
      <div align="left"><FONT size=2 face="serif">than 12:00 Noon, New York City time, on each Dividend Payment Date for shares of a series of APS, an</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">aggregate amount of same day funds, equal to the dividends to be paid to all Holders of shares of such series</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=left>
      <div align="left"><FONT size=2 face="serif">on such Dividend Payment Date.</FONT>&nbsp; </div></TD>
  </TR>
  <TR>
    <TD>
      <div align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp; &nbsp; &nbsp;(g) </FONT><I><FONT size=2 face="serif">Auction Agent as Trustee of Dividend Payments by Fund. </FONT></I><FONT size=2 face="serif">All moneys paid to the Auction Agent</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">for the payment of dividends (or for the payment of any Late Charge) shall be held in trust for the payment</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">of such dividends (and any such Late Charge) by the Auction Agent for the benefit of the Holders specified</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">in paragraph (h) of this Section 2. Any moneys paid to the Auction Agent in accordance with the foregoing</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">but not applied by the Auction Agent to the payment of dividends (and any such Late Charge) will, to the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">extent permitted by law and upon written request be repaid to the Fund at the end of 90 days from the date</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">on which such moneys were so to have been applied. Dividends Paid to Holders. Each dividend on shares of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">a series of APS shall be paid on the Dividend Payment Date therefor to the Holders thereof as their names</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD width=99% align=center>
      <div align="left"><FONT size=2 face="serif">appear on the record books of the Fund on the Business Day next preceding such Dividend Payment Date.</FONT>&nbsp; </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center"> <FONT size=2 face="serif">A-15</FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE> <A name="page_49"></A>
<TABLE border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="34">&nbsp;</TD>
    <TD valign=top nowrap> <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT>&nbsp; <I><FONT size=2 face="serif">Dividends
            Credited Against Earliest Accumulated but Unpaid Dividends. </FONT></I><FONT size=2 face="serif">Any
    dividend payment</FONT></div></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD> <FONT size=2 face="serif">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> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top> <B><FONT size=2 face="serif">3.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <B><FONT size=2 face="serif">Designation of Special Dividend Periods.</FONT></B> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top nowrap> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT> <I><FONT size=2 face="serif">Length
          of and Preconditions for Special Dividend Period. </FONT></I><FONT size=2 face="serif">The
          Fund, at its option, may designate</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD> <FONT size=2 face="serif">any succeeding Subsequent Dividend Period of shares of a series of APS as a Special Dividend Period con- sisting of a specified number of days evenly divisible by seven and not more than 1,820 (a &#147;Special Dividend Period&#148;); </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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 rat- ing the APS) and S&amp;P (if S&amp;P is then rating such series) with such documents as it may request.</FONT> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top nowrap> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT> <I><FONT size=2 face="serif">Notice
          of Proposed Special Dividend Period. </FONT></I><FONT size=2 face="serif">If
          the Fund proposes to designate any succeeding</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD> <FONT size=2 face="serif">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> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top nowrap> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT> <I><FONT size=2 face="serif">Notice
          of Special Dividend Period. </FONT></I><FONT size=2 face="serif">No
          later than 11:00 a.m., New York City time, on the second</FONT> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD> <FONT size=2 face="serif">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> </TD>
  </TR>
  <TR>
    <TD height="23">&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><font size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) 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></td>
  </tr>
</table>
<P> &nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"> </FONT></P>
<P align="center"> <FONT size=2 face="serif">A-16</FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE> <A name="page_50"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">rating on the APS, (D) the scheduled Dividend Payment Dates for shares of such series during such</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Special Dividend Period and (E) the Special Redemption Provisions, if any, applicable to shares of such</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">series in respect of such Special Dividend Period, such notice to be accompanied by a Preferred Stock</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Basic Maintenance Report showing that, as of the third Business Day next preceding such proposed</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Special Dividend Period, Moody&#146;s Eligible Assets (if Moody&#146;s is then rating the APS) and S&amp;P Eligible</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Assets (if S&amp;P is then rating such series) each have an aggregate Discounted Value at least equal to the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Preferred Stock Basic Maintenance Amount as of such Business Day (assuming for purposes of the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">foregoing calculation that the Maximum Dividend Rate is the Maximum Dividend Rate on such</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Business Day as if such Business Day were the Auction Date for the proposed Special Dividend</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Period); or (ii) a notice stating that the Fund has determined not to exercise its option to designate a</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">Special Dividend Period of shares of such series and that the next Subsequent Dividend Period of</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">shares of such series shall be a Standard Dividend Period.</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(d) </FONT><I><FONT size=2 face="serif">Failure to Deliver Notice of Special Dividend Period. </FONT></I><FONT size=2 face="serif">If the Fund fails to deliver either of the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">notices described in subparagraphs (c)(i) or (c)(ii) of this Section 3 (and, in the case of the notice described in</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">subparagraph (c)(i) of this Section 3, a Preferred Stock Basic Maintenance Report to the effect set forth in</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">such subparagraph (if either Moody&#146;s or S&amp;P is then rating the series in question)) with respect to any desig-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">nation of any proposed Special Dividend Period to the Auction Agent by 11:00 a.m., New York City time, on</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">the second Business Day next preceding the first day of such proposed Special Dividend Period (or by such</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">later time or date, or both, as may be agreed to by the Auction Agent), the Fund shall be deemed to have deliv-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">ered a notice to the Auction Agent with respect to such Special Dividend Period to the effect set forth in sub-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">paragraph (c)(ii) of this Section 3. In the event the Fund delivers to the Auction Agent a notice described in</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">subparagraph (c)(i) of this Section 3, it shall file a copy of such notice with the Secretary of the Fund, and the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">contents of such notice shall be binding on the Fund. In the event the Fund delivers to the Auction Agent a</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">notice described in subparagraph (c)(ii) of this Section 3, the Fund will provide Moody&#146;s (if Moody&#146;s is then</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">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>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right> <B><FONT size=2 face="serif">4</FONT></B> </TD>
    <TD align=left> <B><FONT size=2 face="serif">.</FONT></B>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <B><FONT size=2 face="serif">Voting Rights.</FONT></B>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(a) </FONT><I><FONT size=2 face="serif">One Quarter of a Vote Per Share of APS. </FONT></I><FONT size=2 face="serif">Except as otherwise provided in the Charter or as other-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">wise required by law, (i) each Holder of shares of a series of APS shall be entitled to one quarter of a vote for</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">each such share held by such Holder on each matter submitted to a vote of shareholders of the Fund, and (ii)</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">the holders of shares of Preferred Stock, including shares of each series of APS, and the holders of shares of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">Common Stock shall vote together as a single class; provided, however, that, at any meeting of the sharehold-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">ers of the Fund held for the election of directors, the holders of shares of Preferred Stock, including shares of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">each series of APS, represented in person or by proxy at said meeting, shall be entitled, as a class, to the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">exclusion of the holders of all other securities and classes of stock of the Fund, to elect a director to succeed</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">any Preferred Director whose term is expiring or whose seat on the Board of Directors is vacant, each share of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">any series of APS entitling the holder thereof to one quarter of a vote. Subject to paragraph (b) of this Section</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">4, the holders of the outstanding shares of Common Stock shall be entitled, as a class, to the exclusion of the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">holders of all other securities and classes of stock of the Fund, to elect the balance of the directors.</FONT>&nbsp; </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(b) </FONT><I><FONT size=2 face="serif">Voting For Additional Directors.</FONT></I>&nbsp; </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"> &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;&nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT size=2 face="serif">(i) </FONT><I><FONT size=2 face="serif">Voting Period. </FONT></I><FONT size=2 face="serif">Except as otherwise provided in the Charter or as otherwise required by law,</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">during any period in which any one or more of the conditions described in clauses (A) or (B) of this</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">subparagraph (b)(i) shall exist (such period being referred to herein as a &#147;Voting Period&#148;), the number</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">of directors constituting the Board of Directors shall be automatically increased by the smallest number</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">that, when added to the two directors elected exclusively by the holders of shares of Preferred Stock,</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">including shares of each series of APS, would constitute a majority of the Board of Directors as so</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">increased by such smallest number, and the holders of shares of Preferred Stock, including shares of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">each series of APS, shall be entitled, voting as a class on a one-vote-per-share basis (to the exclusion of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">the holders of all other securities and classes of stock of the Fund), to elect such smallest number of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">additional directors, together with the two directors that such holders are in any event entitled to elect.</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">A Voting Period shall commence:</FONT>&nbsp; </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center"> <FONT size=2 face="serif">A-17</FONT></P>
<HR noshade  width="100%" size=4>
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<PAGE> <A name="page_51"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="2%" align=left> </TD>
    <TD width="2%" align=left>&nbsp; </TD>
    <TD width="6%">&nbsp; </TD>
    <TD width="90%" align=left>
      <div align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left">&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(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></div></TD>
  </TR>
</TABLE>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="1%" align=left> </TD>
    <TD width="1%" align=left>&nbsp; </TD>
    <TD width="5%">&nbsp; </TD>
    <TD width="93%" align=left>
      <div align="left">&nbsp;&nbsp;<FONT size=2 face="serif">(ii) </FONT><I><FONT size=2 face="serif">Notice of Special Meeting. </FONT></I><FONT size=2 face="serif">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></div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;<FONT size=2 face="serif">(ii) </FONT><I><FONT size=2 face="serif">Notice of Special Meeting. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii) </FONT><I><FONT size=2 face="serif">Terms of Office of Existing Directors. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><font size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left><FONT size=2 face="serif">(c) </FONT><I><FONT size=2 face="serif">Holders of APS to Vote on Certain Other Matters.</FONT></I></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i) </FONT><I><FONT size=2 face="serif">Capitalization Matters. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
</TABLE>
<P align="center"><FONT size=2 face="serif">A-18</FONT></P>
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  <TR valign="bottom">
    <TD width="1%" align=left></TD>
    <TD width="4%" align=left>&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="92%" align=left><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) </FONT><I><FONT size=2 face="serif">Investment Company Act Matters. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii) </FONT><I><FONT size=2 face="serif">Separate Class Voting. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iv) </FONT><I><FONT size=2 face="serif">Voting by Series. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">
      <P> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) </FONT><I><FONT size=2 face="serif">Voting
            Rights Set Forth Herein Are Sole Voting Rights. </FONT></I><FONT size=2 face="serif">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 valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(e) </FONT><I><FONT size=2 face="serif">No
          Preemptive Rights Or Cumulative Voting. </FONT></I><FONT size=2 face="serif">The
          Holders of shares of any series of APS shall have no preemptive rights
          or rights to cumulative voting. </FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(f) </FONT><I><FONT size=2 face="serif">Voting
          For Directors Sole Remedy For Fund&#146;s Failure To Pay Dividends. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(g) </FONT><I><FONT size=2 face="serif">Holders
          Entitled To Vote. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD colspan="3" align=left><b><font size=2 face="serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</font></b><b><font size=2 face="serif"> Investment Company Act Preferred Stock Asset Coverage. </font></b></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD colspan="3" align=left><font size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"><FONT size=2 face="serif">A-19</FONT></P>
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  <TR>
    <TD width="34" valign=top nowrap> <B><FONT size=2 face="serif">6.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <B><FONT size=2 face="serif">Preferred Stock Basic Maintenance Coverage.</FONT></B> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT> <FONT size=2 face="serif">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 aggre- gate 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>  </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT size=2 face="serif"> 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 tran- scription 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> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD valign=top> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)</FONT> <FONT size=2 face="serif">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</FONT> <FONT size=2 face="serif">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 info rmation 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 pur- poses 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 pro- vide
        a listing in its letter of such differences) (such confirmation is herein
        called the &#147;Accountant&#146;s Co nfirmation&#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> </TD>
  </TR>
  <TR>
    <TD colspan=2>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"> <FONT size=2 face="serif">A-20</FONT></P>
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  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">Stock Basic Maintenance Report to the Auction Agent and Paying Agent promptly following receipt by the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">Auction Agent and the Paying Agent of such Accountant&#146;s Confirmation.</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right> <B><FONT size=2 face="serif">7</FONT></B> </TD>
    <TD align=left> <B><FONT size=2 face="serif">.</FONT></B>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <B><FONT size=2 face="serif">Restrictions on Dividends and Other Distributions.</FONT></B>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=right>
      <div align="left">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a) For so long as any share of APS is outstanding, the Fund shall not declare, pay or set apart for pay-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">ment any dividend or other distribution (other than a dividend or distribution paid in shares of, or options,</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">warrants or rights to subscribe for or purchase, Common Stock or other stock, if any, ranking junior to the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">shares of APS as to dividends or upon liquidation) in respect of the Common Stock or any other stock of the</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">Fund ranking junior to or on a parity with the shares of APS as to dividends or upon liquidation, or call for</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">redemption, redeem, purchase or otherwise acquire for consideration any shares of the Common Stock or</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">any other such junior stock (except by conversion into or exchange for stock of the Fund ranking junior to</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">the shares of APS as to dividends and upon liquidation) or any other such parity stock (except by conversion</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">into or exchange for stock of the Fund ranking junior to or on a parity with the shares of APS as to dividends</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">and upon liquidation), unless (A) immediately after such transaction, the Preferred Stock Basic Maintenance</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">Amount and the Investment Company Act Preferred Stock Asset Coverage would be achieved, (B) full</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">cumulative dividends on shares of APS and shares of other Preferred Stock ranking on a parity with the APS</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">with respect to the payment of dividends and the distribution of assets upon dissolution, liquidation or wind-</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">ing up of the affairs of the Fund due on or prior to the date of the transaction have been declared and paid or</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">shall have been declared and sufficient funds for the payment thereof deposited with the Paying Agent, (C)</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">the Fund has redeemed the full number of shares of APS required to be redeemed by any provision for</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">mandatory redemption contained herein.</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(b) When dividends are not paid in full upon the shares of each series of APS through its most recent</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">Dividend Payment Date or upon the shares of any other class or series of stock of the Fund ranking on a par-</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">ity with the APS as to the payment of dividends through their most recent respective dividend payment</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">dates, all dividends declared upon the shares of each series of APS and the shares of any other such class or</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">series of stock ranking on a parity with the APS as to the payment of dividends shall be declared pro rata so</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">that the amount of dividends declared per share on each series of APS and such other class or series of stock</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">shall in all cases bear to each other the same ratio that accumulated dividends per share on such series of</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">APS and such other class or series of stock bear to each other (for purposes of this sentence, the amount of</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">dividends declared per share on each series of APS shall be based on the Applicable Dividend Rate for such</FONT>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <FONT size=2 face="serif">share for the Dividend Periods during which dividends were not paid in full).</FONT>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=right> <B><FONT size=2 face="serif">8</FONT></B> </TD>
    <TD align=left> <B><FONT size=2 face="serif">.</FONT></B>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left> <B><FONT size=2 face="serif">Redemption.</FONT></B>&nbsp; </TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">(a) </FONT><I><FONT size=2 face="serif">Optional Redemption.</FONT></I>&nbsp; </div></TD>
  </TR>
  <TR>
    <TD colspan=4>&nbsp; </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT>(i) Subject to the provisions of subparagraph (v) of this paragraph (a), shares of any series of</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">APS may be redeemed, at the option of the Fund, as a whole or from time to time in part, on any</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">Dividend Payment Date for shares of such series, out of funds legally available therefor, at a redemp-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">tion price per share equal to the sum of &#36;25,000 plus an amount equal to accumulated but unpaid divi-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">dends thereon (whether or not earned or declared) to (but not including) the date fixed for redemption;</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that (1) shares of a series of APS may not be redeemed in part if after such partial</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">redemption fewer than 300 shares of such series remain outstanding; (2) shares of a series of APS are</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">redeemable by the Fund during the Initial Dividend Period thereof only on the second Business Day</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">next preceding the last Dividend Payment Date for such Initial Dividend Period; and (3) subject to sub-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">paragraph (ii) of this paragraph (a), the Notice of Special Dividend Period relating to a Special</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">Dividend Period of shares of a series of APS, as delivered to the Auction Agent and filed with the</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">Secretary of the Fund, may provide that shares of such series shall not be redeemable during the whole</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">or any part of such Special Dividend Period (except as provided in subparagraph of this paragraph (a))</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=center>
      <div align="left"><FONT size=2 face="serif">or shall be redeemable during the whole or any part of such Special Dividend Period only upon pay-</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">ment of such redemption premium or premiums as shall be specified in such notice (&#147;Special</FONT>&nbsp; </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"><FONT size=2 face="serif">Redemption Provisions&#148;).</FONT>&nbsp; </div></TD>
  </TR>
</TABLE>
<BR>
<P align="center"> <FONT size=2 face="serif">A-21</FONT></P>
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<PAGE> <A name="page_55"></A>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
  <TR valign="bottom">
    <TD width="2%" align=left> </TD>
    <TD width="2%" align=left>&nbsp; </TD>
    <TD width="2%">&nbsp; </TD>
    <TD width="94%" align=left>
      <div align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) 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></div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </TD>
    <TD align=left>&nbsp; </TD>
    <TD>&nbsp; </TD>
    <TD align=left>
      <div align="left"> </div></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(ii) 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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(iii) 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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(iv) 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 &#36;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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(v) 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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(b) </font><i><font size=2 face="serif">Mandatory
          Redemption. </font></i><font size=2 face="serif">The Fund shall redeem,
          at a redemption price equal to &#36;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 (</font><I><FONT size=2 face="serif">provided,
          however, </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD colspan="2">&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"><FONT size=2 face="serif">A-22</FONT></P>
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  <TR valign="bottom">
    <TD width="1%" align=left></TD>
    <TD width="2%" align=left>&nbsp;</TD>
    <TD width="97%"><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c) </FONT><I><FONT size=2 face="serif">Notice of Redemption. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(d) </FONT><I><FONT size=2 face="serif">No Redemption Under Certain Circumstances. </FONT></I><FONT size=2 face="serif">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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(e) </FONT><I><FONT size=2 face="serif">Absence
          of Funds Available for Redemption. </FONT></I><FONT size=2 face="serif">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; </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">that
          the foregoing shall not apply in the case of the Fund&#146;s failure
          to deposit in trust with the Auct ion 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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(f) </FONT><I><FONT size=2 face="serif">Auction Agent as Director of Redemption Payments by Fund. </FONT></I><FONT size=2 face="serif">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></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(g) </FONT><I><FONT size=2 face="serif">Shares
          for Which Notice of Redemption Has Been Given Are no Longer Outstanding. </FONT></I><FONT size=2 face="serif">Provided
          a Notice of Redemption has been mailed pursuant to paragraph (c) of
          this Section 8, upon the deposit with the</FONT></TD>
  </TR>
  <TR valign="bottom">
    <TD align=left></TD>
    <TD align=left>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"><FONT size=2 face="serif">A-23</FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P>
<PAGE> <A name="page_57"></A>
<TABLE border=0 cellspacing=0 cellpadding=0>
  <TR>
    <TD width="34">&nbsp;</TD>
    <TD colspan=2> <FONT size=2 face="serif">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> </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD width="50" valign=top nowrap> <FONT size=2 face="serif">(h)</FONT>&nbsp; &nbsp; &nbsp; </TD>
    <TD width="889"> <I><FONT size=2 face="serif">Compliance with Applicable
          Law. </FONT></I><FONT size=2 face="serif">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>  </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <FONT size=2 face="serif">(i)</FONT>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <I><FONT size=2 face="serif">Only Whole Shares of APS May Be Redeemed. </FONT></I><FONT size=2 face="serif">In
        the case of any redemption pursuant to this </FONT><font size=2 face="serif">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>  </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <FONT size=2 face="serif">(j)</FONT>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <I><FONT size=2 face="serif">Modification of Redemption Procedures. </FONT></I><FONT size=2 face="serif">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 rel evant 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>  </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD nowrap valign=top> <B><FONT size=2 face="serif">9.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
    <TD colspan=2> <B><FONT size=2 face="serif">Liquidation Rights.</FONT></B> </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <I><FONT size=2 face="serif">Distributions Upon Liquidation. </FONT></I><FONT size=2 face="serif">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> </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD colspan=2>&nbsp; </TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD nowrap valign=top> <FONT size=2 face="serif">(b)</FONT>&nbsp; &nbsp; &nbsp; </TD>
    <TD> <I><FONT size=2 face="serif">Pro Rata Distributions. </FONT></I><FONT size=2 face="serif">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>  </TD>
  </TR>
  <TR>
    <TD colspan=3>&nbsp;</TD>
  </TR>
</TABLE>
<P align="center"> <FONT size=2 face="serif">A-24</FONT></P>
<HR noshade  width="100%" size=4>
<PAGE> <A name="page_58"></A>
<table border=0 cellspacing=0 cellpadding=0>
  <tr>
    <td width="41">&nbsp;</td>
    <td colspan=2> <font size=2 face="serif">utable amounts for which holders of all such parity shares are respectively entitled upon such dissolution, liquidation or winding up.</font> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td width="52" valign=top nowrap> <font size=2 face="serif">(c)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Rights of Junior Shares. </font></i><font size=2 face="serif">Subject
        to the rights of the holders of shares of any series or class or</font> <font size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(d)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Certain Events Not Constituting Liquidation. </font></i><font size=2 face="serif">Neither
        the sale of all or substantially all the property</font><font size=2 face="serif"> or
        business of the Fund, nor the merger or consolidation of the Fund into
        or with any business trust or corpo- ration nor the merger or consolidation
        of any business trust or corporation into or with the Fund shall be a
        dis- solution, liquidation or winding up, whether voluntary or involuntary,
        for the purposes of this Section 9.</font> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap valign=top> <b><font size=2 face="serif">10.</font></b>&nbsp; &nbsp; &nbsp; </td>
    <td colspan=2> <b><font size=2 face="serif">Certain Rating Agency Requirements and Restrictions.</font></b> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(a)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <font size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(b)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <font size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(c)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <font size=2 face="serif">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>  </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td nowrap valign=top> <b><font size=2 face="serif">11.</font></b>&nbsp; &nbsp; &nbsp; </td>
    <td colspan=2> <b><font size=2 face="serif">Miscellaneous.</font></b> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(a)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">No Fractional Shares. No fractional shares of APS shall be issued.</font></i> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(b)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Status of Shares of APS Redeemed, Exchanged
          or Otherwise Acquired by the Fund. </font></i><font size=2 face="serif">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></td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(c)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Board May Resolve Ambiguities. </font></i><font size=2 face="serif">To
        the extent permitted by applicable law, the Board of Directors</font><font size=2 face="serif"> may
        interpret or adjust the provisions of these Articles Supplementary to
        resolve any inconsistency or ambi- guity 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>  </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(d)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Headings Not Determinative. </font></i><font size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td nowrap valign=top> <font size=2 face="serif">(e)</font>&nbsp; &nbsp; &nbsp; </td>
    <td> <i><font size=2 face="serif">Notices. </font></i><font size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td colspan=3>&nbsp;</td>
  </tr>
</table>
<P align="center"> <FONT size=2 face="serif">A-25</FONT></P>
<HR noshade  width="100%" size=4>
<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_59"></A>

<P align="center">
<B><FONT size=2 face="serif">PART II.</FONT></B></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="5%" valign=top nowrap> <B><FONT size=2 face="serif">1.</FONT></B>&nbsp; &nbsp; &nbsp; </TD>
  <TD colspan=2> <B><FONT size=2 face="serif">Orders.</FONT></B> </TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD width="5%" colspan="4">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)</FONT>&nbsp; &nbsp; &nbsp;
<I><FONT size=2 face="serif">Prior to the Submission Deadline on each Auction Date for shares of a series of APS:</FONT></I>    </TD>
</TR>
<TR><TD colspan=5>&nbsp;</TD></TR><TR>
  <TD>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
<TD width="5%" colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
<FONT size=2 face="serif">(i) each Beneficial Owner of shares of such series may submit to its Broker-Dealer by telephone</FONT><font size=2 face="serif"> or otherwise information as to:</font>       </TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="5%">&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD colspan="5">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </TR>
<TR>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD width="80%">&nbsp;</TD>
</TR>
</TABLE>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">A-26</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_60"></A>

<BR>
<table width="100%"  border="0" cellpadding="0" cellspacing="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT> (A)
        the number of Outstanding shares of such series specified in such Sell
    Order; or</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided,
        however, </FONT></I><FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c) No Order for any number of shares of APS other
    than whole shares shall be valid.</FONT> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">2.</FONT></B></td>
    <td colspan="3"> <B></B> <B><FONT size=2 face="serif">Submission of Orders by Broker-Dealers
    to Auction Agent.</FONT></B>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD colspan="2" valign=top>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<font size=2 face="serif">(i) the name of the Bidder placing such Order
    (which shall be the Broker-Dealer unless otherwise permitted by the Fund);</font></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD colspan="2" valign=top> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii) the aggregate
    number of shares of such series that are the subject of such Order;</FONT> </TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD colspan="2" valign=top> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii) to the
    extent that such Bidder is an Existing Holder of shares of such series:</FONT> </TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A) the number of shares, if any, of such
    series subject to any Hold Order of such Existing</FONT><font size=2 face="serif"> Holder;</font> </TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(C) the number
        of shares, if any, of such series subject to any Sell Order of such Existing
    Holder; and</FONT></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD colspan="2" valign=top> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <TD valign=top>&nbsp;</TD>
    <TD>&nbsp;</TD>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
</table>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
</TR>
</TABLE>

<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">A-27</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_61"></A>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; </FONT><I><FONT size=2 face="serif">provided,
        however, </FONT></I><FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">3.</FONT></B>&nbsp;</td>
    <td colspan="3"> <B><FONT size=2 face="serif">Determination of Sufficient Clearing Bids,
    Winning Bids Rate and Applicable Dividend Rate.</FONT></B> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P>&nbsp;</P>
<P align="center">
<FONT size=2 face="serif">A-28</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_62"></A>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"><FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) from the
    Submitted Orders for shares of such series whether:</FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"> <FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="serif">A-29</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_63"></A>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">4.</FONT></B></td>
    <td colspan="3"> <B><FONT size=2 face="serif"> Acceptance and Rejection of Submitted
    Bids and Submitted Sell Orders and Allocation of Shares.</FONT></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="serif">A-30</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_64"></A>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">5.</FONT></B></td>
    <td colspan="3"> <B><FONT size=2 face="serif"> Auction Agent.</FONT></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="serif">A-31</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<A name="page_65"></A>

<table width="100%"  border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="5%">&nbsp;</td>
    <td width="85%">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"><FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">6. </FONT></B></td>
    <td colspan="3"> <B><FONT size=2 face="serif">Transfer of APS.</FONT></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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; </FONT><I><FONT size=2 face="serif">provided,
        however, </FONT></I><FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">7.</FONT></B></td>
    <td colspan="3"><B><FONT size=2 face="serif"> Global Certificate.</FONT></B></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td colspan="4"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td><B><FONT size=2 face="serif">8.</FONT></B>&nbsp; </td>
    <td colspan="3"> <B><FONT size=2 face="serif">Force Majeure.</FONT></B> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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; nat- ural 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, </FONT><I><FONT size=2 face="serif">provided, however, </FONT></I><FONT size=2 face="serif">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> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)
        Notwithstanding anything else set forth herein, if a Dividend Payment
        Date is not a Business Day </FONT><font size=2 face="serif">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 com-
munications services or the dividend payable on such date can not be paid for any such reason, then:</font> </td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2">&nbsp;</td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td colspan="2"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<P align="center"><FONT size=2 face="serif">A-32</FONT></P>
<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><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 Amendment and Restatement filed May 11, 2006 </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.2</FONT>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=left><FONT size=2 face="serif">Articles Supplementary filed June 2, 2006 </FONT> </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 align=left> </TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD width="4%" align=left>&nbsp;</TD>
    <TD width="3%" align=left>&nbsp;</TD>
    <TD width="4%" align=left><FONT size=2 face="serif">a.3&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
    <TD width="89%" align=left><font size="2">Form of Articles Supplementary Creating Series
        T and Series TH 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 </FONT></TD>
  </TR>
  <TR>
        <TD colspan=4>

        </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </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">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> </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></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 TH </font></TD>
  </TR>
  <TR valign="bottom">
    <TD colspan="4" align=left> </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> </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>
    <FONT size=2 face="serif"><TD align=left>*</TD></font>
    <TD align=left><FONT size=2 face="serif">To be filed by amendment</font> </TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> </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>
<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>

        </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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
        </TD>
        <TD align=left>
  <FONT size=2 face="serif">Form of Auction Agency Agreement (Incorporated by reference from</FONT></TD>
  </TR>
  <TR>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD><FONT size=2 face="serif"> Exhibit k.10 to Registrant&#146;s registration statement on Form N-2; no. 333-133715)</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">Form of Moody&#146;s Preferred Stock Guidelines (Incorporated
  by reference from Exhibit k.11 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. 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.6</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Form of Standard &amp; Poor&#146;s
        Preferred Stock Guidelines  (Incorporated
  by reference from Exhibit k.12 to</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> </P>
<p> </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;Reference is made to the form of Underwriting Agreement to be filed by amendment.</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></P>
<P> </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">May 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">22,870</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> </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 5th day of July, 2006. </font></p>
<p> </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>

        </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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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">July 5, 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></table>

<table>
  <TR>
        <TD colspan=5>

        </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>

<P align="left" style="page-break-before:always"></P><PAGE>

<P align="center">
<FONT size=2 face="serif">EXHIBIT INDEX </FONT></P>
<P align="left"> </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">a.1</FONT></TD>
    <TD align=left><font size="2" face="serif">Articles of Amendment and Restatement filed May 11, 2006 </font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">a.2</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Articles Supplementary filed June 2, 2006</FONT> </TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">b</FONT></TD>
    <TD align=left><FONT size=2 face="serif">Bylaws</FONT></TD>
    <TD align=left>&nbsp;</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 TH </font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left> <FONT size=2 face="serif">l.1</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Opinion of Mayer, Brown, Rowe &amp; Maw LLP</font></TD>
    <TD align=left>&nbsp;</TD>
  </TR>
  <TR valign="bottom">
    <TD align=left><FONT size=2 face="serif">l.2</FONT>&nbsp; </TD>
    <TD align=left><font size="2" face="serif">Opinion of DLA Piper Rudnick Gray Cary US LLP </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="left"> </P>
<HR noshade  width="100%" size=4>




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`
end
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.A.1
<SEQUENCE>3
<FILENAME>c42214_ex99-a1.htm
<TEXT>

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<p align="right"><b>Exhibit a.1</b> </p>
<p align="center"><B><FONT face="serif">DNP SELECT INCOME FUND INC.</FONT></B></p>
<P align=center>
<B><FONT face="serif">ARTICLES OF AMENDMENT AND RESTATEMENT</FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">DNP SELECT INCOME FUND INC., a Maryland corporation, having its principal office in Baltimore City, Maryland (which is hereinafter called the &#147;Corporation&#148;), desires to amend and restate its
charter as currently in effect, and hereby certifies to the State Department of Assessments and Taxation of Maryland that: </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">FIRST: </FONT></B><FONT face="serif">The following provisions are all of the provisions of the charter of the Corporation as currently in effect and as hereinafter amended: </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FIRST. </FONT><I><FONT face="serif">Name. </FONT></I><FONT face="serif">The name of the corporation (the &#147;Corporation&#148;) is DNP Select Income Fund Inc. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SECOND. </FONT><I><FONT face="serif"> Purposes</FONT></I><FONT face="serif">. The purposes for which the Corporation is formed are: </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To engage in the business of a closed-end management investment company. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To invest and reinvest in, to buy or otherwise acquire, to hold for investment or otherwise, and to sell or otherwise dispose of: </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&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 face="serif">a. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Securities
          of all kinds, however evidenced, and rights or warrants to acquire
          securities, of private and public companies, corporations, associations,
          trusts and other enterprises and organizations; </FONT></P>
      <P align="justify"> &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 face="serif">b.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Obligations
          issued or guaranteed by national and state governments and their instrumentalities
          and subdivisions; </FONT></P>
      <P align="justify"> &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 face="serif">c.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        Deposits in banks, savings banks, trust companies and savings and loan
  associations; </FONT></P>
    <P align="justify"> <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;<FONT face="serif"></FONT>d. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Assets and interests other than
    securities or deposits. </FONT></P></td>
  </tr>
</table>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To engage in any other lawful act or activity for which corporations may be organized under the general laws of the State of Maryland as now or hereafter in force. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">THIRD.  </FONT><I><FONT face="serif">Principal office and resident agent. </FONT></I><FONT face="serif"> The post office address of the principal office of the Corporation in the State of Maryland is
c/o The Corporation Trust Incorporated, 300 East Lombard Street, Baltimore, Maryland 21202. The name and post office address of the resident agent of the Corporation in the State of Maryland is The Corporation Trust Incorporated, 300 East Lombard
Street, Baltimore, Maryland 21202. The resident agent is a Maryland corporation. </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FOURTH. </FONT><I><FONT face="serif">Capital Stock</FONT></I><FONT face="serif">.</FONT><BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The total number of shares of all classes of stock which the Corporation shall have authority to issue is 350,000,000 shares with an aggregate par value of &#36;350,000, divided into two classes, of
250,000,000 shares of common stock, &#36;.001 par value per share (&#147;common stock&#148;), and of 100,000,000 shares of preferred stock, &#36;.001 par value per share (&#147;preferred stock&#148;).  Five thousand shares of preferred stock have
been further designated as shares of Remarketed Preferred Stock, as set forth in Article Fourteenth, and twelve thousand shares preferred stock have been further designated as shares of Auction Preferred Stock, as set forth in Article Fifteenth.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption, of the common stock and the preferred
stock (other than the Remarketed Preferred Stock and the Auction Preferred Stock, the preferences, conversion and other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption of which
are set forth in Article Fourteenth and Article Fifteenth, respectively) are as follows: </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">A. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock</FONT></I><FONT face="serif"> </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</FONT></I><FONT face="serif">.
          Subject to law and to the preferences of the preferred stock, the holders
          of the common stock shall be entitled to receive dividends at such
          time and in such amounts as may be determined by the board of directors. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting</FONT></I><FONT face="serif">.
          Except as provided by law and in or pursuant to this Article Fourth,
          the holders of the common stock shall have one vote for each share
          on each matter submitted to a vote of the stockholders of the Corporation. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="serif">Liquidation</FONT></I><FONT face="serif">.
          In the event of any liquidation, dissolution or winding up of the Corporation,
          whether voluntary or involuntary, after payment or provision for payment
          of the debts and other liabilities of the Corporation and the preferential
          amounts to which the holders of the preferred stock shall be entitled
          upon liquidation, the holders of the common stock shall be entitled
          to share in the remaining assets of the Corporation according to their
          respective interests. </FONT></P>
      <P align=justify> <FONT face="serif">B. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Preferred
            stock</FONT></I><FONT face="serif"> </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Authority
            of the board of directors to issue in series</FONT></I><FONT face="serif">.
            The preferred stock may be issued from time to time in one or more
            series. All shares of any one series of preferred stock shall be
            identical except as to the respective dates of their issue, the dates
            from which dividends on shares of the series issued on different
            dates shall cumulate, dividend rates, dividend periods and dividend
            payment dates. Subject to the charter, authority is expressly granted
            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 the full extent now or hereafter permitted by law, including
    but not limited to the following: </FONT></P></td>
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<FONT size=1 face="serif"> </FONT><FONT face="serif">-2- </FONT><FONT size=1 face="serif"> </FONT></P>

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    <td>&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">a.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The number of shares of such series, which may subsequently be increased
          (except as otherwise provided by the resolution or resolutions of the
          board of directors providing for the issue of such series) or decreased
          (to a number not less than the number of shares then outstanding) by
          resolution or resolutions of the board of directors, and the distinctive
          designation of the series; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">b.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The rates or amounts, the periods, and the times of payment, of dividends
          on shares of such series; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">c.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The voting powers, if any, of the holders of such series in addition
          to the voting powers provided by law and in this Article Fourth; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">d.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions, if any, upon which the shares of such series
          shall be convertible into or exchangeable for shares of any other series,
          class or classes, or any other securities, to the full extent now or
          hereafter permitted by law; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">e.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The time or times during which, the price or prices at which, and the
          terms and conditions on which, the shares of such series may be redeemed
          by the Corporation; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">f.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms of any sinking fund to be applied to the purchase or redemption,
          or both, of shares of such series, and the terms and amount of any
          sinking fund payments and the manner of their application; and </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.
          &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The amount
          which the holders of each series shall be entitled to receive in the
          event of any voluntary or involuntary liquidation, dissolution or winding
          up of the Corporation. </FONT></P></td>
  </tr>
  <tr>
    <td colspan="3">&nbsp;</td>
  </tr>
  <tr>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</P>    </td>
    <td colspan="2"><P align="justify"><FONT face="serif">Except as stated above in this
          part 1, all shares of preferred stock shall be identical. All shares
          of preferred stock, regardless of series, shall be of equal rank, and
          there shall be no priority of one series over any other series in any
          payment of dividends nor upon any distribution of assets. </FONT></P>            <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;</FONT><FONT face="serif">2. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends</FONT></I><FONT face="serif">.
          The holders of preferred stock of each series shall be entitled to
          receive, when and as declared by the board of directors, cumulative
          cash dividends at the rates or amounts, for the periods, and at the
          times, determined as, or in the manner, specified for such series by
          the board of directors as authorized in the preceding part 1. </FONT></P>            <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">No
          dividends shall be paid or declared or set apart for payment on any
          share of preferred stock of any series for any dividend period unless
          at or prior to such time all dividends accumulated on all shares of
          preferred stock then outstanding shall have been declared through the
          most recently ended dividend period of the respective shares, and terminating
          on the same and any earlier date shall have been paid or declared and
          set apart for payment. </FONT></P>
          <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Voting</FONT></I><FONT face="serif">.
          At any meeting of stockholders of the Corporation at which directors
          are to be elected, the holders of preferred stock of all series, voting
    separately as</FONT></P></td>
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<FONT face="serif">-3-</FONT></P>

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    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align=justify><FONT face="serif">a single class, shall be entitled
          to elect two members of the board of directors, and the holders of
          common stock, voting separately as a single class, shall be entitled
          to elect the balance of the members of the board of directors. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">If
          at any time dividends on any outstanding preferred stock of any series
          shall be unpaid in an amount equal to two full years&#146; dividends,
          the number of directors constituting the board of directors shall automatically
          be increased by the smallest number that, when added to the number
          of directors then constituting the board of directors, shall constitute
          a majority of such increased number, including the two directors elected
          by the holders of preferred stock pursuant to the preceding paragraph;
          and at a special meeting of stockholders which shall be called and
          held as soon as practicable, and at all subsequent meetings at which
          directors are to be elected, the holders of preferred stock of all
          series, voting separately as a single class, shall be entitled to elect
          the smallest number of additional directors of the Corporation who
          will constitute a majority of the total number of directors of the
          Corporation so increased. The terms of office of the persons who are
          directors at the time of that election shall continue. If the Corporation
          thereafter shall pay, or declare and set apart for payment, in full
          all dividends payable on all outstanding shares of preferred stock
          of all series for all past dividend periods, the voting rights stated
          in the preceding sentence shall cease, and the terms of office of all
          of the directors elected by the holders of preferred stock (but not
          of the directors elected by the holders of common stock) shall terminate
          automatically. A special meeting of stockholders shall be called and
          held as soon thereafter as practicable for the election of two directors
          by the holders of the preferred stock, as provided in the preceding
          paragraph; and at such meeting, and at all subsequent meetings of stockholders
          at which directors are to be elected, the holders of shares of preferred
          stock and of common stock shall have the right to elect the members
          of the board of directors as stated in the preceding paragraph, subject
          to the revesting of the rights of the holders of the preferred stock
          as provided in the first sentence of this paragraph in the event of
          any subsequent arrearage in the payment of two full years&#146; dividends
          on the shares of preferred stock of any series. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Any
          vacancy in the office of any director elected by the holders of shares
          of preferred stock may be filled by the remaining directors (or director)
          so elected or, if not so filled, by the holders of shares of preferred
          stock of all series, voting separately as a single class, at any meeting
          of stockholders for the election of directors held thereafter. A director
          elected by the holders of preferred stock or of common stock may be
          removed with or without cause, but only by action taken by the holders
          of at least 75% of the shares of preferred stock or of common stock,
          respectively, then entitled to vote in an election to fill that directorship. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Except
          to the extent stated otherwise in this Article Fourth, the provisions
          of Article Sixth shall apply to this Article Fourth. </FONT></P>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">4. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Liquidation</FONT></I><FONT face="serif">.
          In the event of any liquidation, dissolution or winding up of the Corporation,
          whether voluntary or involuntary, the holders of preferred stock of
          each series shall be entitled to receive only such amount or amounts,
          including accumulated and unpaid dividends, as shall have been fixed
    by the charter or by the resolution or</FONT></P></td>
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<FONT face="serif">-4-</FONT></P>

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<P align=justify>&nbsp;</P>
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    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align=justify><FONT face="serif">resolutions of the board of directors
          providing for the issue of such series. If, upon any such liquidation,
          dissolution or winding up of the Corporation, whether voluntary or
          involuntary, the assets of the Corporation available for distribution
          among the holders of all outstanding shares of preferred stock of all
          series should be insufficient to permit the payment in full to such
          holders of the amounts to which they are entitled, then such available
          assets shall be distributed among the holders of shares of preferred
          stock ratably in any such distribution of assets according to the respective
          amounts that would be payable on all such shares if all amounts thereon
          were paid in full. A consolidation or merger of the Corporation with
          or into one or more other corporations or a sale, lease or exchange
          of all or substantially all of the assets of the Corporation shall
          not be deemed to be a voluntary or involuntary liquidation, dissolution
          or winding up, within the meaning of this Article Fourth. </FONT></P>
      <P align="justify"> <FONT face="serif">C.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="serif">All
            stock</FONT></I><FONT face="serif"> </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1. </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Sale
            of shares</FONT></I><FONT face="serif">. The board of directors may
            authorize the sale and issuance from time to time of shares of stock,
            whether now or hereafter authorized, for such consideration as the
            board of directors considers advisable, but not less than par value,
            subject to such limitations as may be set forth in the charter of
            the Corporation, the bylaws, the General Laws of the State of Maryland,
            the Investment Company Act of 1940, and other applicable laws. </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="serif">Fractional
            shares</FONT></I><FONT face="serif">. Except as may be provided otherwise
            by the board of directors in authorizing the issuance of a series
            of preferred stock, stock may be issued in fractions of whole shares,
            to which attach pro rata all of the rights of whole shares, including
            the right of voting and of receipt of dividends, except that there
            shall be no right of receipt of a certificate representing any fraction
            of a whole share. </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="serif">No
            preemptive rights</FONT></I><FONT face="serif">. No holder of shares
            of the Corporation, whether now or hereafter authorized, shall be
            entitled as of right to acquire from the Corporation any shares of
    the Corporation, whether now or hereafter authorized. </FONT></P></td>
  </tr>
</table>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FIFTH. </FONT><I><FONT face="serif"> Bylaws.</FONT></I><FONT face="serif">  The board of directors is authorized to adopt, alter and repeal the bylaws of the Corporation, except to the extent that the
bylaws provide otherwise. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SIXTH. </FONT><I><FONT face="serif"> Board of Directors.</FONT></I><FONT face="serif"> </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The total number of directors constituting the board of directors of the Corporation shall be three, which number may be increased from time to time in accordance with the bylaws of the Corporation but shall not be less than three. No decrease in the number of directors shall have the effect of
shortening the term of any director then in office. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Beginning with the first annual meeting of shareholders held after the initial public offering of the shares of the Corporation (&#147;the initial annual meeting&#148;), the board of directors
shall be divided into three classes: class I, class II, and class III. The terms of office of the classes of directors elected at the initial annual meeting shall expire at the times of the annual meetings of the stockholders as follows&#151;class I
in 1988, class II in 1989, and class III in 1990&#151;or thereafter in each case when their respective successors are elected and qualified. At each </FONT></P>
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<FONT size=1 face="serif"> </FONT><FONT face="serif">-5- </FONT><FONT size=1 face="serif"> </FONT></P>

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<FONT face="serif">subsequent annual election, the directors chosen to succeed those whose terms are expiring shall be identified as being of the same class as the directors whom they succeed, and shall be elected for a term expiring at the time of
the third succeeding annual meeting of stockholders, or thereafter in each case when their respective successors are elected and qualified. The number of directorships shall be apportioned among the classes so as to maintain the classes as nearly
equal in number as possible. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any vacancy occurring in the board of directors may be filled by a majority of the directors in office. A new directorship resulting from an increase in the number of directors shall be construed
not to be a vacancy. Any director elected to fill a vacancy shall be in the same class and have the same remaining term as that of the predecessor. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">4. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A director may be removed with or without cause, but only by action of the shareholders taken by the holders of at least 75% of the shares then entitled to vote in an election of directors.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">5. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A majority of the total number of directors fixed in the bylaws shall be required to constitute a quorum at meetings of the board of directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SEVENTH. </FONT><I><FONT face="serif"> Majority votes of stockholders</FONT></I><FONT face="serif">. Notwithstanding any provision of the laws of the State of Maryland requiring approval by the
stockholders of any action by the affirmative vote of a greater proportion than a majority of the votes entitled to be cast on the matter, any such action may be taken or authorized upon the concurrence of a majority of the number of votes entitled
to be cast thereon. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">EIGHTH. </FONT><I><FONT face="serif"> Indemnification.</FONT></I><FONT face="serif">  Each person who is or was a director or officer of the Corporation, and each person who serves or served at the
request of the Corporation as a director or officer of another enterprise, shall be indemnified by the Corporation in accordance with, and to the fullest extent authorized by, the Maryland General Corporation Law as it may be in effect from time to
time, provided that this section shall not protect any director or officer of the Corporation against any liability to the Corporation or to its shareholders to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross
negligence or reckless disregard of the duties involved in the conduct of his office; and provided further that this Article Eighth shall not apply as to any action, suit or proceeding brought by or on behalf of a director or officer without prior
approval of the board of directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">NINTH. </FONT><I><FONT face="serif"> Liability of directors and officers. </FONT></I><FONT face="serif">The directors and officers of the Corporation shall not be liable to the Corporation or to any
of its stockholders or creditors because of any action taken by them in good faith, and in taking any such action the directors and officers shall be fully protected in relying in good faith upon the books of account of the Corporation or statements
or reports prepared by any of its officials or employees or by others who they believe in good faith are qualified to make such statements or reports; provided that this sentence shall not protect any director or officer of the Corporation against
any liability to the Corporation or to its stockholders to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office. </FONT></P>
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<FONT face="serif">-6-</FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">TENTH. </FONT><I><FONT face="serif"> Merger, sale of assets, liquidation. </FONT></I><FONT face="serif">Notwithstanding any other provisions of the charter of the Corporation, a favorable vote of the
holders of at least 75% of the shares of the Corporation then entitled to be voted on the matter shall be required to approve, adopt or authorize (i) a merger or consolidation of the Corporation with any other corporation, (ii) a sale of all or
substantially all of the assets of the Corporation (other than in the regular course of its investment activities), or (iii) a liquidation or dissolution of the Corporation, unless such action has previously been approved, adopted or authorized by
the affirmative vote of two-thirds of the total number of directors fixed in accordance with the bylaws. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">ELEVENTH. </FONT><I><FONT face="serif"> Conversion to open-end company. </FONT></I><FONT face="serif">Notwithstanding any other provisions of the charter of the Corporation, at any time prior to
January 1, 1992, a favorable vote of the holders of at least 75% of the shares of the Corporation entitled to be voted on the matter shall be required to approve, adopt or authorize an amendment to the charter of the Corporation that makes the
common stock a redeemable security (as that term is defined in the Investment Company Act of 1940), unless such action has previously been approved, adopted or authorized by the affirmative vote of two-thirds of the total number of directors fixed
in accordance with the bylaws. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">TWELFTH. </FONT><I><FONT face="serif">Amendment of charter. </FONT></I><FONT face="serif">The Corporation reserves the right to amend, alter, change or repeal any provision contained in its charter,
in the manner now or hereafter prescribed by statute, and any rights conferred upon the stockholders are granted subject to this reservation. Notwithstanding any other provisions of the charter of the Corporation or the bylaws of the Corporation
(and notwithstanding the fact that a lesser percentage may be specified by law or the charter or bylaws of the Corporation), the amendment or repeal of Article Sixth, Seventh, Eighth, Ninth, Tenth, Eleventh or Twelfth of the charter of the
Corporation shall require the affirmative vote of the holders of at least 75% of the shares then entitled to be voted on the matter. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">THIRTEENTH.  </FONT><I><FONT face="serif">Limitation of Liability</FONT></I><FONT face="serif">.  To the fullest extent permitted by Maryland statutory or decisional law, as amended or interpreted, no
director or officer of the Corporation shall be personally liable to the Corporation or to its stockholders for money damages; provided, however, that this Article Thirteenth shall not protect any director or officer of the Corporation against any
liability to the Corporation or to its stockholders to which he or she would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence, or reckless disregard of the duties involved in the conduct of his or her office.  No
amendment of the charter of the Corporation or repeal of any of its provisions shall limit or eliminate the benefits provided to directors and officers under this provision in connection with any act or omission that occurred prior to such amendment
or repeal. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FOURTEENTH.  </FONT><I><FONT face="serif">Remarketed Preferred Stock.  </FONT></I><FONT face="serif">The number of shares, preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of redemption, of the Remarketed Preferred Stock, Series A; Remarketed Preferred Stock, Series B; Remarketed Preferred Stock, Series C; Remarketed Preferred Stock, Series D; and
Remarketed Preferred Stock, Series E are as set forth in this Article Fourteenth:</FONT><I><FONT face="serif"> </FONT></I></P>
<center>
  <FONT face="serif">DESIGNATION</FONT>
</center>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SERIES A:  A series of 1,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;100,000 per share plus accumulated but unpaid dividends, if any, thereon (whether or
not earned or declared), is designated &#147;Remarketed Preferred Stock, Series A.&#148; Each share of Remarketed Preferred Stock, Series A shall be issued on a date to be determined by the Board of Directors of the Corporation or a duly authorized
committee thereof; have an Initial Dividend Payment Date (as herein defined) to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof; be redeemed (unless such share shall have been otherwise redeemed
pursuant to paragraph 4 of Part I of this Article Fourteenth) by the Corporation on a date to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof at a redemption price of &#36;100,000 per share plus
accumulated but unpaid dividends to the date fixed for redemption (whether or not earned or declared); 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 Corporation, as are set forth in Part I and Part II of this Article Fourteenth. The Remarketed Preferred Stock, Series A shall constitute a separate series of preferred stock of the Corporation, and each
share of Remarked Preferred Stock, Series A shall be identical except as provided in paragraph 4 of Part I of this Article Fourteenth. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SERIES B:  A series of 1,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;100,000 per share plus accumulated but unpaid  dividends, if any, thereon (whether or
not earned or declared), is designated &#147;Remarketed Preferred Stock, Series B.&#148; Each share of Remarketed Preferred Stock, Series B shall be issued on a date to be determined by the Board of Directors of the Corporation or a duly authorized
committee thereof; have an Initial Dividend Payment Date (as herein defined) to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof; be redeemed (unless such share shall have been otherwise redeemed
pursuant to paragraph 4 of Part I of this Article Fourteenth) by the Corporation on a date to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof at a redemption price of &#36;100,000 per share plus
accumulated but unpaid dividends to the date fixed for redemption (whether or not earned or declared); 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 Corporation, as are set forth in Part I and Part II of this Article Fourteenth. The Remarketed Preferred Stock, Series B shall constitute a separate series of preferred stock of the Corporation, and each
share of Remarketed Preferred Stock, Series B shall be identical except as provided in paragraph 4 of Part I of this Article Fourteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SERIES C:  A series of 1,000 shares of preferred stock, par value of &#36;.001 per share, liquidation preference &#36;100,000 per share plus accumulated but unpaid dividends, if any, thereon</FONT></P>
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<FONT face="serif">-8-</FONT></P>

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<FONT face="serif">(whether or not earned or declared), is designated &#147;Remarketed Preferred Stock, Series C.&#148; Each share of Remarketed Preferred Stock, Series C shall be issued on a date to be determined by the Board of Directors of the
Corporation or a duly authorized committee thereof; have an Initial Dividend Payment Date (as herein defined) to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof; be redeemed (unless such share shall
have been otherwise redeemed pursuant to paragraph 4 of Part I of this Article Fourteenth) by the Corporation on a date to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof at a redemption price of
&#36;100,000 per share plus accumulated but unpaid dividends to the date fixed for redemption (whether or not earned or declared); 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 Corporation, as are set forth in Part I and Part II of this Article Fourteenth. The Remarketed Preferred Stock, Series C shall constitute a separate series of preferred stock of
the Corporation, and each share of Remarketed Preferred Stock, Series C shall be identical except as provided in paragraph 4 of Part I of this Article Fourteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SERIES D:  A series of 1,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;100,000 per share plus accumulated but unpaid dividends, if any, thereon (whether or
not earned or declared), is designated &#147;Remarketed Preferred Stock, Series D.&#148; Each share of Remarketed Preferred Stock, Series D shall be issued on a date to be determined by the Board of Directors of the Corporation or a duly authorized
committee thereof; have an Initial Dividend Payment Date (as herein defined) to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof; be redeemed (unless such share shall have been otherwise redeemed
pursuant to paragraph 4 of Part I of this Article Fourteenth) by the Corporation on a date to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof at a redemption price of &#36;100,000 per share plus
accumulated but unpaid dividends to the date fixed for redemption (whether or not earned or declared); 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 Corporation, as are set forth in Part I and Part II of this Article Fourteenth. The Remarketed Preferred Stock, Series D shall constitute a separate series of preferred stock of the Corporation, and each
share of Remarketed Preferred Stock, Series D shall be identical except as provided in paragraph 4 of Part I of this Article Fourteenth. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">SERIES E:  A series of 1,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;100,000 per share plus accumulated but unpaid dividends, if any, thereon (whether or
not earned or declared), is designated &#147;Remarketed Preferred Stock, Series E.&#148; Each share of Remarketed Preferred Stock, Series E shall be issued on a date to be determined by the Board of Directors of the Corporation or a duly authorized
committee thereof; have an Initial Dividend Payment Date (as herein defined) to be determined by the Board of Directors of the Corporation or a duly authorized committee thereof; be redeemed (unless such share shall have been otherwise redeemed
pursuant to paragraph 4 of Part I of this Article Fourteenth) by the Corporation on a date to be determined by the Board of Directors of the Corporation of a duly authorized committee thereof at a redemption price of &#36;100,000 per share plus
accumulated but unpaid dividends to the date fixed for redemption (whether or not earned or declared); 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 Corporation, as are</FONT></P>
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<FONT face="serif">set forth in Part I and Part II of this Article Fourteenth. The Remarketed Preferred Stock, Series E shall constitute a separate series of preferred stock of the Corporation, and each share of Remarketed Preferred Stock, Series E
shall be identical except as provided in paragraph 4 of Part I of this Article Fourteenth. </FONT></P>
<center>
  <U><FONT face="serif">PART I.</FONT></U>
</center>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Definitions</FONT></U><FONT face="serif">. Unless the context or use indicates another or different meaning or intent, the following terms shall have the following
meanings for purposes of this Article Fourteenth, whether used in the singular or plural: </FONT></P>
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&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 face="serif">&#147;&#145;AA&#146; Composite Commercial Paper Rate,&#148; on any date, means (i) the Interest Equivalent of the rate on commercial paper placed for the number of days specified in the succeeding
sentence on behalf of issuers whose corporate bonds are rated &#147;AA&#148; by S&amp;P and &#147;Aa&#148; by Moody&#146;s, or the equivalent of such rating by another nationally recognized statistical rating organization, as such rate is made
available by the Federal Reserve Bank of New York on a discount basis or otherwise for the Business Day immediately preceding such date, or (ii) if the Federal Reserve Bank of New York does not make available such a rate, then the arithmetic average
of the Interest Equivalent of such rates on commercial paper placed on behalf of such issuers, as quoted on a discount basis or otherwise by the Commercial Paper Dealers to the Remarketing Agent for the close of business on the Business Day
immediately preceding such date. In respect of any Dividend Period (determined without regard to any adjustment in the remarketing schedule in respect of non-Business Days, as provided herein), the &#147;AA&#148; Composite Commercial Paper Rate
shall be the Interest Equivalent of the 60-day rate. If any Commercial Paper Dealer does not quote a rate required to determine the &#147;AA&#148; Composite Commercial Paper Rate, the &#147;AA&#148; Composite Commercial Paper Rate shall be
determined on the basis of the quotation or quotations furnished by the remaining Commercial Paper Dealer or Dealers or, if none of the Commercial Paper Dealers quotes such a rate, by any Substitute Commercial Paper Dealer or Dealers selected by the
Corporation to provide such rate or rates not being supplied by any Commercial Paper Dealer. </FONT></P>
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&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 face="serif">&#147;Accountant&#146;s Confirmation&#148; has the meaning set forth in paragraph 8(a) (iii) of this Part I.</FONT><BR>
</P>
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&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 face="serif">&#147;Agent Member&#148; means a designated member of the Securities Depository that will maintain records for a Beneficial Owner of shares of RP and that will be authorized and instructed to disclose
information to the Remarketing Agent and the Paying Agent with respect to such Beneficial Owner. </FONT></P>
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&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 face="serif">&#147;Annual Valuation Date&#148; means, for so long as any shares of RP are outstanding, December 31 of each year, or, if such day is not a Valuation Date, the next preceding Valuation Date.
</FONT></P>
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&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 face="serif">&#147;Applicable Dividend Rate&#148; means, with respect to the Initial Dividend Period, the rate of cash dividend per annum established by the Board of Directors and, for each subsequent Dividend
Period, means the rate of cash dividend per annum that (i) except for a Dividend Period commencing during a Non-Payment Period, will be equal to the lower of the</FONT></P>
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<FONT face="serif">rate of cash dividend per annum that the Remarketing Agent advises results on the Dividend Reset Date preceding the first day of such Dividend Period from implementation of the remarketing procedures set forth in Part II hereof
and the Maximum Dividend Rate or (ii) for each Dividend Period commencing during a Non-Payment Period, will be equal to the Non-Payment Period Rate. </FONT></P>
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&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 face="serif">&#147;Applicable Percentage&#148; has the meaning set forth under &#147;Maximum Dividend Rate&#148; below.</FONT><BR>
</P>
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&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 face="serif">&#147;Authorized Newspaper&#148; means a newspaper of general circulation in the English language generally published on Business Days in The City of New York. </FONT></P>
<P align=justify>
&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 face="serif">&#147;Beneficial Owner&#148; means a person that is listed as the beneficial owner of one or more shares of RP in the records of the Paying Agent or, with respect to any share not registered in the
name of the Securities Depository on the stock transfer books of the Corporation, the person in whose name such share is so registered. </FONT></P>
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&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 face="serif">&#147;Board of Directors&#148; means the Board of Directors of the Corporation. </FONT></P>
<P align=justify>
&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 face="serif">&#147;Business Day&#148; means a day on which the New York Stock Exchange, Inc. is open for trading, and is not a day on which banks in The City of New York are authorized or obligated by law to
close. </FONT></P>
&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 face="serif">&#147;Charter&#148; means the charter of the Corporation.</FONT><BR>
<P align="justify">
&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 face="serif">&#147;Code&#148; means the Internal Revenue Code of 1986, as amended from time to time. </FONT></P>
<P align="justify">
&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 face="serif">&#147;Commercial Paper Dealers&#148; means Merrill Lynch, Pierce, Fenner &amp; Smith Incorporated (&#147;MLPF&amp;S&#148;) and such other Commercial Paper Dealer or Dealers as the Corporation may from
time to time appoint, or, in lieu of any thereof, their respective affiliates or successors. </FONT></P>
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&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 face="serif">&#147;Common Stock&#148; means the common stock, par value &#36;.001 per share, of the Corporation.</FONT></P>
<P align=justify>
&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 face="serif">&#147;Corporation&#148; means DNP Select Income Fund Inc., a Maryland corporation and the issuer of the shares of RP. </FONT></P>
<P align=justify>
&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 face="serif">&#147;Date of Original Issue&#148; means, with respect to any share of RP, the date on which the Corporation originally issues such share. </FONT></P>
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&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 face="serif">&#147;Discount Factor&#148; means a Moody&#146;s Discount Factor (if Moody&#146;s is then rating the RP), an S&amp;P Discount Factor (if S&amp;P is then rating the RP) or a Substitute Rating Agency
Discount Factor (if a Substitute Rating Agency is then rating the RP), as the case may be. </FONT></P>
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&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 face="serif">&#147;Discounted Value,&#148; with respect to any asset held by the Corporation as of any date, means the Moody&#146;s Discounted Value of such asset (if Moody&#146;s is then rating the RP), the
S&amp;P Discounted Value of such asset (if S&amp;P is then rating the RP) or a Substitute Rating </FONT></P>
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<FONT face="serif">Agency Discounted Value of such asset (if a Substitute Rating Agency is then rating the RP), as the case may be.</FONT></P>
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&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 face="serif">&#147;Dividend Payment Date&#148; means the day after the last day of the applicable Dividend Period; provided that, if any such date shall not be a Business Day, the Dividend Payment Date shall be
the Business Day next succeeding such day. </FONT></P>
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&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 face="serif">&#147;Dividend Period&#148; means, with respect to any share of RP, the Initial Dividend Period for such share and thereafter a period which shall commence on each (but not the final) Dividend Payment
Date for such share (which, except during a Non-Payment Period, shall be a Settlement Date for such share). Each such subsequent Dividend Period for such share will comprise, beginning with and including the day upon which it commences, 49
consecutive days (or such other number of consecutive days as are specified by the Board of Directors in the event of a change in law altering the Minimum Holding Period, as provided herein). Notwithstanding the foregoing, any adjustment of the
remarketing schedule by the Remarketing Agent which includes an adjustment of a Settlement Date shall lengthen or shorten the related Dividend Period by causing it to end on and include the day before the Settlement Date as so adjusted. </FONT></P>
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&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 face="serif">&#147;Dividend Reset Date&#148; means any date on which the Remarketing Agent (i) determines the Applicable Dividend Rate for the ensuing Dividend Period, (ii) notifies holders, purchasers and
tendering holders of shares of RP by telephone, telex or otherwise of the results of the Remarketing and (iii) announces such Applicable Dividend Rate. </FONT></P>
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&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 face="serif">&#147;Dividends-Received Deduction&#148; means the deduction allowed to corporate holders of certain preferred stock with respect to dividends received on such stock by Section 243(a)(1) of the Code,
or any successor thereto. </FONT></P>
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&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 face="serif">&#147;Eligible Asset&#148; means a Moody&#146;s Eligible Asset (if Moody&#146;s is then rating the RP), an S&amp;P Eligible Asset (if S&amp;P is then rating the RP) or a Substitute Rating Agency
Eligible Asset (if a Substitute Rating Agency is then rating the RP), as the case may be. </FONT></P>
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&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 face="serif">&#147;Holder&#148; means, with respect to any share of RP, unless the context otherwise requires, the person whose name appears on the stock transfer books of the Corporation as the registered holder
of such share. </FONT></P>
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&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 face="serif">&#147;Independent Accountant&#148; means a nationally recognized accountant, or firm of accountants, that is with respect to the Corporation an independent public accountant or firm of independent
public accountants under the Securities Act of 1933, as amended. </FONT></P>
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&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 face="serif">&#147;Initial Dividend Period&#148; means, with respect to any share of RP, the period commencing on and including the Date of Original Issue of such share and ending on the day prior to the Initial
Dividend Payment Date. </FONT></P>
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&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 face="serif">&#147;Interest Equivalent&#148; 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. </FONT></P>
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&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 face="serif">&#147;Investment Company Act&#148; means the Investment Company Act of 1940, as amended from time to time. </FONT></P>
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&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 face="serif">&#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% of the aggregate liquidation
preference with respect to all outstanding senior securities of the Corporation which are stock, including all outstanding shares of Preferred Stock (or such other asset coverage as may 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 paying dividends on its common stock). </FONT></P>
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&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 face="serif">&#147;Investment Company Act Cure Date,&#148; with respect to the failure by the Corporation to maintain the Investment Company Act Preferred Stock Asset Coverage (as required by paragraph 7 of this
Part I) as of the last day of each month, means the last Business Day of the following such month. </FONT></P>
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&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 face="serif">&#147;Market Value&#148; means the Moody&#146;s Market Value (if Moody&#146;s is then rating the RP), the S&amp;P Market Value (if S&amp;P is then rating the RP) or a Substitute Rating Agency Market
Value (if a Substitute Rating Agency is then rating the RP), as the case may be. </FONT></P>
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&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 face="serif">&#147;Maximum Dividend Rate&#148; for any Dividend Period at any Dividend Reset Date shall apply to a cash dividend, and be the Applicable Percentage of the applicable &#147;AA&#148; Composite
Commercial Paper Rate. The Applicable Percentage shall vary with the lower of the credit rating or ratings assigned to the shares of RP by Moody&#146;s and S&amp;P (or if Moody&#146;s or S&amp;P or both shall not make such rating available, the
equivalent of either or both of such ratings by a Substitute Rating Agency or two Substitute Rating Agencies or, in the event that only one such rating shall be available, such rating) on each Dividend Reset Date as follows: </FONT></P>
<TABLE width="80%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan="2" align=left nowrap>
      <center>
        <div style="border-bottom:1px solid #000000"> <font face="serif">Credit
            Ratings</font>&nbsp; </div>
      </center></TD>
	<TD width=23%>&nbsp;
	</TD>
	<TD width=26% align=center>
<U><FONT face="serif">Applicable</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD width=25% align=left nowrap>&nbsp;

	</TD>
	<TD width=26% align=left nowrap>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<U><FONT face="serif">Percentage</FONT></U>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<U><FONT face="serif">Moody&#146;s</FONT></U>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif"><u>S&amp;P</u></FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">&#147;aa3&#148; or higher</FONT>&nbsp;
	</TD>
	<TD align=left nowrap>
      <center>
        <FONT face="serif">AA- or higher</FONT>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT face="serif">150%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">&#147;a3&#148; to &#147;a1&#148;</FONT>&nbsp;
	</TD>
	<TD align=center nowrap>
      <center>
        <FONT face="serif">A- to A+</FONT>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT face="serif">175%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">&#147;baa3&#148; to &#147;baa1&#148;</FONT>&nbsp;
	</TD>
	<TD align=left nowrap>
      <center>
        <FONT face="serif">BBB- to BBB+</FONT>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT face="serif">200%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap>
<FONT face="serif">Below &#147;baa3&#148;</FONT>&nbsp;
	</TD>
	<TD align=center nowrap>
      <center>
        <FONT face="serif">Below BBB-</FONT>&nbsp;
	    </center></TD>
	<TD>&nbsp;
	</TD>
	<TD align=center>
<FONT face="serif">225%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
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<FONT face="serif">Notwithstanding the foregoing, the Board of Directors shall have the authority from time to time to change the Applicable Percentage associated with any of the above credit rating categories to a level below or equal to the
percentage set forth in the table above, provided that the Board of Directors determines and the Rating Agencies advise the Corporation in writing that such change will not adversely affect their then-current ratings on the RP. The Remarketing Agent
shall round each applicable Maximum Dividend Rate to the nearest one-thousandth (0.001) of one percent per annum, with any such number ending in five ten-thousandths (0.0005) of one percent being rounded upwards to the nearest one-thousandth (0.001)
of one percent. The Remarketing Agent shall not round the applicable &#147;AA&#148; Composite Commercial Paper Rate as part of their calculation of any Maximum Dividend Rate. </FONT></P>
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&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 face="serif">&#147;Minimum Holding Period&#148; means 46 days or such other minimum holding period required for corporate taxpayers to be entitled to the Dividends-Received Deduction as provided in Section 246(c)
of the Code or any successor thereto. </FONT></P>
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&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 face="serif">&#147;Moody&#146;s&#148; means Moody&#146;s Investors Service, Inc.; and includes any successor thereto. </FONT></P>
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&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 face="serif">&#147;Moody&#146;s Discounted Value,&#148; with respect to any asset held by the Corporation 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 Moody&#146;s Market Value of such asset divided by the applicable Moody&#146;s Discount Factor; provided, however, 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>
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&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 face="serif">&#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 Corporation&#146;s assets
in connection with Moody&#146;s rating of the RP. </FONT></P>
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&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 face="serif">&#147;Moody&#146;s Eligible Assets&#148; means assets of the Corporation 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 RP. </FONT></P>
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&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 face="serif">&#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; provided,
however, 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 Corporation, 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 RP or revising the Corporation&#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 RP 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 RP. </FONT></P>
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&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 face="serif">&#147;Moody&#146;s Market Value,&#148; with respect to any asset of the Corporation, means the amount set forth in the Moody&#146;s Guidelines as the &#147;Market Value&#148; of such asset. </FONT></P>
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&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 face="serif">&#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>
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&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 face="serif">&#147;Non-Payment Period&#148; means any period beginning on and including the day on which the Corporation shall fail to (i) declare, prior to 12:00 noon, New York City time, on the second Business
Day preceding any Dividend Payment Date for any shares of RP, for payment on such Dividend Payment Date to the Beneficial Owners of such shares of RP as of 12:00 noon, New York City time, on the Business Day preceding such Dividend Payment Date, the
full amount of any dividend on such shares of RP payable on such Dividend Payment Date or (ii) deposit, irrevocably in trust, in same-day funds, with the Paying Agent by 12:00 noon, New York City time, (A) on any Dividend Payment Date the full
amount of any declared cash dividend (whether or not earned) payable on such Dividend Payment Date or (B) on any redemption date for any shares of RP, the redemption price of such shares of &#36;100,000 per share plus the full amount of any cash
dividends thereon (whether or not earned or declared) </FONT></P>
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<FONT face="serif">accumulated but unpaid to such redemption date after a Notice of Redemption with respect to such shares of RP has been given pursuant to paragraph 4(e) of Part I hereof, and ending on and including the Business Day on which, by
12:00 noon, New York City time, all unpaid cash dividends and unpaid redemption prices shall have been so deposited or shall have otherwise been made available to Beneficial Owners in same-day funds; provided that a Non-Payment Period shall not end
during the first seven days thereof unless the Corporation shall have given at least three days&#146; written notice to the Paying Agent, the Remarketing Agent and the Securities Depository and thereafter shall not end unless the Corporation shall
have given at least fourteen days&#146; written notice to the Paying Agent, the Remarketing Agent, the Securities Depository and all Beneficial Owners. </FONT></P>
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&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 face="serif">&#147;Non-Payment Period Rate&#148; means, initially, 225% of the applicable &#147;AA&#148; Composite Commercial Paper Rate, provided that the Board of Directors shall have the authority to adjust,
modify, alter or change from time to time the initial Non-Payment Period Rate if the Board of Directors determines and the Rating Agencies advise the Corporation in writing that such adjustment, modification, alteration or change will not adversely
affect their then-current ratings on the RP. </FONT></P>
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&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 face="serif">&#147;Notice of Redemption&#148; means any notice with respect to the redemption of shares of RP pursuant to paragraph 4 of this Part I. </FONT></P>
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&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 face="serif">&#147;Other Preferred Stock&#148; means Preferred Stock other than the RP. </FONT></P>
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&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 face="serif">&#147;Other RP&#148; means remarketed preferred stock of the Corporation, if any, other than the RP. For the avoidance of doubt, &#147;Other RP&#148; shall not include any shares of Preferred Stock
issued pursuant to a registration statement that was filed with the Securities and Exchange Commission on or after June 13, 1989. </FONT></P>
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&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 face="serif">&#147;Paying Agent&#148; means The Bank of New York, or any successor company or entity, which has entered into a Paying Agent Agreement with the Corporation to act for the Corporation, among other
things, as the transfer agent, registrar, dividend and redemption price disbursing agent, settlement agent and agent for certain notifications in connection with the shares of RP in accordance with such agreement. </FONT></P>
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&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 face="serif">&#147;Paying Agent Agreement&#148; means an agreement to be entered into between the Corporation and the Paying Agent. </FONT></P>
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&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 face="serif">&#147;Preferred Stock&#148; means the preferred stock, par value &#36;.001 per share, of the Corporation, and includes the RP and Other Preferred Stock. </FONT></P>
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&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 face="serif">&#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 RP), the S&amp;P Preferred Stock Basic
Maintenance Amount (if S&amp;P is then rating the RP) or a Substitute Rating Agency Basic Maintenance Amount (if a Substitute Rating Agency is then rating the RP), as the case may be. </FONT></P>
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&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 face="serif">&#147;Preferred Stock Basic Maintenance Cure Date,&#148; with respect to the failure by the Corporation to satisfy any Preferred Stock Basic Maintenance Amount (as required by paragraph</FONT></P>
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<FONT face="serif">8 of this Part I) as of a given Valuation Date, means the eighth Business Day following such Valuation Date. </FONT></P>
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&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 face="serif">&#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 Corporation which sets forth, as of any
Valuation Date, the assets of the Corporation, the Market Value and the Discounted Value thereof (seriatim and in aggregate) and each Preferred Stock Basic Maintenance Amount. </FONT></P>
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&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 face="serif">&#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 RP, and, at such time as S&amp;P and/or Moody&#146;s no longer issues a rating
for the RP, the Substitute Rating Agency or Substitute Rating Agencies, as the case may be. </FONT></P>
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&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 face="serif">&#147;Remarketing&#148; means each periodic operation of the process for remarketing shares of RP as described in Part II hereof. </FONT></P>
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&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 face="serif">&#147;Remarketing Agent&#148; means MLPF&amp;S and any additional or successor companies or entities which have entered into an agreement with the Corporation to carry out the remarketing procedures
for the purpose of determining the Applicable Dividend Rates. </FONT></P>
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<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;&#147;Right&#148; has the meaning set forth in paragraph 3(k) of this Part I. </FONT></P>
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&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 face="serif">&#147;RP&#148; means either the Remarketed Preferred Stock, Series A; the Remarketed Preferred Stock, Series B; the Remarketed Preferred Stock, Series C; the Remarketed Preferred Stock, Series D; or
the Remarketed Preferred Stock, Series E. </FONT></P>
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&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 face="serif">&#147;S&amp;P&#148; means Standard &amp; Poor&#146;s, a division of The McGraw-Hill Companies, Inc. and includes any successor thereto. </FONT></P>
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&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 face="serif">&#147;S&amp;P Discounted Value,&#148; with respect to any asset held by the Corporation 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 S&amp;P 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>
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&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 face="serif">&#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 Corporation&#146;s assets in connection
with S&amp;P&#146;s rating of the RP. </FONT></P>
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&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 face="serif">&#147;S&amp;P Eligible Assets&#148; means assets of the Corporation 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 RP. </FONT></P>
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&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 face="serif">&#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;
provided, however, 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 Corporation, based on a
determination by the Board of Directors </FONT></P>
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<FONT face="serif">that such action is necessary or appropriate in connection with obtaining or maintaining the rating assigned by S&amp;P to the RP or revising the Corporation&#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 RP 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 RP. </FONT></P>
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&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 face="serif">&#147;S&amp;P Market Value,&#148; with respect to any asset of the Corporation, means the amount set forth in the S&amp;P Guidelines as the &#147;Market Value&#148; of such asset. </FONT></P>
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&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 face="serif">&#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>
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&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 face="serif">&#147;Securities Depository&#148; means The Depository Trust Company, a securities depository, or any successor company or other entity selected by the Corporation for the shares of RP that agrees to
follow the procedures required to be followed by such securities depository in connection with the shares of RP. </FONT></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;&#147;Service&#148; means the Internal Revenue Service.</FONT><BR>
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&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 face="serif">&#147;Settlement Date&#148; means any date on which (i) a new Dividend Period begins, and (ii) shares of RP which have been tendered and sold in a Remarketing are delivered through the Securities
Depository. </FONT></P>
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&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 face="serif">&#147;Substitute Commercial Paper Dealers&#148; means such Substitute Commercial Paper Dealer or Dealers as the Corporation may from time to time appoint or, in lieu of any thereof, their respective
affiliates or successors. </FONT></P>
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&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 face="serif">&#147;Substitute Rating Agency&#148; and &#147;Substitute Rating Agencies&#148; mean a nationally recognized statistical rating organization or two nationally recognized statistical rating
organizations, respectively, selected by the Corporation to act as the substitute rating agency or substitute rating agencies, as the case may be, to determine the credit ratings of the shares of RP.</FONT></P>
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&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 face="serif">&#147;Substitute Rating Agency Discounted Value,&#148; with respect to any Substitute Rating Agency and any asset held by the Corporation 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 Substitute Rating Agency Market Value of such asset applicable to such Substitute
Rating Agency divided by the Substitute Rating Agency Discount Factor applicable to such Substitute Rating Agency and such asset; provided, however, 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>
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&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 face="serif">&#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 Corporation&#146;s assets in connection with such Substitute Rating Agency&#146;s rating of the RP. </FONT></P>
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&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 face="serif">&#147;Substitute Rating Agency Eligible Assets,&#148; with respect to any Substitute Rating Agency, means assets of the Corporation 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 RP.
</FONT></P>
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&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 face="serif">&#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 RP; provided, however, 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 Corporation, 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 RP or revising the Corporation&#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 RP 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 RP. </FONT></P>
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&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 face="serif">&#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>
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&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 face="serif">&#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>
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&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 face="serif">&#147;Tender and Dividend Reset&#148; means the process pursuant to which shares of RP may be tendered or deemed tendered in a Remarketing or held and become subject to the new Applicable Dividend
Rate determined by the Remarketing Agency in such Remarketing. </FONT></P>
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&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 face="serif">&#147;Tender Date&#148; means any date on which (i) each holder of shares of RP must provide to the Remarketing Agent irrevocable telephonic notice of intent to tender shares of RP in a Remarketing,
and (ii) such Remarketing formally commences. </FONT></P>
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&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 face="serif">&#147;Valuation Date&#148; means the last Business Day of each week, or such other date as the Corporation and the Rating Agencies may agree upon for purposes of determining the Preferred Stock Basic
Maintenance Amount. </FONT></P>
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<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;&#147;Voting Period&#148; has the meaning set forth in paragraph 6(b) of this Part I. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fractional
Shares</U>. No fractional shares of RP shall be issued or recognized by the Corporation. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Dividends</FONT></U><FONT face="serif">.  (a)  The Holders as of 12:00 noon, New York City time, on the Business Day preceding the applicable Dividend Payment Dates,
shall be entitled to receive, when, as and if declared by the Board of Directors, out of funds legally available therefor, cumulative dividends each consisting of (i) cash at the Applicable Dividend Rate and (ii) a Right to receive cash determined
as set forth in paragraph 3(k) below and payable as set forth therein. The Board of Directors shall designate, in accordance with the applicable provisions of the Code, the cash dividends on the shares of RP so declared and paid or payable and on
the shares of Other RP declared and payable for any fiscal year as qualifying for the Dividends-Received Deduction in an amount equal to the lesser of (i) the amount of the Corporation&#146;s income for such fiscal year which qualifies for the
Dividends-Received Deduction, or (ii) the amount of such cash dividends. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
on shares of RP shall accumulate from their Date of Original Issue and will be
payable, when, as and if declared by the Board of Directors, on each Dividend
Payment Date. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Each
declared dividend, including each Right, shall be payable on the applicable Dividend
Payment Date to the Holder or Holders of such shares of RP as set forth in paragraph
3(a). Dividends on  any share in arrears for any past Dividend Payment Date may
be declared and paid at any time, without reference to any regular Dividend Payment
Date, to the Holder of such share on a date not exceeding five Business Days
preceding the payment date  thereof, as may be fixed by the Board of Directors.
Any dividend payment made on any share of RP shall first be credited against
the earliest dividends accumulated but unpaid (whether or not earned) with respect
to such share. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither Holders nor Beneficial Owners of shares of RP shall be entitled to any dividends on the shares of RP, whether payable in cash, property or stock, in excess of full cumulative dividends
(including Rights) thereon. Except as provided in paragraph 3(h) or 3(k) of this Part I, neither Holders nor Beneficial Owners of shares of RP shall be entitled to any interest, or other additional amount, on any dividend payment (including Rights)
on any share of RP which may be in arrears. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Except as otherwise provided herein, the Applicable Dividend Rate on each share of RP for each Dividend Period with respect to such share shall be equal to the rate per annum that results from
implementation of the remarketing procedures described in Part II hereof. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The amount of cash dividends for shares of RP payable (if declared) on each Dividend Payment Date shall be computed by the Corporation by multiplying the Applicable Dividend Rate in effect with
respect to cash dividends payable on such share on such Dividend Payment Date by a fraction the numerator of which shall be the number of days such share was outstanding from and including its Date of Original Issue or the preceding Dividend Payment
Date on which a cash dividend was paid, as the case may be, to and including the last day of such Dividend Period, and the denominator of which shall be 360, and then multiplying the percentage so obtained by &#36;100,000. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; No later than by 12:00 noon, New York City time, on each Dividend Payment Date, the Corporation shall deposit in same-day funds with the Paying Agent the full amount of</FONT></P>
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<FONT face="serif">any dividend declared and payable on such Dividend Payment Date on any share of RP. For the purposes of the foregoing, payment in New York Clearing House (next-day) funds at any time on any Business Day shall be considered
equivalent to payment in same-day funds on the next Business Day at the same time, and any payment made after 12:00 noon, New York City time, on any Business Day shall be considered to have been made instead in the form of funds before 12:00 noon,
New York City time, on the next Business Day. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(h) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Applicable Dividend Rate for each Dividend Period commencing during a Non-Payment Period shall be equal to the Non-Payment Period Rate. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except during a Non-Payment Period, by 1:00 p.m. on the Tender Date at the end of the Initial Dividend Period and by 1:00 p.m. on the Tender Date at the end of each subsequent Dividend Period, the
Beneficial Owner of a share of RP may elect to tender such share or to hold such share for the next Dividend Period. If the Beneficial Owner of such share of PR fails to elect to tender or hold such share by 1:00 p.m. on such Tender Date, such
Beneficial Owner shall continue to hold such share at the Applicable Dividend Rate determined in such Remarketing for the next Dividend Period; provided that, if there is no Remarketing Agent, the Remarketing Agent does not conduct a Remarketing or
the Remarketing Agent is unable to remarket in such Remarketing all shares of RP tendered to it at a price of &#36;100,000 per share, then such Beneficial Owner shall hold such share for the next Dividend Period and the Applicable Dividend Rate
therefor shall be the Maximum Dividend Rate. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In the event of a change in law altering the Minimum Holding Period, the Board of Directors may increase or decrease the period of time between Dividend Payment Dates so as to adjust uniformly the
number of days in any Dividend Period commencing after the date of such change in law to equal or exceed the then current Minimum Holding Period; provided that, the number of days for any Dividend Period as so adjusted shall not exceed 98 and shall
be evenly divisible by seven (except as required from time to time by adjustments in the remarketing schedule as provided herein). Upon any such adjustment by the Board of Directors, the Corporation shall notify the Remarketing Agent and the Paying
Agent, and the Paying Agent shall in turn notify the Securities Depository, of such adjustment; provided that, during a Non-Payment Period, the Corporation also shall notify the Beneficial Owners of shares of RP directly of such adjustment.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(k)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each dividend shall consist of (i) cash at the Applicable Dividend Rate and (ii) a right (a &#147;Right&#148;) to receive cash (as determined below).  Each Right shall thereafter be independent of
the share or shares of RP on which the dividend was paid. The Corporation shall cause to be maintained a record of each Right received by the respective Holders.  The Corporation shall not be required to recognize any transfer of a Right. If all or
any part of the cash dividends on the shares of RP during any fiscal year does not qualify for the Dividends-Received Deduction (&#147;Nonqualifying Distributions&#148;) because (i) the Corporation does not have income for such fiscal year eligible
for the Dividends-Received Deduction at least equal to the dividends paid on the RP and the Other RP for such year, or (ii) the Corporation does not properly designate dividends on the RP as being eligible for the Dividends-Received Deduction, the
applicable Rights shall entitle the holders thereof (&#147;Right Holders&#148;) to additional cash (as set forth below), and the Corporation will, within 270 days after the end of such fiscal year, provide notice thereof to the Paying Agent. The
Paying Agent will mail a copy of such notice to each</FONT></P>
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<FONT face="serif">Right Holder at the address set forth for such Right Holder in the records of the Paying Agent as promptly as practicable after its receipt of such notice from the Corporation. The Corporation will within 30 days after such notice
is given to the Paying Agent pay to the Paying Agent (who will then distribute to Right Holders), out of funds legally available therefor, cash in satisfaction of the applicable Rights in an amount specified below with respect to all Nonqualifying
Distributions made during such fiscal year. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Cash payable pursuant to a Right shall be paid to the Right Holder thereof in an amount which, when taken together with the aggregate Nonqualifying Distributions paid to such Right Holder during any
fiscal year, would cause such Right Holder&#146;s net yield in dollars (after Federal income tax consequences) from the aggregate of both the Nonqualifying Distributions and the cash receivable pursuant to such Right to be equal to the net yield in
dollars (after Federal income tax consequences) which would have been received by such Right Holder if the amount of the aggregate Nonqualifying Distributions would have qualified for the Dividends-Received Deduction in the hands of such Right
Holder.  Such cash receivable on such Right shall be calculated without consideration being given to the time value of money and using the applicable maximum marginal corporate Federal tax rate in effect at the time such Right was declared.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Corporation may estimate the amount payable in respect of any Right and pay all or any portion of such estimated amount prior to the end of the fiscal year in which such Right was declared.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">If, for any fiscal year, all cash dividends paid at the Applicable Dividend Rate on the shares of RP are eligible in full for the Dividends-Received Deduction, then the amount payable to holders of
Rights applicable to that year shall be zero. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Redemption</FONT></U><FONT face="serif">. Shares of RP shall be redeemable by the Corporation as provided below: </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent permitted under the Investment Company Act and Maryland law, the
Corporation at its option, upon giving a Notice of Redemption, may redeem shares
of RP, in whole or in part, on the  next succeeding scheduled Dividend Payment
Date, out of funds legally available therefor, at a redemption price equal to &#36;100,000
per share plus an amount equal to cash dividends thereon (whether or not earned
or declared) accumulated but unpaid  to the date fixed for redemption. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Corporation shall redeem, out of funds legally available therefor, at a redemption price of &#36;100,000 per share plus an amount equal to cash dividends thereon (whether or not earned or
declared) accumulated but unpaid to the date of redemption, shares of RP to the extent permitted under the Investment Company Act and Maryland law, on a date fixed by the Board of Directors, if the Corporation fails to maintain either Preferred
Stock Basic Maintenance Amount or the Investment Company Act Preferred Stock Asset Coverage and such failure is not cured on or before the Preferred Stock Basic Maintenance Cure Date or the Investment Company Act Cure Date (herein referred to as the
&#147;Cure Date&#148;), as the case may be. The number of shares to be redeemed shall be equal to the lesser of (i) the minimum number of shares of RP the redemption of which, if deemed to have occurred immediately prior to the opening of business
on the Cure Date, together with all shares of other Preferred Stock subject to redemption or </FONT></P>
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<FONT face="serif">retirement, would result in the satisfaction of the relevant Preferred Stock Basic Maintenance Amount or the Investment Company Act Preferred Stock Asset Coverage, as the case may be, on such Cure Date (provided that, if there is
no such minimum number of shares the redemption of which would have such result, all shares of RP then outstanding shall be redeemed), and (ii) the maximum number of shares of RP that can be redeemed out of funds expected to be legally available
therefor on such redemption date. In determining the number of shares of RP required to be redeemed in accordance with the foregoing, the Corporation shall allocate the amount required to achieve the relevant Preferred Stock Basic Maintenance Amount
or the Investment Company Act Preferred Stock Asset Coverage, as the case may be, pro rata among the RP and the Other Preferred Stock. The Corporation shall effect such redemption not later than 41 days after such Cure Date, except that if the
Corporation does not have funds legally available for the redemption of all of the required number of shares of RP which are subject to mandatory redemption or the Corporation otherwise is unable to effect such redemption on or prior to such Cure
Date, the Corporation shall redeem those shares of RP which it was unable to redeem on the earliest practicable date on which it is able to effect such redemption. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Subject to paragraph 4(d) of this Part I, if fewer than all the outstanding shares of RP are to be redeemed pursuant to this paragraph 4, the number of shares of RP so to be redeemed shall be a
whole number of shares and shall be determined by the Board of Directors, and the Corporation shall give a Notice of Redemption as provided in paragraph 4(e) of this Part I. Unless certificates representing shares of RP are held by Holders other
than the Securities Depository or its nominee, the Securities Depository, upon receipt of such notice, shall determine by lot the number of shares of RP to be redeemed from the account of each Agent Member (which may include an Agent Member holding
shares for its own account, including the Remarketing Agent) and notify the Paying Agent of such determination.  The Paying Agent, upon receipt of such notice, shall in turn determine by lot the number of shares of RP to be redeemed from the
accounts of the Beneficial Owners of the shares of RP whose Agent Members have been selected by the Securities Depository and give notice of such determination to the Remarketing Agent. In doing so, the Paying Agent may determine that shares of RP
shall be redeemed from the accounts of some Beneficial Owners, which may include the Remarketing Agent, without shares of RP being redeemed from the accounts of other Beneficial Owners. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Notwithstanding paragraph 4(c) of this Part I, if certificates representing shares of RP are held by Holders other than the Securities Depository or its nominee, then the number of shares of RP to
be redeemed shall be determined by the Board of Directors and the shares to be redeemed shall be selected by the Corporation by lot. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Any Notice of Redemption shall be given by the Corporation to the Paying Agent, the Securities Depository (and any other Holder) and the Remarketing Agent, by telephone, not later than 3:00 p.m.,
New York City time (and later confirmed in writing) on (A) in the case of optional redemption pursuant to paragraph 4(a) of this Part I (i) the Settlement Date in the case of a partial redemption of the shares of RP, (ii) the Tender Date in the case
of a redemption in whole of the shares of RP or (iii) during a Non-Payment Period, the later of the Dividend Payment Date and the seventh day, in each case prior to the earliest date upon which any such redemption shall occur and (B) in the case of
mandatory redemption pursuant to paragraph 4(b) of this Part I, on the fifth Business Day prior to the redemption date. In the case of a partial redemption of the shares of PR, the Paying Agent shall use reasonable efforts to</FONT></P>
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<FONT face="serif">provide telephonic notice to each Beneficial Owner of shares of RP called for redemption not later than the close of business on the Business Day on which the Paying Agent determines the shares to be redeemed, as described in
paragraph 4(c) if this Part I (or, during a Non-Payment Period, not later than the close of business on the Business Day immediately following the day on which the Paying Agent receives a Notice of Redemption from the Corporation). In the case of a
redemption in whole of the shares of RP, the Paying Agent shall use reasonable efforts to provide telephonic notice to each Beneficial Owner not later than the close of business on the Business Day immediately following the day on which it receives
a Notice of Redemption from the Corporation. In any case described in clause (i) or (iii) of the first sentence of this paragraph 4(e), such telephonic notice shall be confirmed promptly in writing not later than the close of business on the third
Business Day preceding the redemption date by notice sent by the Paying Agent to each Beneficial Owner of shares of RP called for redemption, the Remarketing Agent and the Securities Depository. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Every Notice of Redemption and other redemption notice shall state: (i) the redemption date; (ii) the number of shares of RP to be redeemed; (iii) the redemption price; (iv) that dividends on the
shares of RP to be redeemed shall cease to accumulate as of such redemption date; and (v) the provision pursuant to which such shares are being redeemed. In addition, notice of redemption given to a Beneficial Owner shall state the CUSIP number, if
any, of the shares of RP to be redeemed and the manner in which the Beneficial Owners of such shares may obtain payment of the redemption price. No defect in the Notice of Redemption or other redemption notice or in the transmittal or the mailing
thereof shall affect the validity of the redemption proceedings, except as required by applicable law. The Paying Agent shall use its reasonable efforts to cause the publication of a redemption notice in an Authorized Newspaper within two Business
Days of the date of the Notice of Redemption, but failure so to publish such notification shall not affect the validity or effectiveness of any such redemption proceedings. Shares of RP the Beneficial Owners of which shall have been given Notice of
Redemption shall not be subject to transfer outside a Remarketing. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; On any redemption date, the Corporation shall deposit, irrevocably in trust, in same-day funds, with the Paying Agent, by 12:00 noon, New York City time, the price to be paid on such redemption
date of any shares of RP plus an amount equal to cash dividends thereon accumulated but unpaid to such redemption date (whether or not earned or declared). For the purposes of the foregoing, payment in New York Clearing House (next-day) funds at any
time on any Business Day shall be considered equivalent to payment in same-day funds on the next Business Day at the same time, and any payment made after 12:00 noon, New York City time, on any Business Day shall be considered to have been made
instead in the same form of funds before 12:00 noon, New York City time, on the next Business Day. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In connection with any redemption, upon the giving of a Notice of Redemption and the deposit of the funds necessary for such redemption with the Paying Agent in accordance with this paragraph 4,
all rights of the Holders of shares of RP so called for redemption shall cease and terminate, except the right of the Holders thereof to receive the redemption price thereof, inclusive of an amount equal to cash dividends (whether or not earned or
declared) accumulated but unpaid to the redemption date but without any interest or other additional amount (except as provided in paragraph 3(h) or 3(k) of this Part I), and such shares shall no longer be deemed outstanding for any purpose.  The
Corporation shall be entitled to</FONT></P>
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<FONT face="serif">receive from the Paying Agent, promptly after the date fixed for redemption, any cash deposited with the Paying Agent as aforesaid in excess of the sum of (i) the aggregate redemption price of the shares of RP called for
redemption on such date and (ii) all other amounts to which Holders of shares of RP called for redemption may be entitled. Any funds so deposited with the Paying Agent which are unclaimed at the end of ninety days from such redemption date shall, to
the extent permitted by law, be repaid to the Corporation, after which time the Holders of shares of RP so called for redemption shall look only to the Corporation for payment of the redemption price and all other amounts to which they may be
entitled. The Corporation shall be entitled to receive, from time to time after the date fixed for redemption, any interest on the funds so deposited. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(i) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;To the extent that any redemption for which Notice of Redemption has been given is not made by reason of the absence of legally available funds therefor, such redemption shall be made as soon as
practicable to the extent such funds become available.  Failure to redeem shares of RP shall be deemed to exist at any time after the date specified for redemption in a Notice of Redemption when the Corporation shall have failed, for any reason
whatsoever, to deposit funds with the Paying Agent pursuant to paragraph 4(g) of this Part I with respect to any shares for which such Notice of Redemption has been given. Notwithstanding the fact that the Corporation shall not have redeemed shares
of RP for which a Notice of Redemption has been given, dividends may be declared and paid on shares of RP and shall include those shares of RP for which a Notice of Redemption has been given. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(j) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding the foregoing, (i) no share of RP may be redeemed pursuant to paragraph 4(a) of this Part I unless the full amount of accumulated but unpaid cash dividends to the date fixed for
redemption for each such share of RP called for redemption shall have been declared, and (ii) no share of RP may be redeemed unless all outstanding shares of RP are simultaneously redeemed, nor may any shares of RP be purchased or otherwise acquired
by the Corporation except in accordance with a purchase offer made on substantially equivalent terms by the Corporation for all outstanding shares of RP, unless, in each such instance, cash dividends on all outstanding shares of RP through the end
of their most recently ended Dividend Period (or, if such transaction is on a Dividend Payment Date, through the Dividend Period ending on the day prior to such Dividend Payment Date) shall have been paid or declared and sufficient funds for the
payment thereof deposited with the Payment Agent. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(k) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except as set forth in this paragraph 4 with respect to redemptions and subject to paragraph 4(j) hereof, nothing contained herein shall limit any legal right of the Corporation or any affiliate
to purchase or otherwise acquire any share of RP at any price. Any shares of RP which have been redeemed, purchased or otherwise acquired by the Corporation or any affiliate thereof may be resold.  In lieu of redeeming shares called for redemption,
the Corporation shall have the right to arrange for other purchasers to purchase from Beneficial Owners all shares of RP to be redeemed pursuant to this paragraph 4 by their paying to such Beneficial Owners on or before the close of business on the
redemption date an amount equal to not less than the redemption price payable by the Corporation on the redemption of such shares, and the obligation of the Corporation to pay such redemption price shall be satisfied and discharged to the extent
such payment is so made by such purchasers. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(l) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any of the foregoing provisions of this paragraph 4, the Remarketing Agent may, in its sole discretion modify the procedures set forth above with respect to notification of
redemption, provided that, any such modification does not adversely affect any Holder or Beneficial Owner of shares of RP. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Liquidation</FONT></U><FONT face="serif">. (a) Upon a liquidation, dissolution or winding up of the affairs of the Corporation, whether voluntary or involuntary, the
Holders shall be entitled, whether from capital or surplus, before any assets of the Corporation shall be distributed among or paid over to holders of Common Stock or any other class or series of stock of the Corporation junior to the RP as to
liquidation payments, to be paid the amount of &#36;100,000 per share of RP, plus an amount equal to all accumulated but unpaid dividends thereon (whether or not earned or declared) to and including the date of final distribution. After any such
payment, the Holders shall not be entitled to any further participation in any distribution of assets of the Corporation. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If, upon any such liquidation, dissolution or winding up of the Corporation, the assets of the Corporation shall be insufficient to make such full payments to the Holders and the holders of any
Preferred Stock ranking as to liquidation, dissolution or winding up on a parity with the RP, then such assets shall be distributed among the Holders and such parity holders ratably in accordance with the respective amounts which would be payable on
such shares of RP and any other such Preferred Stock if all amounts thereon where paid in full. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither the consolidation nor the merger of the Corporation with or into any corporation or corporations nor a reorganization of the Corporation alone nor the sale or transfer by the Corporation
of all or substantially all of its assets shall be deemed to be a dissolution or liquidation of the Corporation. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Voting Rights</FONT></U><FONT face="serif">. (a) </FONT><U><FONT face="serif">General</FONT></U><FONT face="serif">. Each Holder of shares of RP shall be entitled to
one vote for each share held on each matter submitted to a vote of stockholders of the Corporation and, except as otherwise provided in the Investment Company Act, the Charter or the Bylaws or as described below, the holders of shares of Preferred
Stock, including RP, and of shares of Common Stock shall vote together as one class. Prior to the issuance of any RP, the Board of Directors by resolution shall designate two existing directors representing holders of Preferred Stock. At the first
meeting of stockholders for which the record date is a date on which shares of Preferred Stock are outstanding, the holders of Preferred Stock entitled to vote at such meeting shall have the right as a class, to the exclusion of the holders of the
common stock, to elect two directors of the Corporation who shall serve for the unexpired terms of the directors originally designated by the Board of Directors as directors representing holders of Preferred Stock; except that, if such meeting is an
annual meeting of stockholders at which the term of one of such designated directors expires, the director so elected to succeed the designated director shall be elected for a term expiring at the time of the third succeeding annual meeting of
stockholders, or thereafter when his successor is elected and qualified. Thereafter, the holders of Preferred Stock shall have the right as a class, to the exclusion of the holders of the common stock, to elect directors to succeed either of the
directors representing the Preferred Stock whose terms are expiring or whose seats on the Board of Directors are vacant. Subject to paragraph 6(b) hereof, the holders of a majority of the shares of Common Stock shall elect the balance of the
directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Right to Elect Majority of Board of Directors</FONT></U><FONT face="serif">. During any period in which any one or more of the conditions described below 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 number of directors then constituting
the Board of Directors, shall (together with the two directors elected by the holders of Preferred Stock, including RP, pursuant to paragraph 6(a)) constitute a majority of such increased number, and the holders of a majority of Preferred Stock,
including RP, shall be entitled, voting as a single class on a one-vote-per-share basis (to the exclusion of the holders of all other securities and classes of capital stock of the Corporation), to elect the smallest number of additional directors
of the Corporation that shall constitute a majority of the total number of directors of the Corporation so increased. A Voting Period shall commence if at the close of business on any Dividend Payment Date accumulated dividends (whether or not
earned or declared, and whether or not funds are then legally available in an amount sufficient therefor) on the outstanding shares of RP 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 Paying Agent for the payment of such accumulated dividends. Upon the termination of a Voting Period, the voting rights described in this paragraph 6(b) shall cease, subject always, however, to the
revesting of such voting rights in the holders of Preferred Stock, including RP, upon the further occurrence of any of the events described in this paragraph 6(b). </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT>(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Voting Procedures</FONT></U><FONT face="serif">. </FONT></P>
<P align=justify>
&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;<FONT face="serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;As soon as practicable after the accrual of any right of the holders of Preferred
Stock, including RP, to elect a majority of directors, the Corporation shall
notify the Paying Agent and Paying  Agent shall call a special meeting of the
holders of Preferred Stock, including RP, and shall mail a notice of such special
meeting to such holders not less than 10 nor more than 20 days after the date
of mailing of such notice. If the Corporation  fails to send such notice to the
Paying Agent or if the Paying Agent does not call such a special meeting, it
may be called by any holder of Preferred Stock, including RP, on like notice.
The record date for determining the holders of Preferred  Stock, including RP,
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 held during a  Voting
Period, the holders of Preferred Stock, including RP, voting together as a class
(to the exclusion of the holders of all other securities and classes of capital
stock of the Corporation), shall be entitled to elect the number of directors
 prescribed in paragraph 6(b) above on a one-vote-per-share basis. At any such
meeting or adjournment thereof in the absence of a quorum, a majority of the
holders of Preferred Stock, including RP, present in person or by proxy, shall
have the power  to adjourn the meeting without notice, other than an announcement
at the meeting, until a quorum is present; provided, however, that no such meeting
may be adjourned to a date more than 120 days from the original record date without
notice.
</FONT></P>
<P align=justify>
&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;<FONT face="serif"></FONT><FONT face="serif">(ii) &nbsp;&nbsp;For
purposes of determining any rights of the Holders to vote on any matter, whether
such right is created by this Article Fourteenth, by statute or otherwise, no
Holder shall be entitled to vote  and no share of RP 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, sufficient funds for the redemption of such </FONT></P>
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<FONT face="serif">shares have been deposited in trust with the Paying Agent for that purpose and the requisite Notice of Redemption with respect to such shares shall have been given as provided in paragraph 4 of this Part I. No share of RP held by
the Corporation or any affiliate of the Corporation shall have any voting rights or be deemed to be outstanding for voting purposes. </FONT></P>
<P align=justify>
&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;<FONT face="serif"></FONT><FONT face="serif">(iii)&nbsp;&nbsp; The terms of office of all persons who are directors of the Corporation at the time of a special meeting of holders of Preferred Stock, including RP, to elect directors shall continue,
notwithstanding the election at such meeting by such holders of the number of directors that they are entitled to elect, and the persons so elected by such holders, together with the incumbent directors elected by the holders of the Common Stock,
shall constitute the duly elected directors of the Corporation. </FONT></P>
<P align=justify>
&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;<FONT face="serif"></FONT><FONT face="serif">(iv)&nbsp;&nbsp;  Simultaneously with the expiration of a Voting Period, the terms of office of the additional directors elected by the holders of Preferred Stock, including RP, shall terminate, the incumbent
directors who shall have been elected by the holders of the Common Stock (or by the Board of Directors at a time which was not during a Voting Period) and the two incumbent directors the holders of Preferred Stock, including RP, have the right to
elect in any event shall constitute the directors of the Corporation and the voting rights of such holders to elect additional directors shall cease. </FONT></P>
<P align=justify>
&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;<FONT face="serif"></FONT><FONT face="serif">(v) &nbsp;&nbsp;The directors elected by the holders of Preferred Stock, including RP, shall (subject to the provisions of any applicable law) be subject to removal only by the vote of the holders of a majority
of the shares of Preferred Stock, including RP, outstanding.  Any vacancy on the Board of Directors occurring by reason of such removal or otherwise may be filled only by vote of the holders of at least a majority of shares of Preferred Stock,
including RP, outstanding, and if not so filled such vacancy shall (subject to the provisions of any applicable law) be filled by a majority of the remaining directors (or the remaining director) who were elected by such holders. Any other vacancy
on the Board of Directors during a Voting Period shall be filled by a vote of the holder or holders of Common Stock. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Right to Vote on Certain Other Matters</FONT></U><FONT face="serif">. So long as any shares of RP are outstanding, the Corporation shall not, subject to the
requirements of the Investment Company Act and Maryland law, without the affirmative vote or consent of the holders of at least two-thirds of the votes of the shares of RP 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 stock ranking prior to the RP with respect to payment of dividends or the distribution of assets on
liquidation, or (b) amend, alter or repeal the provisions of the Charter including this Article Fourteenth, whether by merger, consolidation or otherwise, so as to materially and adversely affect any right, preference, privileges or voting power of
such shares of RP or the Holders thereof; provided that, any increase in the amount of the authorized RP 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 remarketed preferred stock, in each case ranking on a parity with or junior to the RP, will not be deemed to materially and adversely affect such rights, preferences, privileges or voting powers unless such issuance would cause the
Corporation not to satisfy the Investment Company Act Preferred Stock Asset Coverage or either Preferred Stock Basic Maintenance Amount. Unless a higher percentage is provided for under the Charter, the affirmative vote of</FONT></P>
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<FONT face="serif">the holders of a majority of the outstanding shares of Preferred Stock including RP, 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 Investment Company Act. For purposes of the foregoing, &#147;majority of the outstanding Preferred Stock&#148; shall mean (i) 67% or more of the shares of Preferred Stock present at a meeting, if
the holders of more than 50% of such shares are present or represented by proxy or (ii) more than 50% of such shares, whichever is less. The class vote of holders of shares of Preferred Stock, including RP, 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 RP, necessary to authorize the action in question. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">The foregoing voting provisions shall not apply if, at or prior to the time when the act with respect to which such vote would otherwise be required shall be effected, all outstanding shares of RP
shall have been redeemed or called for redemption and sufficient funds shall have been deposited in trust to effect such redemption. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Exclusive Remedy</FONT></U><FONT face="serif">. Unless otherwise required by law, the Holders of shares of RP shall not have any relative rights or preferences or
other special rights other than those specifically set forth herein. The Holders of shares of RP shall have no preemptive rights. In the event that the Corporation fails to pay any dividends on the shares of RP, the exclusive remedy of the Holders
shall be the right to vote for directors pursuant to the provisions of this paragraph 6. In no event shall the Holders of shares of RP have any right to sue for, or bring a proceeding with respect to, such dividends or redemptions or damages for the
failure to receive the same. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Voting by Series</FONT></U><FONT face="serif">. In addition to any vote of the requisite percentage of shares of Common Stock and shares of Preferred Stock, including
RP, 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 RP, 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. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Investment Company Act Preferred Stock Asset Coverage</FONT></U><FONT face="serif">. The Corporation shall maintain, as of the last Business Day of each month in which
any share of RP is outstanding, the Investment Company Act Preferred Stock Asset Coverage. </FONT></P>
<P align=justify>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Preferred Stock Basic Maintenance Coverage</FONT></U><FONT face="serif">. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Fund shall maintain, on each Valuation Date, (i) if Moody&#146;s is then rating the RP, 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 RP, 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 RP, 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>
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<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(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 Corporation shall complete and deliver to the Remarketing Agent and the Paying Agent a
Preferred Stock Basic Maintenance Report, which will be deemed to have been delivered to the Remarketing Agent and the Paying Agent if the Remarketing Agent and the Paying Agent receive a copy or telecopy, telex or other electronic transcription
thereof and on the same day the Corporation mails to the Remarketing Agent and the Paying Agent for delivery on the next Business Day the full Preferred Stock Basic Maintenance Report. A failure by the Corporation to deliver a Preferred Stock Basic
Maintenance Report under this paragraph 8(b) without the prior consent of the Remarketing 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
Corporation is less than the Preferred Stock Basic Maintenance Amount, as of the relevant Valuation Date. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(c) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Within ten Business Days after the date of delivery to the Remarketing Agent and the Paying Agent of a Preferred Stock Basic Maintenance Report in accordance with paragraph 8(b) above relating to
a Annual Valuation Date, the Independent Accountant will confirm in writing to the Remarketing Agent and the Paying Agent (i) the mathematical accuracy of the calculations reflected in such Report, (ii) that, in such Report, the Corporation
determined in accordance with this Article Fourteenth the assets of the Corporation which constitute Eligible Assets at such Annual Valuation Date, (iii) that, in such Report, the Corporation determined in accordance with this Article Fourteenth
whether the Corporation 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
Corporation, 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 Corporation, 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 Corporation, 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 Corporation&#146;s assets to the Corporation for purposes of valuing securities in the Corporation&#146;s portfolio, the Independent Accountant has traced the
price used in such Report to the bid or mean price listed in the Corporation&#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 </FONT></P>
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<FONT face="serif">Confirmation&#148;). If any Accountant&#146;s Confirmation delivered pursuant to this paragraph 8(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 Corporation 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 Corporation, and the Corporation shall accordingly amend the Preferred Stock Basic Maintenance Report to the Remarketing Agent and Paying Agent promptly following receipt by the Remarketing Agent and the Paying Agent of such
Accountant&#146;s Confirmation.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Restrictions on Certain Distributions</FONT></U><FONT face="serif">.  For so long as any share of RP is outstanding, the Corporation 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 RP as to
dividends or upon liquidation) in respect of the Common Stock or any other stock of the Corporation ranking junior to or on a parity with the shares of RP 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 Corporation ranking junior to the shares of RP as to dividends and upon liquidation) or any other such
parity stock (except by conversion into or exchange for stock of the Corporation ranking junior to or on a parity with the shares of RP 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 RP and shares of Other Preferred Stock 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) any Right required to be paid under paragraph 3(k) of this Part I on or before the date of such declaration or payment has been
paid and (D) the Corporation has redeemed the full number of shares of RP required to be redeemed by any provision for mandatory redemption contained herein. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Notice</FONT></U><FONT face="serif">. All notices or communications, unless otherwise specified in the Bylaws of the Corporation or this Article Fourteenth, shall be
sufficiently given if in writing and delivered in person or mailed by first-class mail, postage prepaid. Notice shall be deemed given on the earlier of the date received or the date seven days after which such notice is mailed. </FONT></P>
<P align=justify>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Certain Rating Agency Requirements and Restrictions</FONT></U><FONT face="serif">. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
so long as any shares of RP are outstanding and Moody&#146;s is then rating the
RP, 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 RP.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For
so long as any shares of RP are outstanding and S&amp;P is then rating the RP,
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</FONT></P>
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<FONT face="serif">written confirmation from S&amp;P that such noncompliance would not adversely affect the rating then assigned by S&amp;P to the RP. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For so long as any shares of RP are outstanding and any Substitute Rating Agency is then rating the RP, 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 RP. </FONT></P>
<p align="center"><U><FONT face="serif">PART II.</FONT></U></p>
<p align="center"><FONT face="serif">REMARKETING PROCEDURES</FONT></p>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Remarketing Schedule</FONT></U><FONT face="serif">.  Each Remarketing shall take place over a three-day period consisting of the Tender Date, the Dividend Reset Date
and the Settlement Date. Such dates or the method of establishing such dates shall be determined by the Board of Directors from time to time. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Procedure for Tendering</FONT></U><FONT face="serif">. (a) Each share of RP is subject to Tender and Dividend Reset only at the end of each Dividend Period and may be
tendered in a Remarketing only on the Tender Date immediately prior to the end of the current Dividend Period. By 12:00 noon, New York City time, on each such Tender Date, the Remarketing Agent shall, after canvassing the market and considering
prevailing market conditions at the time for shares of RP and similar securities, provide Beneficial Owners non-binding indications of Applicable Dividend Rates for the next Dividend Period. The actual Applicable Dividend Rate for such Dividend
Period may be greater than or less than the rate per annum indicated in such non-binding indications (but not greater than the applicable Maximum Dividend Rate). By 1:00 p.m., New York City time, on such Tender Date, each Beneficial Owner of shares
of RP must notify the Remarketing Agent of its desire, on a share-by-share basis, either to tender such share of RP at a price of &#36;100,000 per share or to continue to hold such share of RP for the next Dividend Period. Any notice given to the
Remarketing Agent to tender or hold shares for a particular Dividend Period shall be irrevocable and shall not be conditioned upon the level at which the Applicable Dividend Rate is established. Any such notice may not be waived by the Remarketing
Agent, except that prior to 4:00 p.m., New York City time, on the Dividend Reset Date, the Remarketing Agent may, in its sole discretion (i) at the request of a Beneficial Owner that has tendered one or more shares to the Remarketing Agent,
contingently waive such Beneficial Owner&#146;s tender and thereby enable such Beneficial Owner to continue to hold the share or shares for the next Dividend Period as agreed to by such Beneficial Owner and the Remarketing Agent at such time, so
long as such tendering Beneficial Owner has indicated to the Remarketing Agent that it would accept the new Applicable Dividend Rate for such Dividend Period, such waiver to be contingent upon the Remarketing Agent&#146;s ability to remarket all
shares of RP tendered in such Remarketing, and (ii) at the request of a Beneficial Owner that has elected to hold one or more of its shares of RP, waive such Beneficial Owner&#146;s election with respect thereto. </FONT></P>
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<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The right of each Beneficial Owner to tender shares of RP in a Remarketing therefor shall be limited to the extent that (i) the Remarketing Agent conducts a Remarketing pursuant to the terms of
the Remarketing Agreement, (ii) shares tendered have not been called for redemption and (iii) the Remarketing Agent is able to find a purchaser or purchasers for tendered shares of RP at an Applicable Dividend Rate for the next Dividend Period that
is not in excess of the Maximum Dividend Rate. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Determination of Applicable Dividend Rates</FONT></U><FONT face="serif">. (a) Between 1:00 p.m., New York City time, on each Tender Date and 4:00 p.m., New York City
time, on the succeeding Dividend Reset Date, the Remarketing Agent shall determine the Applicable Dividend Rate to the nearest one-thousandth (0.001) of one percent per annum for the next Dividend Period. The Applicable Dividend Rate for such
Dividend Period, except as otherwise required herein, shall be the rate per annum which the Remarketing Agent determines, in its sole judgment, to be the lowest rate, giving effect to such allocation, that will enable it to remarket on behalf of the
Beneficial Owners thereof all shares of RP tendered to it at a price of &#36;100,000 per share. </FONT></P>
<P align=justify>
<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;<FONT face="serif"></FONT></FONT><FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If no Applicable Dividend Rate shall have been established on a Dividend Reset Date in a Remarketing for the next Dividend Period for any reason (other than because there is no Remarketing Agent
or the Remarketing Agent is not required to conduct a Remarketing pursuant to the terms of the Remarketing Agreement), then the Remarketing Agent, except during a Non-Payment Period, in its sole discretion, shall, after taking into account market
conditions as reflected in the prevailing yields of fixed and variable rate taxable and tax-exempt debt securities and the prevailing dividend yields of fixed and variable rate preferred stock, if necessary, determine the Applicable Dividend Rate
that would be the initial dividend rate fixed in an offering on such Dividend Reset Date, assuming in each case a comparable dividend period, issuer and security. If there is no Remarketing because there is no Remarketing Agent or the Remarketing
Agent is not required to conduct a Remarketing pursuant to the Remarketing Agreement, then, except during a Non-Payment Period, the Applicable Dividend Rate for each subsequent Dividend Period for which no Remarketing takes place because of the
foregoing shall be the applicable Maximum Dividend Rate. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In determining such Applicable Dividend Rate, the Remarketing Agent shall, after taking into account market conditions as reflected in the prevailing yields of fixed and variable rate taxable and
tax-exempt debt securities and the prevailing dividend yields of fixed and variable rate preferred stock, in providing non-binding indications of the Applicable Dividend Rate to Beneficial Owners and potential purchasers of shares of RP, (i)
consider the number of shares of RP tendered and the number of shares of RP potential purchasers are willing to purchase and (ii) contact by telephone or otherwise current and potential Beneficial Owners of shares of RP and ascertain the dividend
rates at which they would be willing to hold shares of RP. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Applicable Dividend Rate shall be determined as aforesaid by the Remarketing Agent in its sole discretion (except as otherwise provided in this Article Fourteenth with respect to Applicable
Dividend Rates that shall be the Non-Payment Period Rate and Maximum Dividend Rate) and shall be conclusive and binding on Holders and Beneficial Owners. </FONT></P>
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  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(f) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Except during a Non-Payment Period, the Applicable Dividend Rate for any Dividend Period shall not be more than the applicable Maximum Dividend Rate. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Allocation of Shares; Failure to Remarket at &#36;100,000 Per Share</FONT></U><FONT face="serif">.  (a)  If the Remarketing Agent is unable to remarket by 4:00 p.m.,
New York City time, on any Dividend Reset Date all shares of RP tendered to it in the related Remarketing at a price of &#36;100,000 per share (i) each Beneficial Owner that tendered shares of RP for sale shall sell a number of shares of RP on a pro
rata basis, to the extent practicable, or by lot, as determined by the Remarketing Agent in its sole discretion based on the number of orders to purchase shares of RP in such Remarketing; and (ii) the Applicable Dividend Rate for the next Dividend
Period shall be the Maximum Dividend Rate. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;If the allocation procedures described above would result in the sale of a fraction of a share of RP, the Remarketing Agent shall, in its sole discretion, round up or down the number of shares of
RP sold by each Beneficial Owner on such Dividend Reset Date so that each share sold by a Beneficial Owner shall be a whole share of RP and the total number of shares sold equals the total number of shares bought on such Dividend Reset Date.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Notification of Results; Settlement</FONT></U><FONT face="serif">. (a) By telephone at approximately 4:30 p.m., New York City time, on each Dividend Reset Date the
Remarketing Agent shall advise each Beneficial Owner of tendered shares and each purchaser thereof (or the Agent Member thereof) (i) of the number of shares such Beneficial Owner or purchaser is to sell or purchase and (ii) to give instructions to
its Agent Member to deliver such shares against payment therefor or to pay the purchase price against delivery as appropriate. The Remarketing Agent will also advise each Beneficial Owner or purchaser that is to continue to hold, or to purchase,
shares for the Dividend Periods beginning on the Business Day following such Dividend Reset Date of the Applicable Dividend Rate for such Dividend Period. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; In accordance with the Securities Depository&#146;s normal procedures, on the Settlement Date, the transactions described above with respect to each share of RP shall be executed through the
Securities Depository, if the Securities Depository or its nominee holds or is to hold the certificates relating to the shares to be purchased, and the accounts of the respective Agent Members of the Securities Depository shall be debited and
credited and shares delivered by book entry as necessary to effect the purchases and sales of shares of RP.  Purchasers of shares of RP shall make payment to the Paying Agent in same-day funds against delivery to other purchasers or their nominees
of one or more certificates representing shares of RP, or, if the Securities Depository or its nominee holds or is to hold the certificates relating to the shares to be purchased, through their Agent Members in same-day funds to the Securities
Depository against delivery through their Agent Members by book entry of shares of RP or as otherwise required by the Securities Depository.  The Securities Depository shall make payment in accordance with its normal procedures. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If any Beneficial Owner selling shares of RP in a Remarketing fails to deliver such shares, the Agent Member of such selling Beneficial Owner and of any other person that was to have purchased
shares of RP in such Remarketing may deliver to any such other person a number of whole shares of RP that is less than the number of shares that otherwise was to be purchased by such person. In such event, the number of shares of RP to be so
delivered</FONT></P>
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<FONT face="serif">shall be determined by such Agent Member. Delivery of such lesser number of shares of RP shall constitute good delivery. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Remarketing Agent, the Paying Agent and the Securities Depository each will use its reasonable commercial efforts to meet the timing requirements set forth in paragraphs (a) and (b) above;
provided that, in the event that there is a delay in the occurrence of any delivery or other event connected with a Remarketing, the Remarketing Agent, the Paying Agent and the Securities Depository each will use its reasonable commercial efforts to
accommodate such delay in furtherance of the Remarketing. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(e) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding any of the foregoing provisions of this paragraph 5, the Remarketing Agent may, in its sole discretion, modify the settlement procedures set forth above with respect to settlement,
provided any such modification does not adversely affect the Beneficial Owners or the Holders of RP or the Corporation. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Purchase of Shares of RP by Remarketing Agent</FONT></U><FONT face="serif">. The Remarketing Agent may purchase for its own account shares of RP in a Remarketing,
provided that it purchases all tendered (or deemed tendered) shares of RP not sold in such Remarketing to other purchasers and that the Applicable Dividend Rate established in such Remarketing is no higher than the Applicable Dividend Rate that
would have been established if the Remarketing Agent had not purchased such shares.  Except as provided in the previous sentence, the Remarketing Agent shall not be obligated to purchase any shares of RP that would otherwise remain unsold in a
Remarketing.  If the Remarketing Agent owns any shares of RP subject to a Remarketing immediately prior to a Remarketing and if all other shares subject to such Remarketing and tendered for sale by other Beneficial Owners of shares of RP have been
sold in such Remarketing, then the Remarketing Agent may sell such number of its shares in such Remarketing as there are outstanding orders to purchase that have not been filled by such shares tendered for sale by other Beneficial Owners. Neither
the Corporation, the Paying Agent nor the Remarketing Agent shall be obligated in any case to provide funds to make payment to a Beneficial Owner upon such Beneficial Owner&#146;s tender of its shares of RP in a Remarketing. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Applicable Dividend Rate During a Non-Payment Period</FONT></U><FONT face="serif">.  So long as a Non-Payment Period shall continue, paragraphs 1, 2, 3, 4, 5, and 6 of
this Part II shall not be applicable to any of the shares of RP and the shares of RP shall not be subject to Tender and Dividend Reset. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Transfers</FONT></U><FONT face="serif">. In the case of any transfer of any shares of RP other than pursuant to a Remarketing, the transferor shall ensure that an Agent
Member advises the Remarketing Agent of such transfer.  The Agent Member shall be authorized and instructed to disclose to the Remarketing Agent and/or the Paying Agent such information with respect to the transferee as the Remarketing Agent or
Paying Agent shall request. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Miscellaneous</FONT></U><FONT face="serif">. To the extent permitted by applicable law, the Board of Directors of the Corporation may interpret or adjust the provisions
hereof to resolve any inconsistency or ambiguity, remedy any formal defect or make any other change or modification which does not adversely affect the rights of Holders or Beneficial Owners of shares of RP and if such inconsistency or ambiguity
reflects an incorrect provision hereof then the Board of Directors</FONT></P>
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<FONT face="serif">may authorize the filing of a Certificate of Amendment or a Certificate of Correction, as the case may be. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">10.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Securities Depository; Stock Certificates</FONT></U><FONT face="serif">. (a) If there is a Securities Depository, one certificate for all of the shares of RP shall be
issued to the Securities Depository and registered in the name of the Securities Depository or its nominee. Such certificate shall bear a legend to the effect that such certificate is issued subject to the provisions contained in this Article
Fourteenth. Unless the Corporation shall have elected, during a Non-Payment Period, to waive this requirement, the Corporation will also issue stop-transfer instructions to the Paying Agent for the shares of RP.  Except as provided in paragraph (b)
below, the Securities Depository or its nominee will be the Holder, and no Beneficial Owner shall receive certificates representing its ownership interest in such shares. </FONT></P>
<P align=justify>
  <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;<FONT face="serif"></FONT></FONT><FONT face="serif"></FONT><FONT face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; If the Applicable Dividend Rate applicable to all shares of RP shall be the Non-Payment Period Rate or there is no Securities Depository, the Corporation may at its option issue one or more new
certificates with respect to such shares (without the legend referred to in paragraph 10(a) of this Part II) registered in the names of the Beneficial Owners or their nominees and rescind the stop-transfer instruction referred to in paragraph 10(a)
of this Part II with respect to such shares. </FONT></P>
<P align=justify>&nbsp;</P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FIFTEENTH. </FONT><I><FONT face="serif">Auction Preferred Stock, Series M, Series W and Series F. </FONT></I><FONT face="serif">The number of shares, preferences, conversion and other rights, voting
powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption, of the Auction Preferred Stock, Series M; Auction Preferred Stock, Series W; and Auction Preferred Stock, Series F are as set forth in this
Article Fifteenth:</FONT><I><FONT face="serif"> </FONT></I></P>
<center>
  <FONT face="serif">DESIGNATION</FONT><BR>
</center>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">AUCTION PREFERRED STOCK, SERIES M:  A series of 4,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;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 M.&#148; Each share of Auction Preferred Stock, Series M 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 this Article Fifteenth. The Auction Preferred Stock, Series M shall constitute a separate series of preferred stock of the Fund, and each share of Auction Preferred Stock, Series M shall be identical. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">AUCTION PREFERRED STOCK, SERIES W:  A series of 4,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;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 W.&#148; Each share of Auction Preferred Stock, Series W 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 this Article Fifteenth. The Auction Preferred Stock, Series W shall constitute a separate series of preferred stock of the Fund, and each share of Auction Preferred Stock, Series W shall be identical. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">AUCTION PREFERRED STOCK, SERIES F:  A series of 4,000 shares of preferred stock, par value &#36;.001 per share, liquidation preference &#36;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 F.&#148; Each share of Auction Preferred Stock, Series F 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 this Article Fifteenth. The Auction Preferred Stock, Series F shall</FONT></P>
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<FONT face="serif">constitute a separate series of preferred stock of the Fund, and each share of Auction Preferred Stock, Series F shall be identical. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">The Board of Directors of the Fund may, in the future, by resolution duly adopted, without shareholder approval (except as otherwise provided by this Article Fifteenth 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=justify>&nbsp;</P>
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  <p><BR>
      </p>
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<FONT face="serif">-37-</FONT></P>

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<B><FONT size=2 face="serif">TABLE OF CONTENTS</FONT></B><FONT size=2 face="serif"> </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width="4%" align=left>&nbsp;

	</TD>
	<TD width="88%" align=left>&nbsp;

	</TD>
	<TD width="2%">&nbsp;
	</TD>
	<TD width="6%" align=right>
<B><FONT size=2 face="serif">Page</FONT></B>&nbsp;
	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD colspan=2 align=left>
<FONT face="serif">DEFINITIONS</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">39</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
      <div align="left"><FONT face="serif">PART I.</FONT>&nbsp;
	    </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">52</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Ranking</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">52</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">2.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Dividends</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">52</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">3.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Designation of Special Dividend Periods</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">57</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">4.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Voting Rights</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">59</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">5.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Investment Company Act Preferred Stock Asset Coverage</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">62</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">6.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Preferred Stock Basic Maintenance Coverage</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">62</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">7.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Restrictions on Dividends and Other Distributions</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">64</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">8.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Redemption</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">65</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">9.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Liquidation Rights</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">69</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">10.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Certain Rating Agency Requirements and Restrictions</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">70</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">11.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Miscellaneous</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">71</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=center>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=center>
      <div align="left"><FONT face="serif">PART II.</FONT>&nbsp;
	    </div></TD>
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">71</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">1.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Orders</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">71</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">2.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Submission of Orders by Broker-Dealers to Auction Agent</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">73</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">3.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Determination of Sufficient Clearing Bids, Winning Bids Rate and</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT face="serif">Applicable Dividend Rate</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">76</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">4.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Acceptance and Rejection of Submitted Bids and Submitted Sell Orders</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT face="serif">and Allocation of Shares</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">77</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">5.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Auction Agent</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">80</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">6.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Transfer of APS</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">81</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">7.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Global Certificate</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">81</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD align=right>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
 &nbsp; &nbsp; &nbsp; &nbsp; &nbsp;<FONT face="serif">8.</FONT>&nbsp;
	</TD>
	<TD align=left>
<FONT face="serif">Force Majeure</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=right>
<FONT face="serif">81</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<P align=center>
<FONT face="serif">-38- </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<center>
  <B><FONT face="serif">DEFINITIONS</FONT></B>
</center>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">As used in Parts I and II of this Article Fifteenth, 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(1)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;ACCOUNTANT&#146;S CONFIRMATION&#148; shall have the meaning specified in paragraph (c) of Section 6 of Part I of this
Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(2)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(3)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(4)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;ALL HOLD RATE&#148; means 80% of the Reference Rate. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(5)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(6)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;APPLICABLE DIVIDEND RATE&#148; shall have the meaning specified in subparagraph (d)(i)(D) of Section 2 of Part I of
this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(7)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 width="35%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=3 align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">CREDIT
    RATINGS</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">MOODY&#146;S</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">S&amp;P</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
	</TD>
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">PERCENTAGE</font></b>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Aaa</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif">125%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Aa3 to Aa1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">AA- to AA+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif">150%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">A3 to A1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">A- to A+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif">200%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Baa3 to Baa1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">BBB- to BBB+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif">250%</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Ba1 and lower</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">BB+ and lower</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap>
<FONT face="serif">300%</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 </FONT></P>
<P align=center>
<FONT size=1 face="serif"> </FONT><FONT face="serif">-39-  </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
<FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(8)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;APPLICABLE SPREAD&#148; means: </FONT></P>
<TABLE width="35%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD colspan=3 align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">CREDIT
    RATINGS</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>&nbsp;

	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
	    </center></TD>
</TR>
<TR valign="bottom">
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">MOODY&#146;S</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">S&amp;P</font></b>&nbsp; </div></TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">SPREAD</font></b>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Aaa</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">AAA</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap> <center>
	  <FONT face="serif">125 bps</FONT>&nbsp;
    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Aa3 to Aa1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">AA- to AA+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap> <center>
	  <FONT face="serif">150 bps</FONT>&nbsp;
    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">A3 to A1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">A- to A+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap> <center>
	  <FONT face="serif">200 bps</FONT>&nbsp;
    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Baa3 to Baa1</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">BBB- to BBB+</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
      <center>
        <FONT face="serif">250 bps</FONT>&nbsp;
	    </center></TD>
  </TR>
<TR valign="bottom">
	<TD align=left nowrap>
<FONT face="serif">Ba1 and lower</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
<FONT face="serif">BB+ and lower</FONT>&nbsp;
	</TD>
	<TD nowrap>&nbsp;
	</TD>
	<TD align=left nowrap>
      <center>
        <FONT face="serif">300 bps</FONT>&nbsp;
	    </center></TD>
  </TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(9)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(10)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;APS&#148; means, collectively, the Auction Preferred Stock, Series M; the Auction Preferred Stock, Series W; and the
Auction Preferred Stock, Series F, together with any additional series of Auction Preferred Stock that may be classified and designated by the Board of Directors as provided in this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(11)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;AUCTION&#148; means each periodic implementation of the Auction Procedures. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(12)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(13)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(14)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=center>
<FONT size=1 face="serif"> </FONT><FONT face="serif">-40-  </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(15)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;AUCTION PROCEDURES&#148; means the procedures for conducting Auctions set forth in Part II of this Article Fifteenth.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(16)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;AVAILABLE APS&#148; shall have the meaning specified in subparagraph (a)(i) of Section 3 of Part II of this Article
Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(17)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(18)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;BID&#148; and &#147;BIDS&#148; shall have the respective meanings specified in paragraph (a) of Section 1 of Part II
of this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(19)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;BIDDER&#148; and &#147;BIDDERS&#148; shall have the respective meanings specified in paragraph (a) of Section 1 of
Part II of this Article Fifteenth; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT face="serif"> 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(20)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;BOARD OF DIRECTORS&#148; means the Board of Directors of the Fund or any duly authorized committee thereof. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(21)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth, 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 UBS Securities
LLC, which consent shall not be unreasonably withheld or delayed) and has entered into a Broker-Dealer Agreement that remains effective. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(22)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(23)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(24)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;CODE&#148; means the Internal Revenue Code of 1986, as amended. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(25)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;COMMON STOCK&#148; means the common stock, par value &#36;.001 per share, of the Fund. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(26)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(27)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=center>
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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(28)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(29)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(30)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(31)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(32)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(33)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(34)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth; </FONT><I><FONT face="serif">provided,
however, </FONT></I><FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(35)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;FITCH&#148; means Fitch, Inc. and its successors at law. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(36)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;FUND&#148; means DNP Select Income Fund Inc., a Maryland corporation and the issuer of the APS. </FONT></P>
<P align=center>
<FONT size=1 face="serif"> </FONT><FONT face="serif">-42-  </FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(37)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(38)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(39)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(40)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(41)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(42)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(43)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(44)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;INVESTMENT COMPANY ACT&#148; means the Investment Company Act of 1940, as amended from time to time. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(45)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth) as of the last Business Day of each month, means the last Business Day of the following month. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(46)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(47)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;LATE CHARGE&#148; shall have the meaning specified in subparagraph (d)(i)(B) of Section 2 of Part I of this Article
Fifteenth. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(48)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;LIBOR&#148; means the London Interbank Offered Rate. </FONT></P>
<P align="center">
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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(49)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;LIBOR DEALERS&#148; means UBS Securities LLC 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(50)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 single transaction in such market at such time by reference to the principal London offices of leading banks in the London interbank market;
</FONT><I><FONT face="serif">provided</FONT></I><FONT face="serif">, </FONT><I><FONT face="serif">however</FONT></I><FONT face="serif">, 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; </FONT><I><FONT
face="serif">provided</FONT></I><FONT face="serif">, </FONT><I><FONT face="serif">further</FONT></I><FONT face="serif">, 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(51)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;LIQUIDATION PREFERENCE,&#148; with respect to a given number of shares of a series of APS, means &#36;25,000 times
that number. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(52)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;LONDON BUSINESS DAY&#148; means any day on which commercial banks are generally open for business in London.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(53)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(54)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD colspan=3 align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">CREDIT
    RATINGS</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">PERCENTAGE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">OF THE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
            </center></TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">MOODY&#146;S</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">S&amp;P</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">REFERENCE
    RATE</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">SPREAD</font></b>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT face="serif">Aaa</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT face="serif">AAA</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">125%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap> <center>
          <FONT face="serif">125 bps</FONT>&nbsp;
    </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT face="serif">Aa3 to Aa1</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT face="serif">AA- to AA+</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">150%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <FONT face="serif">150 bps</FONT>&nbsp;
            </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT face="serif">A3 to A1</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT face="serif">A- to A+</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">200%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <FONT face="serif">200 bps</FONT>&nbsp;
            </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT face="serif">Baa3 to Baa1</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT face="serif">BBB- to BBB+</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">250%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <FONT face="serif">250 bps</FONT>&nbsp;
            </center></TD>
  </TR>
<TR valign="bottom">
        <TD align=left nowrap>
<FONT face="serif">Ba1 and lower</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
<FONT face="serif">BB+ and lower</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">300%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>
      <center>
        <FONT face="serif">300 bps</FONT>&nbsp;
            </center></TD>
  </TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 width="60%" border=0 align="center" cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">MAXIMUM</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">DIVIDEND RATE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">USING THE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">MAXIMUM</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">DIVIDEND RATE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=left nowrap>&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">PERCENTAGE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">USING THE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">METHOD USED</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left nowrap>&nbsp;

        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">OF THE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">APPLICABLE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">TO DETERMINE</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<B><FONT size=2 face="serif">REFERENCE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">REFERENCE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">SPREAD OVER THE</FONT></B>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<B><FONT size=2 face="serif">THE MAXIMUM</FONT></B>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">RATE</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">RATE</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">REFERENCE
    RATE</font></b>&nbsp; </div></TD>
        <TD nowrap>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
        </TD>
        <TD align=center nowrap><div style="border-bottom:1px solid #000000"> <b><font size=2 face="serif">DIVIDEND
    RATE</font></b>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">1%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">1.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">2.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">2%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">2.50%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">3.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">3%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">3.75%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">4.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">4%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">5.00%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">5.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Spread</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">5%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">6.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">6.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Either</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=center nowrap>
<FONT face="serif">6%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">7.50%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">7.25%</FONT>&nbsp;
        </TD>
        <TD nowrap>&nbsp;
        </TD>
        <TD align=center nowrap>
<FONT face="serif">Percentage</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 align="center">
<FONT face="serif">-45-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(55)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;MOODY&#146;S&#148; means Moody&#146;s Investors Service, Inc., a Delaware corporation, and its successors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(56)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT
face="serif">provided, however, </FONT></I><FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(57)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(58)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(59)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT face="serif"> 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(60)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(61)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(62)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(63)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align="center">
<FONT face="serif">-46-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(64)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;ORDER&#148; and &#147;ORDERS&#148; shall have the respective meanings specified in paragraph (a) of Section 1 of Part
II of this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(65)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(66)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(67)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(68)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(69)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(70)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;PREFERRED DIRECTOR&#148; means the Initial Preferred Directors and the Subsequent Preferred Directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(71)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;PREFERRED STOCK&#148; means the preferred stock, par value &#36;.001 per share, of the Fund. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(72)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(73)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth) as of a given Valuation Date, means the eighth Business Day following such Valuation Date. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(74)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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</FONT></P>
<P align="center">
<FONT face="serif">-47-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">
<FONT face="serif">Discounted Value thereof (seriatim and in aggregate) and each Preferred Stock Basic Maintenance Amount. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(75)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(76)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;REDEMPTION PRICE&#148; means the applicable redemption price specified in paragraph (a) or (b) of Section 8 of Part I
of this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(77)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;REFERENCE BANKS&#148; means four major banks in the London interbank market selected by UBS Securities LLC or its
affiliates or successors or such other party as the Fund may from time to tome appoint. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(78)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(79)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(80)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided,
however, </FONT></I><FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(81)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(82)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(83)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT face="serif"> 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 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>
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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(84)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(85)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(86)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;SECURITIES ACT&#148; means the Securities Act of 1933, as amended from time to time. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(87)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(88)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(89)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(90)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(91)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;SPECIAL REDEMPTION PROVISIONS&#148; shall have the meaning specified in subparagraph (a)(i) of Section 8 of Part I of
this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(92)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(93)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(94)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(95)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(96)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(97)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 this Article Fifteenth. </FONT></P>
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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(98)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(99)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">that if any Subsequent Dividend Period is also a Special Dividend Period, such 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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(100)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(101)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;SUBSTITUTE LIBOR DEALER&#148; means any dealer selected by the Fund; </FONT><I><FONT face="serif">provided,
however,</FONT></I><FONT face="serif"> that none of such entities shall be a LIBOR Dealer. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(102)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(103)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(104)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(105)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(106)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT
face="serif"> that any of the provisions of said</FONT></P>
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<FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(107)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(108)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(109)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">that none of such entities shall be a U.S. Government Securities
Dealer. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(110)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;SUFFICIENT CLEARING BIDS&#148; shall have the meaning specified in paragraph (a) of Section 3 of Part II of this
Article Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(111)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(112)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(113)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 </FONT></P>
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<FONT face="serif">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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(114)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#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 align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(115)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;VOTING PERIOD&#148; shall have the meaning specified in paragraph (b) of Section 4 of Part I of this Article
Fifteenth. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(116)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">&#147;WINNING BID RATE&#148; shall have the meaning specified in paragraph (a) of Section 3 of Part II of this Article
Fifteenth. </FONT></P>
<center>
  <B><FONT face="serif">PART I.</FONT></B>
</center>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD colspan=2>
<B><FONT face="serif">Ranking</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<B><FONT face="serif">2.</FONT></B></TD>
        <TD colspan=2>
<B><FONT face="serif">Dividends</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><I> <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Cumulative
  Cash Dividends</FONT></I><FONT face="serif">.
  The Holders of shares of a series of APS</FONT> 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></div></TD>
</TR>
</TABLE>
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<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Dividends
            Cumulative From Date of Original Issue</FONT></I><FONT face="serif">.
            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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Dividend
            Payment Dates and Adjustment Thereof</FONT></I><FONT face="serif">.
            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; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT
face="serif"> that: </FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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; </FONT><I><FONT face="serif">provided,
          however,</FONT></I><FONT face="serif"> 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 </FONT><I><FONT face="serif">provided, further,</FONT></I><FONT face="serif"> 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>
</table>
<P align="justify">
<FONT size=2 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;(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Dividend Rates and Calculation of Dividends</FONT></I><FONT face="serif">.</FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;</FONT><FONT face="serif">&nbsp;</FONT><FONT size=2 face="serif">(i)</FONT><FONT size=2 face="sans-serif">&nbsp; </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividend
          Rates</FONT></I><FONT face="serif">. 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; </FONT><I><FONT
face="serif">provided, however, </FONT></I><FONT face="serif">that if: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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 </FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-53-  </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify"><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(C)</FONT><FONT size=2 face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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</FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-54-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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 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</FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-55-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="11%">&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;</td>
    <td width="89%"><FONT face="serif">Subsequent Dividend Period thereof being herein referred
    to as the &#147;Applicable Dividend Rate&#148; for shares of such series). </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Calculation
            of Dividends</FONT></I><FONT face="serif">. 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 &#36;25,000. </FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Curing
            a Failure to Deposit</FONT></I><FONT face="serif">. 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 this Article Fifteenth; </FONT><I><FONT face="serif">provided,
            however,</FONT></I><FONT face="serif"> 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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Dividend
            Payments by Fund to Auction Agent</FONT></I><FONT face="serif">.
            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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Auction
            Agent as Trustee of Dividend Payments by Fund</FONT></I><FONT face="serif">.
            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 face="serif">-56-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan=2><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)</FONT><FONT size=2 face="sans-serif">&nbsp; </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends
          Credited Against Earliest Accumulated but Unpaid Dividends</FONT></I><FONT face="serif">.
          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></TD>
</TR>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD colspan=2>
<B><FONT face="serif">Designation of Special Dividend Periods</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Length
  of and Preconditions for Special Dividend Period</FONT></I><FONT face="serif">.
  The Fund, at its</FONT> 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;); </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Notice
  of Proposed Special Dividend Period</FONT></I><FONT face="serif">. If the Fund
  proposes to</FONT> 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</FONT></div></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">-57-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"><FONT face="serif">the Special Dividend Period designated,
          or (y) its determination not to exercise such option.</FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Notice
            of Special Dividend Period</FONT></I><FONT face="serif">. 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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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 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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>
      <div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Failure
            to Deliver Notice of Special Dividend Period</FONT></I><FONT face="serif">.
            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</FONT></div></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-58-</FONT></P>

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<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
<TD>&nbsp;</TD> <TD>
  <div align="justify"><FONT face="serif">the Auction Agent with respect to such
      Special Dividend Period to the effect set forth in subparagraph (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></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
        <TD nowrap valign=top>
<B><FONT face="serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD>
<B><FONT face="serif">Voting Rights</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">One
  Quarter of a Vote Per Share of APS</FONT></I><FONT face="serif">.
  Except as otherwise provided in</FONT> 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; </FONT><I><FONT face="serif">provided,
  however, </FONT></I><FONT
face="serif">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></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>
<TD nowrap valign=top>
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<I><FONT size="3" face="serif">Voting
For Additional Directors</FONT></I><FONT size="3" face="serif">.</FONT> </FONT></TD>
        </TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>
      <div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Voting
            Period</FONT></I><FONT face="serif">. 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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><div align="justify"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A)</FONT><FONT size=2 face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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; </FONT></div></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-59-  </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify"><FONT face="serif">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>
      <P align="justify"> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
</table>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Notice
            of Special Meeting</FONT></I><FONT face="serif">. 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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Terms
            of Office of Existing Directors</FONT></I><FONT face="serif">. 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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iv)</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Terms
            of Office of Certain Directors to Terminate Upon Termination of Voting
            Period</FONT></I><FONT face="serif">. 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</FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-60-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P><FONT face="serif">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>
      <P> <FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Holders
    of APS to Vote on Certain Other Matters</FONT></I><FONT face="serif">. </FONT></P>
      <P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Capitalization
            Matters</FONT></I><FONT face="serif">. 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 this Article Fifteenth, 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; </FONT><I><FONT face="serif">provided,
            however, </FONT></I><FONT face="serif">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 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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Investment
            Company Act Matters</FONT></I><FONT face="serif">. 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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Separate
            Class Voting. </FONT></I><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(iv)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Voting
            by Series. </FONT></I><FONT face="serif">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 </FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-61-  </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Voting
            Rights Set Forth Herein Are Sole Voting Rights</FONT></I><FONT face="serif">.
            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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">No
            Preemptive Rights Or Cumulative Voting</FONT></I><FONT face="serif">.
            The Holders of shares of any series of APS shall have no preemptive
            rights or rights to cumulative voting.</FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Voting
            For Directors Sole Remedy For Fund&#146;s Failure To Pay Dividends</FONT></I><FONT face="serif">.
            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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Holders
            Entitled To Vote</FONT></I><FONT face="serif">. For purposes of determining
            any rights of the Holders to vote on any matter, whether such right
            is created by this Article Fifteenth, 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>
</table>
<P align="justify">
<B><FONT face="serif">5.</FONT></B><B><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="serif">Investment Company Act Preferred Stock Asset Coverage</FONT></B><FONT face="serif">.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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><B><FONT
face="serif"> </FONT></B></P>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD>&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD>
<B><FONT face="serif">Preferred Stock Basic Maintenance Coverage</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD>
  <div align="justify"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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</FONT></div></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">-62-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P><FONT face="serif">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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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 this Article Fifteenth 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 this Article
          Fifteenth 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</FONT></P></td>
  </tr>
</table>
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<FONT face="serif">-63-</FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">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 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></div></td>
  </tr>
</table>
<P align="justify">
<B><FONT face="serif">7.</FONT></B><B><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT></B><B><FONT face="serif">Restrictions on Dividends and Other Distributions</FONT></B><FONT face="serif">.</FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(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</FONT><B><FONT face="serif"> </FONT></B><FONT face="serif">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>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(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 </FONT></P>
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<FONT face="serif">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>
<P align="justify">
<B><FONT face="serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">Redemption</FONT></B><FONT face="serif">. </FONT></P>
<P align="left">
<FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT>(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Optional Redemption</FONT></I><FONT face="serif">. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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 &#36;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><I><FONT face="serif">provided, however,</FONT></I><FONT face="serif"> 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 subparagraph (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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(iv)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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 </FONT></P></td>
  </tr>
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<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"><FONT face="serif">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 &#36;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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif"></FONT><FONT face="serif">(v)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td> <div align="justify"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Mandatory
            Redemption</FONT></I><FONT face="serif">. The Fund shall redeem,
            at a redemption price equal to &#36;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 (</FONT><I><FONT face="serif">provided,
            however, </FONT></I><FONT face="serif">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</FONT></div></td>
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  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"><FONT face="serif">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 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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Notice
            of Redemption</FONT></I><FONT face="serif">. 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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">No
            Redemption Under Certain Circumstances</FONT></I><FONT face="serif">.
            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; </FONT><I><FONT face="serif">provided, however,</FONT></I><FONT face="serif"> 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</FONT></P></td>
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  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"><FONT face="serif">lawful purchase or exchange offer
          made on the same terms to, and accepted by, Holders of all outstanding
          shares of such series.</FONT></P>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Absence
            of Funds Available for Redemption</FONT></I><FONT face="serif">.
            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; </FONT><I><FONT face="serif">provided,
            however,</FONT></I><FONT face="serif"> 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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(f)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Auction
            Agent as Director of Redemption Payments by Fund</FONT></I><FONT face="serif">.
            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>
      <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(g)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Shares
            for Which Notice of Redemption Has Been Given Are no Longer Outstanding</FONT></I><FONT face="serif">.
            Provided a Notice of Redemption has been mailed pursuant to paragraph
            (c) of this Section 8, upon the deposit with the 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</FONT></P></td>
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<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan=2><P align="justify"><FONT face="serif">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>
    <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(h)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Compliance
          with Applicable Law</FONT></I><FONT face="serif">. 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>
    <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Only
          Whole Shares of APS May Be Redeemed</FONT></I><FONT face="serif">.
          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>
    <P align=justify> <FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(j)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Modification
          of Redemption Procedures</FONT></I><FONT face="serif">. 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 nowrap valign=top>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">9.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD colspan=2>
<B><FONT face="serif">Liquidation Rights.</FONT></B>    </TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Distributions
  Upon Liquidation</FONT></I><FONT face="serif">.
  Upon the dissolution, liquidation or</FONT> 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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Pro
          Rata Distributions</FONT></I><FONT face="serif">.
  In the event the assets of the Fund available for</FONT> 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</FONT></div></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">-69-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
  <TD nowrap valign=top>&nbsp;</TD>
  <TD colspan=2><P align="justify"><FONT face="serif">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 distributable amounts for
        which holders of all such parity shares are respectively entitled upon
        such dissolution, liquidation or winding up. </FONT></P>
    <P align=justify> <FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Rights
          of Junior Shares</FONT></I><FONT face="serif">. 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>
    <P align=justify> <FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><I><FONT face="serif">Certain
          Events Not Constituting Liquidation</FONT></I><FONT face="serif">.
          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 nowrap valign=top>&nbsp;</TD>
  <TD colspan=2>&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">10.&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD colspan=2>
<B><FONT face="serif">Certain Rating Agency Requirements and Restrictions</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT> <FONT face="serif">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></div></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">-70-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<TABLE border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">11.&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD>
<B><FONT face="serif">Miscellaneous</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD>
<TD nowrap valign=top>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; <I><FONT size="3" face="serif">No Fractional Shares</FONT></I><FONT size="3" face="serif">.
  No fractional shares of APS shall be issued.</FONT></FONT></div></TD>
        </TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>
  <div align="justify"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Status
        of Shares of APS Redeemed, Exchanged or Otherwise Acquired by the Fund</FONT></I><FONT face="serif">.
  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></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>
  <div align="justify"><FONT face="serif"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(c)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Board
  May Resolve Ambiguities</FONT></I><FONT face="serif">.
  To the extent permitted by applicable</FONT> law, the Board of Directors may
  interpret or adjust the provisions of this Article Fifteenth to resolve any
  inconsistency or ambiguity or to remedy any formal defect, and may amend this
  Article Fifteenth with respect to any series of APS prior to the issuance of
  shares of such series.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>
  <div align="justify"><FONT face="serif"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(d)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Headings
  Not Determinative</FONT></I><FONT face="serif">.
  The headings contained in this Article</FONT> Fifteenth are for convenience
  of reference only and shall not affect the meaning or interpretation of this
  Article Fifteenth.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD>
  <div align="justify"><FONT face="serif"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(e)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><I> <FONT face="serif">Notices</FONT></I><FONT face="serif">.
  All notices or communications, unless otherwise specified in the</FONT> Bylaws
  of the Fund or this Article Fifteenth, shall be sufficiently given if in writing
  and delivered in person or mailed by first-class mail, postage prepaid.</FONT></div></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<center>
  <B><FONT face="serif">PART II.</FONT></B>
</center>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR>
  <TD width="3%" valign=top nowrap>&nbsp;</TD>
  <TD width="97%">&nbsp;</TD>
</TR>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD>
<B><FONT face="serif">Orders</FONT></B><FONT face="serif">.</FONT></TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR><TR>
<TD>&nbsp;</TD> <TD>
<FONT face="serif"><FONT face="serif"><FONT size=2 face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT></FONT><FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><I><FONT face="serif">Prior to the Submission Deadline on each Auction Date for shares of a series of APS:</FONT></I>        </TD>
</TR>
<TR><TD colspan=2>&nbsp;</TD></TR></TABLE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="95%"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">each
        Beneficial Owner of shares of such series may submit to its Broker-Dealer
    by telephone or otherwise information as to: </FONT></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">the
          number of Outstanding shares, if any, of such series held by such Beneficial
    Owner which such Beneficial Owner offers to sell </FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-71-  </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>
      <div align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
</table>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b)</FONT><FONT face="sans-serif">&nbsp; </FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;      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></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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</FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-72-</FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="9%">&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;</td>
    <td width="91%"><div align="justify"><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td> <div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">the
          number of Outstanding shares of such series specified in such Sell
          Order; or </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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; </FONT><I><FONT face="serif">provided,
          however,</FONT></I><FONT face="serif"> 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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td> <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT>(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="sans-serif"> </FONT><FONT face="serif">&nbsp;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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="4%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="96%">
      <p>&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">No
          Order for any number of shares of APS other than whole shares shall be
    valid.</FONT></p>
    <p align="justify">&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
</table>
<P align="center">
<FONT face="serif">-73-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">
  <B><FONT face="serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">Submission
of Orders by Broker-Dealers to Auction Agent</FONT></B><FONT face="serif">. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>
      <div align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="5%">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td width="95%"><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">the
          name of the Bidder placing such Order (which shall be the Broker-Dealer
          unless otherwise permitted by the Fund); </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">the
          aggregate number of shares of such series that are the subject of such
          Order; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">to
          the extent that such Bidder is an Existing Holder of shares of such
    series: </FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="8%">&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;</td>
    <td width="92%"><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">the
          number of shares, if any, of such series subject to any Hold Order
          of such Existing Holder; </FONT></P>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(b)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c)</FONT><FONT face="sans-serif"> </FONT><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">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>
</table>
<P align="center">
<FONT face="serif">-74-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td>
      <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT>(d)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;        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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(D)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td> <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-75-</FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
</table>
<P align="justify">
<B><FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">Determination of Sufficient Clearing Bids, Winning Bids Rate and Applicable Dividend Rate</FONT></B><FONT face="serif">. </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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 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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> <FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">from
    the Submitted Orders for shares of such series whether: </FONT></P></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(C)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td> <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
</table>
<P align="center">
<FONT size=1 face="serif"> </FONT><FONT face="serif">-76-  </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&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;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(A)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">(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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT size=2 face="serif"></FONT><FONT size=2 face="serif"></FONT><FONT size=2 face="serif">(B)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT size=2 face="sans-serif"> </FONT><FONT face="serif">(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>
</table>
<P align="justify">
<FONT face="serif">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>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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="justify">
<B><FONT face="serif">4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">Acceptance and Rejection of Submitted Bids and Submitted Sell Orders and Allocation of Shares</FONT></B><FONT face="serif">. </FONT></P>
<P align="justify">
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&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 width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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</FONT></div></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-77-</FONT></P>

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<P>&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">order of priority and all other Submitted Bids with
    respect to shares of such series shall be rejected: </FONT></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT face="sans-serif"> </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(iv)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(v)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
</table>
<P align="center">
<FONT face="serif">-78-</FONT></P>

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<P align="justify">&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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></div></td>
  </tr>
  <tr>
    <td>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif"></FONT><FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif"></FONT><FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif"></FONT><FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align="justify">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(c)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(d)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align="justify"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(e)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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</FONT></P></td>
  </tr>
</table>
<P align="center">
<FONT face="serif">-79-</FONT></P>

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<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(f)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(g)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>&nbsp;</td>
    <td>&nbsp;</td>
  </tr>
</table>
<B><FONT face="serif">5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">Auction
Agent</FONT></B><FONT face="serif">.</FONT><BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 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,</FONT></P>
<P align="center">
<FONT face="serif">-80-</FONT></P>

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<P align="justify">
<FONT face="serif">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>
<B><FONT face="serif">6.</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Transfer of APS</FONT></B><FONT face="serif">.</FONT><BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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; </FONT><I><FONT face="serif">provided, however, </FONT></I><FONT face="serif">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>
<B><FONT face="serif">7.</FONT></B><B><FONT face="sans-serif"> </FONT></B><B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Global Certificate</FONT></B><FONT face="serif">.</FONT><BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">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 border=0 cellspacing=0 cellpadding=0>
<TR>
        <TD nowrap valign=top>
<B><FONT face="serif">8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B></TD>
        <TD colspan=2>
<FONT face="serif">Force Majeure.</FONT></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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, </FONT><I><FONT face="serif">provided,
  however, </FONT></I><FONT face="serif">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></div></TD>
</TR>
<TR><TD colspan=3>&nbsp;</TD></TR>
<TR>
<TD>&nbsp;</TD>
<TD colspan=2>
  <div align="justify"><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; 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></div></TD>
</TR>
</TABLE>
<P align="center">
<FONT face="serif">-81-</FONT></P>

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<P align=justify>&nbsp;</P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</td>
    <td><P align=justify>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">(i)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(ii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
      <P align=justify> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif"></FONT><FONT face="serif">(iii)</FONT><FONT face="sans-serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><FONT face="serif">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>
</table>
<P align=justify>&nbsp;</P>
<P align=justify>&nbsp;</P>
<P align="center">
<I><FONT face="serif">[Remainder of this page intentionally left blank]</FONT></I></P>
<P align="center">&nbsp;</P>
<P align="center">&nbsp;</P>
<P align="center">
<FONT face="serif">-82-</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECOND: </FONT></B><FONT face="serif">The amendment to and restatement of the charter of the Corporation as hereinabove set forth have been duly advised by the board of directors of the Corporation
and approved by the stockholders of the Corporation as required by law. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">THIRD: </FONT></B><FONT face="serif">The foregoing amendment to and restatement of the charter of the Corporation do not increase the authorized stock of the Corporation. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">FOURTH: </FONT></B><FONT face="serif">The current address of the principal office of the Corporation is as set forth in Article Third of the foregoing amendment to and restatement of the charter of
the Corporation.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">FIFTH: </FONT></B><FONT face="serif">The name and address of the Corporation&#146;s current resident agent are as set forth in Article Third of the foregoing amendment to and restatement of the
charter of the Corporation. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SIXTH: </FONT></B><FONT face="serif">The number of directors of the Corporation is currently eight and the names of those directors currently in office are as follows: </FONT></P>
<table width="100%" border="0" cellspacing="0" cellpadding="0">
  <tr>
    <td width="7%">&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;</td>
    <td width="93%"><FONT face="serif">Stewart E. Conner </FONT><BR>
      <FONT face="serif">Connie K. Duckworth </FONT><BR>
      <FONT face="serif">Robert J. Genetski </FONT><BR>
      <FONT face="serif">Francis E. Jeffries </FONT><BR>
      <FONT face="serif">Nancy Lampton </FONT><BR>
      <FONT face="serif">Christian H. Poindexter</FONT><BR>
      <FONT face="serif">Carl F. Pollard </FONT><BR>
      <FONT face="serif">David J. Vitale </FONT></td>
  </tr>
</table>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SEVENTH: </FONT></B><FONT face="serif">The foregoing amendment to the Charter of the Corporation shall become effective upon acceptance for record by the State Department of Assessments and
Taxation of Maryland. </FONT></P>
<P align="center">
<FONT face="serif">-83-</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, DNP Select Income Fund Inc. has caused these presents to be signed in its name and on its behalf by its President and witnessed by its Secretary on
May 11, 2006. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
        <TD width=36% align=left>
<FONT face="serif">WITNESS:</FONT>&nbsp;
        </TD>
        <TD width=25%>&nbsp;</TD>
        <TD colspan="2">
<FONT face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp;
        </TD>
  </TR>
<TR>
        <TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR>
        <TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

        </TD>
</TR>
<TR valign="bottom">
        <TD align=left><div style="border-bottom:1px solid #000000"> &nbsp;<font face="serif">&nbsp;/s/
    T. Brooks Beittel</font>&nbsp; </div></TD>
        <TD>&nbsp;</TD>
        <TD width=3% nowrap><FONT face="serif">By:</FONT>&nbsp;
        </TD>
        <TD width=36% align=left><div style="border-bottom:1px solid #000000"> <font face="serif"> /s/
    Nathan I. Partain</font></div></TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">T. Brooks Beittel</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
</TR>
<TR valign="bottom">
        <TD align=left>
<FONT face="serif">Secretary</FONT>&nbsp;
        </TD>
        <TD>&nbsp;</TD>
        <TD>&nbsp;
        </TD>
        <TD align=left> <FONT face="serif">President</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">THE UNDERSIGNED, President of DNP Select Income Fund Inc., who executed on behalf of the Corporation the foregoing Articles of Amendment and Restatement of which this certificate is made a part,
hereby acknowledges in the name and on behalf of said Corporation the foregoing Articles of Amendment and Restatement to be the corporate act of said Corporation and hereby certifies that to the best of his knowledge, information, and belief the
matters and facts set forth therein with respect to the authorization and approval thereof are true in all material respects under the penalties of perjury.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=61% align=left>&nbsp;</TD>
        <TD width=39% align=left><div style="border-bottom:1px solid #000000"> <font face="serif">/s/
    Nathan I. Partain</font>&nbsp; </div></TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
        <TD align=left>
<FONT face="serif">Nathan I. Partain</FONT>&nbsp;
        </TD>
</TR>
</TABLE>
<BR>

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<DOCUMENT>
<TYPE>EX-99.2.A.2
<SEQUENCE>4
<FILENAME>c42214_ex99-2a2.htm
<TEXT>

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<P align="right">
<B><FONT face="serif">Exhibit a.2 </FONT></B></P>
<P align="center">
<B><FONT size=4 face="serif">DNP SELECT INCOME FUND INC. </FONT></B></P>
<P align="center">
<B><FONT size=4 face="serif">ARTICLES SUPPLEMENTARY</FONT></B><FONT face="serif"> </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;DNP SELECT INCOME FUND INC., a Maryland corporation, having its principal office in Baltimore City, Maryland (hereinafter called the &#147;</FONT><U><FONT face="serif">Corporation</FONT></U><FONT
face="serif">&#148;), hereby certifies to the State Department of Assessments and Taxation of Maryland that: </FONT></P>
<P>
<B>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">FIRST: </FONT></B><FONT face="serif">Pursuant to Section 3-802(a)(2) of the Maryland General Corporation Law (&#147;<U>MGCL</U>&#148;),
the Corporation elects to be subject to Section 3-804(c) of the MGCL. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECOND</FONT></B><FONT face="serif">: The foregoing election was made by amendment to the Bylaws of the Corporation, and stockholder approval is not required for the filing of these Articles
Supplementary. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">IN WITNESS WHEREOF, DNP Select Income Fund Inc. has caused these presents to be signed in its name and on its behalf by its President and witnessed by its Secretary on May 30, 2006.</FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD>&nbsp;</TD>
  <TD colspan="2" nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
	<TD width=37% align=left>
<FONT face="serif">WITNESS:</FONT>&nbsp;
	</TD>
	<TD width=19%>&nbsp;
	</TD>
	<TD colspan="2" nowrap>
<FONT face="serif">DNP SELECT INCOME FUND INC.</FONT>&nbsp;	</TD>
  </TR>
<TR>
	<TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR>
	<TD colspan=4>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left><div style="border-bottom:1px solid #000000"> <font face="serif">/s/ T.
    Brooks Beittel</font> </div></TD>
	<TD>&nbsp;
	</TD>
	<TD width=2% nowrap><FONT face="serif">By&nbsp;&nbsp;</FONT></TD>
	<TD width=42% align=left><div style="border-bottom:1px solid #000000"><font face="serif">/s/ Nathan
    I. Partain</font></div></TD>
</TR>
<TR valign="bottom">
	<TD align=center>
<FONT face="serif"> T. Brooks Beittel, Secretary</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD colspan="2"> <center>
	    <FONT face="serif"> Nathan I. Partain, President</FONT>&nbsp;
    </center></TD>
  </TR>
</TABLE>
<BR>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">THE UNDERSIGNED, President of DNP Select Income Fund Inc., who executed on behalf of the Corporation the foregoing Articles Supplementary of which this Certificate is made a part, hereby acknowledges
in the name and on behalf of said Corporation the foregoing Articles Supplementary to be the corporate act of said Corporation and hereby certifies that the matters and facts set forth herein with respect to the authorization and approval thereof
are true in all material respects under the penalties of perjury. </FONT></P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD width=56% align=left>&nbsp;</TD>
	<TD width=44% align=left><div style="border-bottom:1px solid #000000"> <font face="serif">/s/ Nathan
    I. Partain</font></div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right>
      <center>
        <FONT face="serif">Nathan I. Partain, President</FONT>&nbsp;
      </center></TD>
</TR>
</TABLE>
<BR>

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<DOCUMENT>
<TYPE>EX-99.2.B
<SEQUENCE>5
<FILENAME>c42214_ex99-b.htm
<TEXT>

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<P align="right"><b>Exhibit b</b> </P>
<P align="center"><B><FONT size=4 face="serif">DNP SELECT INCOME FUND INC. </FONT></B></P>
<center>
  <B><FONT size=4 face="serif">BYLAWS </FONT></B><BR>
  <B><FONT face="serif">(as amended on May 11, 2006) </FONT></B>
</center>
<P align="center">
<B><FONT face="serif">ARTICLE I. </FONT></B></P>
<P align="center">
<B><FONT face="serif">STOCKHOLDERS </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.01. </FONT></B><B><I><FONT face="serif">Annual Meeting</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund shall hold an annual meeting of its stockholders to
elect directors and transact any other business within its powers, either at 9:00 a.m. on the second Tuesday of May in each year if not a legal holiday, or at such other time on such other day in the month of May as shall be set by the Board of
Directors. Except as the Charter, these Bylaws or statute provides otherwise, any business may be considered at an annual meeting without the purpose of the meeting having been specified in the notice. Failure to hold an annual meeting does not
invalidate the Fund&#146;s existence or affect any otherwise valid corporate acts.</FONT><I><FONT face="serif"> </FONT></I></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.02. </FONT></B><B><I><FONT face="serif">Special Meeting</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">At any time in the interval between annual meetings, a special
meeting of the stockholders may be called by the Chairman or the President or by a majority of the Board of Directors by vote at a meeting or in writing (addressed to the Secretary of the Fund) with or without a meeting. Subject to the procedures
set forth in Section 1.11 and this Section, special meetings of the stockholders shall be called by the Secretary at the request of stockholders only on the written request of stockholders entitled to cast at least 25 percent of all the votes
entitled to be cast at the meeting. A request for a special meeting shall state the purpose of the meeting and the matters proposed to be acted on at it. The Secretary shall inform the stockholders who make the request of the reasonably estimated
cost of preparing and mailing a notice of the meeting and, on payment of these costs to the Fund, notify each stockholder entitled to notice of the meeting. The Board of Directors shall have sole power to fix the date and time of the special
meeting. Unless requested by stockholders entitled to cast a majority of all the votes entitled to be cast at the meeting, a special meeting need not be called to consider any matter which is substantially the same as a matter voted on at any
special meeting of stockholders held during the preceding 12 months. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.03. </FONT></B><B><I><FONT face="serif">Place of Meetings</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Meetings of stockholders shall be held at such place as is
set from time to time by the Board of Directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.04. </FONT></B><B><I><FONT face="serif">Notice of Meetings; Waiver of Notice</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Not less than ten nor more than 90 days
before each stockholders&#146; meeting, the Secretary shall give notice in writing
or by electronic transmission of the meeting to each stockholder entitled to
vote at the meeting and each other stockholder entitled to notice of the meeting.
Any notice given by the Fund to a stockholder is effective if given by a single
notice, in writing or by electronic transmission, to all stockholders who share
an address if the Fund gives notice, in writing or by electronic transmission,
to the stockholder of its intent to give a single notice and the stockholder
consents </FONT></P>

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<P align=justify>
<FONT face="serif">to receiving a single notice or fails to object in writing
within 60 days after the Fund gives notice to the stockholder of its intent to
give a single notice. A stockholder may revoke consent given, whether affirmative or implied, by written notice to the Fund. The notice shall state the time of the meeting, the place of the meeting and, if the meeting is a special meeting or notice of the purpose is required by statute, the
purpose of the meeting. Notice is given to a stockholder when it is personally delivered to the stockholder, left at the stockholder&#146;s residence or usual place of business, mailed to the stockholder at the stockholder&#146;s address as it
appears on the records of the Fund or transmitted to the stockholder by an electronic transmission to any address or number of the stockholder at which the stockholder receives electronic transmissions.  If the Fund has received a request from a
stockholder that notice not be sent by electronic transmission, the Fund may not provide notice to the stockholder by electronic transmission. Notice given by electronic transmission shall be considered ineffective if the Fund is unable to deliver
two consecutive notices and the inability to deliver the notices becomes known to the Secretary, an Assistant Secretary, the transfer agent or other person responsible for giving the notice.  The inadvertent failure to deliver any notice by
electronic transmission does not invalidate any meeting or other action. An affidavit of the Secretary, an Assistant Secretary, the transfer agent or other agent of the Fund that notice has been given by a form of electronic transmission, in the
absence of actual fraud, shall be prima facie evidence of the facts stated in the affidavit. Notwithstanding the foregoing provisions, each person who is entitled to notice waives notice if the person before or after the meeting delivers a written
waiver or a waiver by electronic transmission which is filed with the records of stockholders&#146; meetings, or is present at the meeting in person or by proxy. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.05. </FONT></B><B><I><FONT face="serif">Quorum; Voting</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Unless any statute or the Charter provides otherwise, at a
meeting of stockholders the presence in person or by proxy of stockholders entitled to cast a majority of all the votes entitled to be cast at the meeting constitutes a quorum, except that where the holders of any class or series of shares are
entitled to vote as a separate class or series (such class or series being referred to as a &#147;Separate Class&#148;) or where the holders of two or more (but not all) classes or series of stock are required to vote as a single class or series
(such classes or series being referred to as a &#147;Combined Class&#148;), the presence in person or by proxy of the holders of a majority of the shares of that Separate Class or Combined Class, as the case may be, issued and outstanding and
entitled to vote thereat shall constitute a quorum for such vote. Unless any statute or the Charter provides otherwise, a majority of all the votes cast at a meeting at which a quorum is present is sufficient to approve any matter which properly
comes before the meeting, except that a plurality of all the votes cast at a meeting at which a quorum is present is sufficient to elect a director. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.06. </FONT></B><B><I><FONT face="serif">Adjournments</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Whether or not a quorum is present, a meeting of stockholders
convened on the date for which it was called may be adjourned from time to time without further notice by the chairman of the meeting to a date not more than 120 days after the original record date. Whether or not a quorum with respect to a Separate
Class or a Combined Class, as the case may be, is present, a meeting of stockholders of a Separate Class or a Combined Class convened on the date for which it was called may be adjourned from time to time without further notice by the chairman of
the meeting to a date not more than 120 days after the original record date.  Any business which might have been transacted at the meeting as originally notified may be deferred and transacted at any such adjourned meeting at which a quorum shall be
present. </FONT></P>
<P align=center>
<FONT face="serif">2</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.07. </FONT></B><B><I><FONT face="serif">General Right to Vote; Proxies</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Unless the Charter provides for a greater or
lesser number of votes per share or limits or denies voting rights, each outstanding share of stock (or fraction thereof), regardless of class or series, is entitled to one vote (or fraction of a vote) on each matter submitted to a vote at a meeting
of stockholders.  In all elections for directors, each share of stock (or fraction thereof) may be voted for as many individuals as there are directors to be elected and for whose election the share is entitled to be voted. A stockholder may vote
the stock (or fraction thereof) the stockholder owns of record either in person or by proxy. A stockholder may sign a writing authorizing another person to act as proxy. Signing may be accomplished by the stockholder or the stockholder&#146;s
authorized agent signing the writing or causing the stockholder&#146;s signature to be affixed to the writing by any reasonable means, including facsimile signature. A stockholder may authorize another person to act as proxy by transmitting, or
authorizing the transmission of, an authorization by a telegram, cablegram, datagram, electronic mail or any other electronic or telephonic means to the person authorized to act as proxy or to any other person authorized to receive the proxy
authorization on behalf of the person authorized to act as the proxy, including a proxy solicitation firm or proxy support service organization. Unless a proxy provides otherwise, it is not valid more than 11 months after its date. A proxy is
revocable by a stockholder at any time without condition or qualification unless the proxy states that it is irrevocable and the proxy is coupled with an interest. A proxy may be made irrevocable for so long as it is coupled with an interest. The
interest with which a proxy may be coupled includes an interest in the stock to be voted under the proxy or another general interest in the Fund or its assets or liabilities.</FONT><B><I><FONT face="serif"> </FONT></I></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.08. </FONT></B><B><I><FONT face="serif">List of Stockholders</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">At each meeting of stockholders, a full, true and complete
list of all stockholders entitled to vote at such meeting, showing the number, class and series of shares held by each stockholder and certified by the transfer agent for such class or series or by the Secretary, shall be furnished by the Secretary.
</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.09. </FONT></B><B><I><FONT face="serif">Conduct of Business</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Nominations of persons for election to the Board of
Directors and the proposal of business to be considered by the stockholders may be made at an annual meeting of stockholders (a) pursuant to the Fund&#146;s notice of meeting, (b) by or at the direction of the Board of Directors or (c) by any
stockholder of the Fund (i) who was a stockholder of record at the time of giving notice(s) provided for in Section 1.11 and Section 1.12, (ii) who is entitled to vote at the meeting and (iii) who complied with the notice(s) procedures set forth in
Section 1.11 and Section 1.12. Nominations of persons for election to the Board of Directors and the proposal of business to be considered by the stockholders may be made at a special meeting of stockholders (a) only pursuant to the Fund&#146;s
notice of meeting and (b), in the case of nominations of persons for election to the Board of Directors, (i) by or at the direction of the Board of Directors or (ii) by any stockholder of the Fund (A) who was a stockholder of record at the time of
giving notice provided for in Section 1.11, (B) who is entitled to vote at the meeting and (C) who complied with the notice procedures set forth in Section 1.11. The chairman of the meeting shall have the power and duty to determine whether a
nomination or any business proposed to be brought before the meeting was made in accordance with the procedures set forth in Section 1.11, Section 1.12 and this Section and, if any proposed nomination or business is not in compliance with Section
1.11, Section 1.12 and this Section, to declare that such defective nomination or proposal be disregarded. </FONT></P>
<P align=center>
<FONT face="serif">3</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.10. </FONT></B><B><I><FONT face="serif">Conduct of Voting</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">At all meetings of stockholders, unless the voting is
conducted by inspectors, the proxies and ballots shall be received, and all questions touching the qualification of voters and the validity of proxies, the acceptance or rejection of votes and procedures for the conduct of business not otherwise
specified by these Bylaws, the Charter or law, shall be decided or determined by the chairman of the meeting. If demanded by the holders, present in person or by proxy, of at least 10 percent of the shares issued and outstanding and entitled to vote
at the meeting, the vote upon any election or question shall be taken by ballot. Before any meeting of the stockholders, the Board of Directors may appoint persons to act as inspectors of election at the meeting and any adjournment thereof. If no
inspectors of election are so appointed, the chairman of the meeting may, and on the request of the holders, present in person or by proxy, of at least 10 percent of the shares issued and outstanding and entitled to vote at the meeting, shall,
appoint inspectors of election at the meeting.  The number of inspectors shall be either one or three. If inspectors are appointed at a meeting on the request of stockholders, the holders of a majority of shares present in person or by proxy shall
determine whether one or three inspectors are to be appointed. No candidate for election as a director at a meeting shall serve as an inspector thereat. If any person appointed as inspector fails to appear or fails or refuses to act, the chairman of
the meeting may, and upon the request of any stockholder shall, appoint a person to fill that vacancy.  The inspectors shall determine the number of shares outstanding and the voting power of each, the shares represented at the meeting, the
existence of a quorum, and the authenticity, validity and effect of proxies; receive votes, ballots or consents; hear and determine all challenges and questions in any way arising in connection with the right to vote; count and tabulate all votes or
consents; determine when polls shall close; determine the result; and do any other acts that may be proper to conduct the election or vote with fairness to all stockholders. Unless so demanded or ordered, no vote need be by ballot and voting need
not be conducted by inspectors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.11. </FONT></B><B><I><FONT face="serif">Advance Notice Provisions for Election of Directors</FONT></I></B><I><FONT face="serif">. </FONT></I><FONT face="serif">Only persons who are
nominated in accordance with the following procedures shall be eligible for election as directors of the Fund.  Nominations of persons for election to the Board of Directors may be made at any annual meeting of stockholders, or at any special
meeting of stockholders called for the purpose of electing directors, (a) by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (b) by any stockholder of the Fund (i) who is a stockholder of record on the
date of the giving of the notice provided for in this Section and on the record date for the determination of stockholders entitled to vote at such meeting and (ii) who complies with the notice procedures set forth in this Section. A
stockholder&#146;s notice must be delivered to or mailed and received by the Secretary at the principal executive offices of the Fund (a) 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; </FONT><I><FONT face="serif">provided, however</FONT></I><FONT face="serif">, that in the event that the date of the annual meeting is advanced by more than 30 days or delayed by more than 60 days from
the anniversary date of the preceding year&#146;s annual meeting or no annual meeting was held in the preceding year, notice by the stockholder must be so delivered not earlier than the 90</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT
face="serif"> day prior to such annual meeting and not later than the close of business on the later of the 60</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> day prior to such annual meeting or the tenth day following the day on
which public announcement of the date of such annual meeting is first made; and (b) in the case of a special meeting of stockholders called for the purpose of electing directors, 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.  A</FONT></P>
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<FONT face="serif">stockholder&#146;s notice to the Secretary must be in writing and set forth (a) as to each person whom the stockholder proposes to nominate for election as a director, all information relating to such person that is required to be
disclosed in connection with solicitations of proxies for election of directors pursuant to Regulation 14A of the Securities Exchange Act of 1934, as amended (the &#147;Exchange Act&#148;), and the rules and regulations promulgated thereunder; and
(b) as to the stockholder giving the notice (i) the name and address of such stockholder as they appear on the Fund&#146;s books and of the beneficial owner, if any, on whose behalf the nomination is made, (ii) the class or series and number of
shares of capital stock of the Fund which are owned beneficially or of record by such stockholder and such beneficial owner, (iii) a description of all arrangements or understandings between such stockholder and each proposed nominee and any other
person or persons (including their names) pursuant to which the nomination(s) are to be made by such stockholder, (iv) a representation that such stockholder intends to appear in person or by proxy at the meeting to nominate the persons named in its
notice and (v) any other information relating to such stockholder that would be required to be disclosed in a proxy statement or other filings required to be made in connection with solicitations of proxies for election of directors pursuant to
Regulation 14A of the Exchange Act and the rules and regulations promulgated thereunder. Such notice must be accompanied by a written consent of each proposed nominee to be named as a nominee and to serve as a director if elected.  No person shall
be eligible for election as a director of the Fund unless nominated in accordance with the procedures set forth in this Section. If the chairman of the meeting determines that a nomination was not made in accordance with the foregoing procedures,
the chairman of the meeting shall declare to the meeting that the nomination was defective and such defective nomination shall be disregarded. No adjournment or postponement of a meeting of stockholders shall commence a new period for the giving of
notice of a stockholder proposal hereunder.</FONT><I><FONT face="serif"> </FONT></I></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 1.12. </FONT></B><B><I><FONT face="serif">Advance Notice Provisions for Business to be Transacted at Annual Meeting</FONT></I></B><B><FONT face="serif">.</FONT></B><FONT face="serif">  No
business may be transacted at an annual meeting of stockholders, other than business that is either (a) specified in the notice of meeting (or any supplement thereto) given by or at the direction of the Board of Directors (or any duly authorized
committee thereof), (b) otherwise properly brought before the annual meeting by or at the direction of the Board of Directors (or any duly authorized committee thereof) or (c) otherwise properly brought before the annual meeting by any stockholder
of the Fund (i) who is stockholder of record on the date of the giving of the notice provided for in this Section and on the record date for the determination of stockholders entitled to vote at such annual meeting and (ii) who complies with the
notice procedures set forth in this Section. A stockholder&#146;s notice must be delivered to or mailed and received by the Secretary at the principal executive offices of the Fund not less than 90 days nor more than 120 days prior to the first
anniversary of the preceding year&#146;s annual meeting; </FONT><I><FONT face="serif">provided, however</FONT></I><FONT face="serif">, that in the event that the date of the annual meeting is advanced by more than 30 days or delayed by more than 60
days from the anniversary date of the preceding year&#146;s annual meeting or no annual meeting was held in the preceding year, notice by the stockholder must be so delivered not earlier than the 90</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT
face="serif"> day prior to such annual meeting and not later than the close of business on the later of the 60</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> day prior to such annual meeting or the tenth day following the day on
which public announcement of the date of such meeting is first made. A stockholder&#146;s notice to the Secretary must be in writing and set forth as to each matter such stockholder proposes to bring before the annual meeting (i) a brief description
of the business desired to be brought before the annual meeting and the reasons for conducting such business at the annual meeting, (ii) the name and address of such stockholder as they appear on the Fund&#146;s</FONT></P>
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<FONT face="serif">books and of the beneficial owner, if any, on whose behalf the proposal is made, (iii) the class or series and number of shares of capital stock of the Fund which are owned beneficially or of record by such stockholder and such
beneficial owner, (iv) a description of all arrangements or understandings between such stockholder and any other person or persons (including their names) in connection with the proposal of such business by such stockholder and any material
interest of such stockholder in such business, and (v) a representation that such stockholder intends to appear in person or by proxy at the annual meeting to bring such business before the meeting. No business shall be conducted at the annual
meeting of stockholders except business brought before the annual meeting in accordance with the procedures set forth in Section 1.11 or in this Section, </FONT><I><FONT face="serif">provided, however</FONT></I><FONT face="serif">, that once
business has been properly brought before the annual meeting in accordance with such procedures, nothing in Section 1.11 nor in this Section shall be deemed to preclude discussion by any stockholder of any such business. If the chairman of an annual
meeting determines that business was not properly brought before the annual meeting in accordance with the foregoing procedures, the chairman of the meeting shall declare to the meeting that the business was not properly brought before the meeting
and such business shall not be transacted.  No adjournment or postponement of a meeting of stockholders shall commence a new period for the giving of notice of a stockholder proposal hereunder. </FONT></P>
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<B><FONT face="serif">ARTICLE II. </FONT></B></P>
<P align="center">
<B><FONT face="serif">BOARD OF DIRECTORS </FONT></B></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.01. </FONT></B><B><I><FONT face="serif">Function of Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The business and affairs of the Fund shall be managed
under the direction of its Board of Directors. All powers of the Fund may be exercised by or under authority of the Board of Directors, except as conferred on or reserved to the stockholders by statute or by the Charter or these Bylaws. The Board of
Directors may delegate the duty of management of the assets and the administration of the day-to-day operations of the Fund to one or more entities or individuals pursuant to a written contract or contracts which have obtained the approvals,
including the approval of renewals thereof, required by the Investment Company Act of 1940, as amended (the &#147;Investment Company Act&#148;). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.02. </FONT></B><B><I><FONT face="serif">Number and Qualification of Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors shall consist of 3
directors, which number may be increased or decreased by a resolution of a majority of the entire board of directors, provided that the number of directors shall not be less than 3 or more than 15 nor shall any change in the number of directors
affect the tenure of office of any director.  The membership of the Board of Directors shall meet the applicable requirements under the Investment Company Act. No person shall stand for election or reelection as a director of the Fund if that person
would be 75 years old or older at the date of the proxy statement for the meeting of stockholders at which such election would take place, unless such person&#146;s candidacy shall have been approved by a unanimous vote of all of the directors
present at a meeting at which a quorum is present (other than any director whose candidacy is being approved). </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.03. </FONT></B><B><I><FONT face="serif">Election and Tenure of Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Subject to the rights of the holders of any
class or series of stock separately entitled to elect one or more directors, the directors shall be divided into three classes as nearly equal in number as possible, with the term of office of one class of directors expiring in each year. In
accordance with the provisions of the Charter, the </FONT></P>
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<FONT face="serif">classes shall be designated as Class I, Class II, and Class III, respectively. At each successive annual meeting of stockholders, the holders of stock present in person or by proxy at such meeting and entitled to vote thereat
shall elect members of each successive class to serve for three year terms and until their successors are elected and qualify (and, as appropriate, the members of any other class to serve for the remainder of the term of that class and until their
successors are elected and qualify).  If the number of directors is changed, any increase or decrease shall be apportioned among the classes so as to maintain the number of directors in each class as nearly equal as possible, and any additional
director of any class shall, subject to Section 2.05, hold office for a term that shall coincide with the remaining term of that class, but in no case shall a decrease in the number of directors shorten the term of any incumbent director.
</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.04. </FONT></B><B><I><FONT face="serif">Removal of Director</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Subject to the rights of the holders of any class or series
of stock separately entitled to elect one or more directors and unless statute provides otherwise, any director, or the entire Board of Directors, may be removed from office at any time, with or without cause, but only by the affirmative vote of at
least 75 percent of the votes entitled to be cast generally for the election for directors.</FONT><I><FONT face="serif"> </FONT></I></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.05. </FONT></B><B><I><FONT face="serif">Vacancy on Board of Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Subject to the Investment Company Act and
consistent with the election in Section 8.11, a majority of the remaining directors, whether or not sufficient to constitute a quorum, may fill a vacancy on the Board of Directors which results from any cause. Consistent with the election in Section
8.11, a director elected by the Board of Directors to fill a vacancy serves for the remainder of the full term of the class of directors in which the vacancy occurs and until his or her successor is elected and qualifies.</FONT><I><FONT
face="serif"> </FONT></I></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.06. </FONT></B><B><I><FONT face="serif">Regular Meetings</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">After each meeting of stockholders at which directors shall
have been elected, the Board of Directors shall meet as soon thereafter as practicable for the purpose of organization and the transaction of other business. In the event that no other time and place are specified by resolution of the Board of
Directors or announced by the President or the Chairman at such stockholders meeting, the Board of Directors shall meet immediately following the close of and at the place of such stockholders meeting. Any other regular meeting of the Board of
Directors shall be held on such date and time, at such place or by means of remote communication, as may be designated from time to time by the Board of Directors.  No notice of such meeting following a stockholders meeting or any other regular
meeting shall be necessary if held as hereinabove provided. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.07. </FONT></B><B><I><FONT face="serif">Special Meetings</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Special meetings of the Board of Directors may be called at
any time by the Chairman or by a majority of the Board of Directors or a majority of the members of the Executive Committee by vote at a meeting, or in writing or delivered by electronic transmission with or without a meeting. A special meeting of
the Board of Directors shall be held on such date, at any place or by means of remote communication, as may be designated from time to time by the Board of Directors.  In the absence of designation such meeting shall be held at such place or means
of remote communication as may be designated in the call. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.08. </FONT></B><B><I><FONT face="serif">Notice of Meetings</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Except as provided in Section 2.06, the Secretary shall give
notice to each director of each regular and special meeting of the Board of Directors. The notice shall state the time of the meeting and place or that the meeting is being held by</FONT></P>
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<FONT face="serif">means of remote communication. Notice is given to a director when it is delivered personally to him or her, left at his or her residence or usual place of business, or sent by electronic transmission, telegraph, facsimile
transmission, or telephone, at least 24 hours before the time of the meeting or, in the alternative by mail to his or her address as it shall appear on the records of the Fund, at least 72 hours before the time of the meeting. Unless these Bylaws or
a resolution of the Board of Directors provides otherwise, the notice need not state the business to be transacted at or the purposes of any regular or special meeting of the Board of Directors. No notice of any meeting of the Board of Directors
need be given to any director who attends except where a director attends a meeting for the express purpose of objecting to the transaction of any business because the meeting is not lawfully called or convened, or to any director who delivers a
written waiver or a waiver by electronic transmission which is filed with the records of the meeting either before or after the holding thereof, waiving such notice.  Any meeting of the Board of Directors, regular or special, may adjourn from time
to time to reconvene at the same or some other place, and no notice need be given of any such adjourned meeting other than by announcement. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.09. </FONT></B><B><I><FONT face="serif">Quorum; Action by Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">A majority of the total number of directors fixed
in accordance with these Bylaws shall constitute a quorum for the transaction of business. In the absence of a quorum, the directors present by majority vote and without notice other than by announcement may adjourn the meeting from time to time
until a quorum shall attend. At any such adjourned meeting at which a quorum shall be present, any business may be transacted which might have been transacted at the meeting as originally notified. Unless statute or the Charter or these Bylaws
requires a greater proportion, the action of a majority of the directors present at a meeting at which a quorum is present is the action of the Board of Directors. Except as to votes that the Investment Company Act requires to be taken in person,
any action required or permitted to be taken at a meeting of the Board of Directors may be taken without a meeting if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the Board of
Directors and filed in paper or electronic form with the minutes of proceedings of the Board of Directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.10. </FONT></B><B><I><FONT face="serif">Meeting by Conference Telephone</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Except as to votes that the Investment Company
Act requires to be taken in person, members of the Board of Directors may participate in a meeting by means of a conference telephone or other communications equipment if all persons participating in the meeting can hear each other at the same time.
Participation in a meeting by these means constitutes presence in person at a meeting. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.11. </FONT></B><B><I><FONT face="serif">Compensation</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">By resolution of the Board of Directors a fixed sum and expenses,
if any, for attendance at each regular or special meeting of the Board of Directors or of committees thereof, an annual retainer, and other compensation for their services as such or on committees of the Board of Directors, may be paid to directors.
Directors who are full-time employees of the Fund or &#147;affiliated persons&#148; as defined in the Investment Company Act of the Fund&#146;s investment advisor or principal underwriter shall not be paid for attendance at meetings of the Board of
Directors or committees thereof for which fees are paid to other directors. A director who serves the Fund in any other capacity also may receive compensation for such other services, pursuant to a resolution of the directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.12. </FONT></B><B><I><FONT face="serif">Resignation</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Any director may resign at any time by sending a written notice of
such resignation to the principal office of the Fund addressed to the Chairman or the President.  Unless otherwise specified therein such resignation shall take effect upon receipt thereof by the Chairman or the President. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.13. </FONT></B><B><I><FONT face="serif">Presumption of Assent</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">A director of the Fund who is present at a meeting of the
Board of Directors at which action on any corporate matter is taken shall be presumed to have assented to the action taken unless his or her dissent or abstention shall be entered in the minutes of the meeting or unless he or she shall file his or
her written dissent to such action with the person acting as the secretary of the meeting before the adjournment thereof or shall forward such dissent by registered mail to the Secretary of the Fund immediately after the adjournment of the meeting.
Such right to dissent shall not apply to a director who votes in favor of such action or fails to make his dissent known at the meeting. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 2.14. </FONT></B><B><I><FONT face="serif">Advisory Directors</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may by resolution appoint advisory
directors to the Board of Directors, who may also serve as directors emeriti, and shall have such authority and receive such compensation and reimbursement as the Board of Directors shall provide. Advisory directors or directors emeriti shall not
have voting rights in connection with any business of the Board of Directors or any committee of the Board of Directors. </FONT></P>
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<B><FONT face="serif">ARTICLE III. </FONT></B></P>
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<B><FONT face="serif">COMMITTEES </FONT></B></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 3.01. </FONT></B><B><I><FONT face="serif">Committees</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may appoint from among its members an
Executive Committee, an Audit Committee, a Nominating Committee, and other committees composed of one or more directors and delegate to these committees any of the powers of the Board of Directors, except the power to (i) authorize dividends on
stock (other than as provided below), (ii) elect directors, (iii) issue stock (other than as provided below), (iv) recommend to the stockholders any action which requires stockholder approval, (v) amend these Bylaws, or (vi) approve any merger or
share exchange which does not require stockholder approval. The Executive Committee, if appointed, shall have and may exercise all powers of the Board of Directors in the management of the business and affairs of the Fund that may lawfully be
exercised by a committee.  The membership of each committee shall meet the applicable requirements under the Investment Company Act. If the Board of Directors has given general authorization for a distribution and provides for or establishes a
method or procedure for determining the maximum amount of the distribution, a committee of the Board of Directors or an officer of the Fund, in accordance with that general authorization, may fix the amount and other terms of the distribution. If
the Board of Directors has given general authorization for the issuance of stock providing for or establishing a method or procedure for determining the maximum number of shares to be issued, a committee of the Board of Directors, in accordance with
that general authorization or any stock option or other plan or program adopted by the Board of Directors, may authorize or fix the terms of stock subject to classification or reclassification and the terms on which any stock may be issued,
including all terms and conditions required or permitted to be established or authorized by the Board of Directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 3.02. </FONT></B><B><I><FONT face="serif">Committee Procedure</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Each committee may fix rules of procedure for its business.
 A majority of the members of a committee shall constitute a quorum for the transaction of business and the act of a majority of those present at a meeting at which a quorum is present shall be the act of the committee.  The members of a committee
present at any meeting, whether or not they constitute a quorum, may appoint a director to act in the place of an absent or disqualified member. Any action required or permitted to be taken at a meeting of a committee may be taken without a meeting
if a unanimous consent which sets forth the action is given in writing or by electronic transmission by each member of the committee and filed in paper or electronic form with the minutes of the committee. The members of a committee may conduct any
meeting thereof by conference telephone in accordance with the provisions of Section 2.10. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 3.03. </FONT></B><B><I><FONT face="serif">Emergency</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">In the event of a state of disaster of sufficient severity to prevent
the conduct and management of the affairs and business of the Fund by its directors and officers as contemplated by the Charter and these Bylaws, any two or more available members of the then incumbent Executive Committee shall constitute a quorum
of that Committee for the full conduct and management of the affairs and business of the Fund in accordance with the provisions of Section 3.01. In the event of the unavailability, at such time, of a minimum of two members of the then incumbent
Executive Committee, the available directors shall elect an Executive Committee consisting of any two members of the Board of Directors, whether or not they be officers of the Fund, which two members shall constitute the Executive Committee for the
full conduct and management of the affairs of the Fund in accordance with the foregoing provisions of this Section. This Section shall be subject to implementation by resolution of the Board of Directors passed from time to time for that purpose,
and any provisions of these Bylaws (other than this Section) and any resolutions which are contrary to the provisions of this Section or to the provisions of any such implementary resolutions shall be suspended until it shall be determined by any
interim Executive Committee acting under this Section that it shall be to the advantage of the Fund to resume the conduct and management of its affairs and business under all the other provisions of these Bylaws. </FONT></P>
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<B><FONT face="serif">ARTICLE IV. </FONT></B></P>
<P align="center">
<B><FONT face="serif">OFFICERS </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.01. </FONT></B><B><I><FONT face="serif">Executive and Other Officers</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund shall have a Chairman, a President, a
Secretary, and a Treasurer. The Fund may also have one or more Vice Chairmen, Vice Presidents, assistant officers, and subordinate officers at the designation by the Board of Directors. A person may hold more than one office in the Fund except that
no person may serve concurrently as both President and Vice President of the Fund.  The Chairman and any Vice Chairmen shall be directors, and the other officers may be directors. The Board of Directors may designate a chief investment officer, a
chief financial officer, a chief accounting officer, a chief administrative officer, or other officers with functional titles and specify the duties of such officers. A person may hold more than one functional title in the Fund. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.02. </FONT></B><B><I><FONT face="serif">Chairman</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Chairman shall preside at all meetings of the Board of Directors
and of the stockholders at which he or she shall be present and shall perform such other </FONT></P>
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<FONT face="serif">duties and have such other powers as are from time to time assigned to him or her by the Board of Directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.03. </FONT></B><B><I><FONT face="serif">Vice Chairmen</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Vice Chairman or Vice Chairmen, at the request of the
Chairman, or in the Chairman&#146;s absence or during his or her inability to act, shall perform the duties and exercise the functions of the Chairman, and when so acting shall have the powers of the Chairman.  If there be more than one Vice
Chairman, the Board of Directors may determine which one or more of the Vice Chairmen shall perform any of such duties or exercise any of such functions, or if such determination is not made by the Board of Directors, the Chairman may make such
determination; otherwise any of the Vice Chairmen may perform any of such duties or exercise any of such functions.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.04. </FONT></B><B><I><FONT face="serif">President</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The President shall be the chief executive officer of the Fund, shall
have general supervision of the business and affairs of the Fund and shall see that all orders and resolutions of the Board of Directors are carried out. He or she may execute, in the name of the Fund, all authorized deeds, mortgages, bonds,
contracts or other instruments, except in cases in which the signing and execution thereof shall have been expressly delegated to some other officer or agent of the Fund.  In general, he or she shall perform such other duties customarily performed
by the president and chief executive officer of a closed-end investment company and shall perform such other duties and have such other powers as are from time to time assigned to him or her by the Board of Directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.05. </FONT></B><B><I><FONT face="serif">Vice Presidents. </FONT></I></B><FONT face="serif">The Vice President or Vice Presidents, at the request of the President, or in the
President&#146;s absence or during his or her inability to act, shall perform the duties and exercise the functions of the President, and when so acting shall have the powers of the President. If there be more than one Vice President, the Board of
Directors may determine which one or more of the Vice Presidents shall perform any of such duties or exercise any of such functions, or if such determination is not made by the Board of Directors, the President may make such determination; otherwise
any of the Vice Presidents may perform any of such duties or exercise any of such functions. Each Vice President shall perform such other duties and have such other powers, and have such additional descriptive designations in their titles (if any),
as are from time to time assigned to them by the Board of Directors or the President. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.06. </FONT></B><B><I><FONT face="serif">Secretary</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Secretary shall keep the minutes of the meetings of the
stockholders, of the Board of Directors and of any committees, in books provided for the purpose; he or she shall see that all notices are duly given in accordance with the provisions of these Bylaws or as required by law; he or she shall be
custodian of the records of the Fund; he or she may witness any document on behalf of the Fund, the execution of which is duly authorized, see that the corporate seal is affixed where such document is required or desired to be under its seal, and,
when so affixed, may attest the same. In general, he or she shall perform such other duties customarily performed by a secretary of a closed-end investment company, and shall perform such other duties and have such other powers as are from time to
time assigned to him or her by the Board of Directors or the President.</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.07. </FONT></B><B><I><FONT face="serif">Treasurer</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Treasurer shall have charge of and be responsible for all funds,
securities, receipts and disbursements of the Fund, and shall deposit, or cause to be deposited, in the name of the Fund, all moneys or other valuable effects in such banks, trust</FONT></P>
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<FONT face="serif">companies or other depositories as shall, from time to time, be selected by the Board of Directors; he or she shall render to the President and to the Board of Directors, whenever requested, an account of the financial condition
of the Fund. In general, he or she shall perform such other duties customarily performed by a treasurer of a closed-end investment company, and shall perform such other duties and have such other powers as are from time to time assigned to him or
her by the Board of Directors or the President. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.08. </FONT></B><B><I><FONT face="serif">Assistant and Subordinate Officers</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The assistant and subordinate officers of
the Fund are all officers below the office of Vice President, Secretary, or Treasurer. The assistant or subordinate officers shall have such duties as are from time to time assigned to them by the Board of Directors or the President. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.09. </FONT></B><B><I><FONT face="serif">Election, Tenure and Removal of Officers</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors shall elect the
officers of the Fund. Election or appointment of an officer, employee or agent shall not of itself create contract rights.  All officers shall be appointed to hold their offices, respectively, during the pleasure of the Board of Directors. The Board
of Directors may remove an officer at any time, with or without cause. The removal of an officer does not prejudice any of his or her contract rights. The Board of Directors may fill a vacancy which occurs in any office. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 4.10. </FONT></B><B><I><FONT face="serif">Compensation</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors shall have power to fix the salaries and
other compensation and remuneration, if any, of all officers of the Fund. No officer shall be prevented from receiving such salary by reason of the fact that he or she is also a director of the Fund.</FONT></P>
<P align="center">
<B><FONT face="serif">ARTICLE V. </FONT></B></P>
<P align="center">
<B><FONT face="serif">INDEMNIFICATION </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 5.01. </FONT></B><B><I><FONT face="serif">General Indemnification</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund shall indemnify (i) its present and former
directors and officers, whether serving or having served the Fund or at its request any other entity, to the fullest extent required or permitted by Maryland law in effect from time to time (as limited by the Investment Company Act), including the
advance of costs and expenses (including attorneys&#146; fees) under the procedures and to the fullest extent permitted by law, and (ii) other employees and agents to such extent as shall be authorized by the Board of Directors, the Charter, or this
Bylaw and as permitted by law. The foregoing rights of indemnification shall not be exclusive of any other rights to which those seeking indemnification may be entitled. The Board of Directors may take such action as is necessary to carry out these
indemnification provisions and is expressly empowered to adopt, approve, and amend from time to time such bylaws, resolutions, or contracts implementing such provisions or such further indemnification arrangements as may be permitted by law. No
amendment of this Bylaw or repeal of any of its provisions shall limit or eliminate the right of indemnification provided hereunder with respect to acts or omissions occurring prior to such amendment or repeal.</FONT><B><FONT face="serif">
</FONT></B></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 5.02. </FONT></B><B><I><FONT face="serif">Procedure</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Any indemnification, or payment of costs and expenses in advance of
the final disposition of any proceeding, shall be made promptly, and in any event within 60 days, upon the written request of the director or officer entitled to seek indemnification </FONT></P>
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<FONT face="serif">12  </FONT></P>

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<FONT face="serif">(the &#147;Indemnified Party&#148;).  The right to indemnification and advances hereunder shall be enforceable by the Indemnified Party in any court of competent jurisdiction, if (i) the Fund denies such request, in whole or in
part, or (ii) no disposition thereof is made within 60 days. The Indemnified Party&#146;s costs and expenses (including attorneys&#146; fees) incurred in connection with successfully establishing his or her right to indemnification, in whole or in
part, in any such action shall also be paid or reimbursed by the Fund.  It shall be a defense to any action for advance for costs and expenses that (a) a determination has been made that the facts then known to those making the determination would
preclude indemnification or (b) the Fund has not received both (i) an undertaking as required by law to repay such advances in the event it shall ultimately be determined that the standard of conduct has not been met and (ii) a written affirmation
by the Indemnified Party of such Indemnified Party&#146;s good faith belief that the standard of conduct necessary for indemnification by the Fund has been met. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 5.03. </FONT></B><B><I><FONT face="serif">Exclusivity, Etc</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The indemnification and advance of costs and expenses provided
by the Charter and this Bylaw shall not be deemed exclusive of any other rights to which a person seeking indemnification or advance of costs and expenses may be entitled under any law (common or statutory), or any agreement, vote of stockholders or
disinterested directors or other provision that is consistent with law, both as to action in his or her official capacity and as to action in another capacity while holding office or while employed by or acting as agent for the Fund, shall continue
in respect of all events occurring while a person was a director or officer after such person has ceased to be a director or officer, and shall inure to the benefit of the estate, heirs, executors and administrators of such person. The Fund shall
not be liable for any payment under this Bylaw in connection with a claim made by a director or officer to the extent such director or officer has otherwise actually received payment under insurance policy, agreement, vote or otherwise, of the
amounts otherwise indemnifiable hereunder. All rights to indemnification and advance of costs and expenses under the Charter of the Fund and hereunder shall be deemed to be a contract between the Fund and each director or officer of the Fund who
serves or served in such capacity at any time while this Bylaw is in effect.  Nothing herein shall prevent the amendment of this Bylaw, provided that no such amendment shall diminish the rights of any person hereunder with respect to events
occurring or claims made before its adoption or as to claims made after its adoption in respect of events occurring before its adoption. Any repeal or modification of this Bylaw shall not in any way diminish any rights to indemnification or advance
of costs and expenses of such director or officer or the obligations of the Fund arising hereunder with respect to events occurring, or claims made, while this Bylaw or any provision hereof is in force. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 5.04. </FONT></B><B><I><FONT face="serif">Insurance. </FONT></I></B><FONT face="serif">The Fund may purchase and maintain insurance on behalf of any Indemnified Party against any liability
asserted against and incurred by any Indemnified Party in any protected capacity or arising out of his or her position. The Fund may purchase and maintain insurance on its behalf in respect of any liability it may incur to provide indemnification
under the Charter, this Bylaw, or law. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 5.05. </FONT></B><B><I><FONT face="serif">Severability; Definitions</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The invalidity or unenforceability of any provision
of this Article V shall not affect the validity or enforceability of any other provision hereof. The phrase &#147;this Bylaw&#148; in this Article V means this Article V in its entirety. </FONT></P>
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<B><FONT face="serif">ARTICLE VI. </FONT></B></P>
<P align=center>
<B><FONT face="serif">STOCK </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.01. </FONT></B><B><I><FONT face="serif">Certificates for Stock</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may determine to issue
certificated or uncertificated shares of capital stock and other securities of the Fund.  For certificated stock, each stockholder is entitled to certificates which represent and certify the shares of stock he or she holds in the Fund. Each stock
certificate (a) shall be in such form, not inconsistent with law or with the Charter, as shall be approved by the Board of Directors or any officer or officers designated for such purpose by resolution of the Board of Directors, (b) shall include on
its face the name of the Fund, the name of the stockholder or other person to whom it is issued, and the class or series of stock and number of shares it represents, (c) shall be signed by the Chairman, the President, or a Vice President, and
countersigned by the Secretary, an Assistant Secretary, the Treasurer, or an Assistant Treasurer and (d) may be sealed with the actual corporate seal or a facsimile of it or in any other form and the signatures may be either manual or facsimile
signatures. Each stock certificate shall also include on its face or back (a) a statement of any restrictions on transferability and a statement of the designations and any preferences, conversion and other rights, voting powers, restrictions,
limitations as to dividends, qualifications, and terms and conditions of redemption of the stock of each class or series which the Fund is authorized to issue, of the differences in the relative rights and preferences between the shares of each
series of a preferred or special class in series which the Fund is authorized to issue, to the extent they have been set, and of the authority of the Board of Directors to set the relative rights and preferences of subsequent series of a preferred
or special class of stock or (b) a statement which provides in substance that the Fund will furnish a full statement of such information to any stockholder on request and without charge. Such request may be made to the Secretary or to its transfer
agent.  Except as provided in the Maryland Uniform Commercial Code - Investment Securities, the fact that a stock certificate does not contain or refer to a restriction on transferability that is adopted after the date of issuance does not mean that
the restriction is invalid or unenforceable. A stock certificate is valid and may be issued whether or not an officer who signed it is still an officer when it is issued. A certificate may not be issued until the stock represented by it is fully
paid.  Upon the issuance of uncertificated shares of capital stock, the Fund shall send the stockholder a written statement of the same information required above on the certificate and by the Maryland Uniform Commercial Code - Investment
Securities. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.02. </FONT></B><B><I><FONT face="serif">Transfers</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors shall have power and authority to make such
rules and regulations as it may deem expedient concerning the issue, transfer and registration of certificates of stock; and may appoint transfer agents and registrars thereof. The duties of transfer agent and registrar may be combined. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.03. </FONT></B><B><I><FONT face="serif">Record Dates or Closing of Transfer Books</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may, and shall
have the sole power to, set a record date or direct that the stock transfer books be closed for a stated period for the purpose of making any proper determination with respect to stockholders, including which stockholders are entitled to request a
special meeting of stockholders, notice of a meeting of stockholders, vote at a meeting of stockholders, receive a dividend, or be allotted other rights. The record date may not be prior to the close of business on the day the record date is fixed
nor, subject to Section 1.06, more than 90 days before the date on </FONT></P>
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<FONT face="serif">14  </FONT></P>

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<FONT face="serif">which the action requiring the determination will be taken; the transfer books may not be closed for a period longer than 20 days; and, in the case of a meeting of stockholders, the record date or the closing of the transfer books
shall be at least ten days before the date of the meeting. Any shares of the Fund&#146;s own stock acquired by the Fund between the record date for determining stockholders entitled to notice of or to vote at a meeting of stockholders and the time
of the meeting may be voted at the meeting by the holder of record as of the record date and shall be counted in determining the total number of outstanding shares entitled to be voted at the meeting.</FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.04. </FONT></B><B><I><FONT face="serif">Stock Ledger</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund shall maintain a stock ledger which contains the name and
address of each stockholder and the number of shares of stock of each class or series which the stockholder holds. The stock ledger may be in written form or in any other form which can be converted within a reasonable time into written form for
visual inspection. The original or a duplicate of the stock ledger shall be kept at the offices of a transfer agent for the particular class or series of stock, or, if none, at the principal office in the State of Maryland or the principal executive
offices of the Fund. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.05. </FONT></B><B><I><FONT face="serif">Certification of Beneficial Owners</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may adopt by
resolution a procedure by which a stockholder of the Fund may certify in writing to the Fund that any shares of stock registered in the name of the stockholder are held for the account of a specified person other than the stockholder. The resolution
shall set forth the class or series of stockholders who may certify; the purpose for which the certification may be made; the form of certification and the information to be contained in it; if the certification is with respect to a record date or
closing of the stock transfer books, the time after the record date or closing of the stock transfer books within which the certification must be received by the Fund; and any other provisions with respect to the procedure which the Board of
Directors considers necessary or desirable. On receipt of a certification which complies with the procedure adopted by the Board of Directors in accordance with this Section, the person specified in the certification is, for the purpose set forth in
the certification, the holder of record of the specified stock in place of the stockholder who makes the certification. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 6.06. </FONT></B><B><I><FONT face="serif">Lost Stock Certificates. </FONT></I></B><FONT face="serif">The Board of Directors may determine the conditions for issuing a new stock certificate
in place of one which is alleged to have been lost, stolen, or destroyed, or the Board of Directors may delegate such power to any officer or officers of the Fund. In their discretion, the Board of Directors or such officer or officers may require
the owner of the certificate to give bond, with sufficient surety, to indemnify the Fund against any loss or claim arising as a result of the issuance of a new certificate. In their discretion, the Board of Directors or such officer or officers may
refuse to issue such new certificate save upon the order of some court having jurisdiction in the premises. </FONT></P>
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<B><FONT face="serif">ARTICLE VII. </FONT></B></P>
<P align=center>
<B><FONT face="serif">FINANCE </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.01. </FONT></B><B><I><FONT face="serif">Negotiable Instruments</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">All checks, drafts and orders for the payment of money,
notes and other evidences of indebtedness, issued in the name of the Fund, shall, unless otherwise provided by resolution of the Board of Directors, be signed by the Chairman, the President, a Vice President, an Assistant Vice President, the
Treasurer, an Assistant </FONT></P>
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<FONT face="serif">Treasurer, the Secretary or an Assistant Secretary (or in the name of the Fund by a custodian appointed under Section 7.06 by not less than two of its officers). </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.02. </FONT></B><B><I><FONT face="serif">Annual Statement of Affairs</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The President or the chief accounting officer shall
prepare annually a full and correct statement of the affairs of the Fund, to include a balance sheet and a financial statement of operations for the preceding fiscal year. The statement of affairs shall be submitted at any annual meeting of the
stockholders. Within 20 days after the annual meeting of stockholders or, if the Fund is not required to hold an annual meeting of stockholders, within 120 days after the end of the fiscal year, the statement of affairs shall be placed on file at
the Fund&#146;s principal office. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.03. </FONT></B><B><I><FONT face="serif">Fiscal Year</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The fiscal year of the Fund shall be the 12 calendar months period
ending December 31 in each year, unless otherwise provided by the Board of Directors. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.04. </FONT></B><B><I><FONT face="serif">Dividends</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">If declared by or under authority of the Board of Directors, the Fund
may pay dividends on its shares in cash, property, or in shares of the capital stock of the Fund, unless such dividend is contrary to law or to a restriction contained in the Charter. The Board of Directors may prescribe from time to time that
dividends declared are payable at the election of any of the stockholders, either in cash or in shares of the Fund. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.05. </FONT></B><B><I><FONT face="serif">Valuation of Assets. </FONT></I></B><FONT face="serif">The Board of Directors shall establish procedures to govern the valuation of the portfolio
securities held by the Fund, which procedures shall be consistent with the requirements of the Investment Company Act</FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 7.06. </FONT></B><B><I><FONT face="serif">Employment of Custodian. </FONT></I></B><FONT face="serif">The Fund shall place and maintain its securities, similar investments and related funds
in the custody of one or more custodians (including one or more subcustodians for maintaining its foreign securities, similar foreign investments and related funds) meeting the requirements of the Investment Company Act, or may serve as its own
custodian in accordance with such rules and regulations or orders as the Securities and Exchange Commission the &#147;Commission&#148;) may from time to time prescribe for the protection of investors. Securities held by a custodian may be registered
in the name of the Fund, including the designation of the particular class or series of stock to which such assets belong, or any such custodian, or the nominee of either of them.  Subject to such rules, regulations, and orders as the Commission may
adopt as necessary or appropriate for the protection of investors, the Fund or any custodian, with the consent of the Fund, may deposit all or any part of the securities owned by the Fund in a system for the central handling of securities, pursuant
to which system all securities of a particular class or series of any issuer deposited within the system are treated as fungible and may be transferred or pledged by bookkeeping entry without physical delivery of such securities. </FONT></P>
<P align=center>
<B><FONT face="serif">ARTICLE VIII. </FONT></B></P>
<P align=center>
<B><FONT face="serif">SUNDRY PROVISIONS </FONT></B></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.01. </FONT></B><B><I><FONT face="serif">Offices</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The principal office of  the Fund in the State of Maryland shall be
located in the City of Baltimore. The Fund may also have offices at such other places as the Board of Directors may from time to time determine or the business of the Fund may require. </FONT></P>
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<FONT face="serif">16  </FONT></P>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.02. </FONT></B><B><I><FONT face="serif">Books and Records</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund shall keep correct and complete books and records of
its accounts and transactions and minutes of the proceedings of its stockholders and Board of Directors and of any executive or other committee when exercising any of the powers of the Board of Directors. The books and records of the Fund may be in
written form or in any other form which can be converted within a reasonable time into written form for visual inspection. Minutes shall be recorded in written form but may be maintained in the form of a reproduction.  The original or a certified
copy of these Bylaws shall be kept at the principal office of the Fund. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.03. </FONT></B><B><I><FONT face="serif">Corporate Seal</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors shall provide a suitable seal, bearing
the name of the Fund, which shall be in the charge of the Secretary.  The Board of Directors may authorize one or more duplicate seals and provide for the custody thereof. If the Fund is required to place its corporate seal to a document, it is
sufficient to meet the requirement of any law, rule, or regulation relating to a corporate seal to place the word &#147;(seal)&#148; adjacent to the signature of the person authorized to sign the document on behalf of the Fund. </FONT></P>
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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.04. </FONT></B><B><I><FONT face="serif">Bonds</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Board of Directors may, in its discretion, require any officer, agent
or employee of the Fund to give a bond to the Fund, conditioned upon the faithful discharge of his or her duties to the Fund, with one or more sureties and in such amount as may be satisfactory to the Board of Directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.05. </FONT></B><B><I><FONT face="serif">Voting Stock in Other Corporations</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Stock of other corporations or associations,
registered in the name of the Fund, may be voted by the President, a Vice President, or a proxy appointed by either of them. The Board of Directors, however, may by resolution appoint some other person to vote such shares, in which case such person
shall be entitled to vote such shares upon the production of a certified copy of such resolution. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.06. </FONT></B><B><I><FONT face="serif">Mail</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Any notice or other document which is required by these Bylaws to be
mailed shall be deposited in the United States mails, postage prepaid. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.07. </FONT></B><B><I><FONT face="serif">Electronic Transmission</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">An electronic transmission is any form of
communication, not directly involving the physical transmission of paper, that creates a record that may be retained, retrieved, and reviewed by a recipient of the communication and may be reproduced directly in paper form by a recipient through an
automated process. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.08. </FONT></B><B><I><FONT face="serif">Contracts and Documents</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">To the extent permitted by applicable law, and except
as otherwise prescribed by the Charter or these Bylaws, the Board of Directors may authorize any officer, employee or agent of the Fund (or a custodian appointed under Section 7.06 by not less than two of its officers) to authorize, sign, execute,
acknowledge, verify, accept or deliver any contracts, agreements, assignments, indentures, mortgages, deeds, conveyances, transfers, certificates, declarations, receipts, discharges, releases, satisfactions, settlements, petitions, schedules,
accounts, affidavits, bonds, undertakings, proxies, regulatory filings and other instruments or documents in the name of and on behalf of the Fund. Such authority may be general or confined to specific instances. A person who holds more than one
office in the Fund may not act in more than one capacity to sign, execute, acknowledge, or verify an instrument required by law to be signed, executed, acknowledged, or verified by more than one officer. </FONT></P>
<P align=center>
<FONT face="serif">17</FONT></P>

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<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.09. </FONT></B><B><I><FONT face="serif">Reliance</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">Each director and officer of the Fund shall, in the performance of his
or her duties with respect to the Fund, be entitled to rely on any information, opinion, report or statement, including financial statement or other financial data, prepared or presented by an officer or employee of the Fund whom the director or
officer reasonably believes to be reliable and competent in the matters presented, by a lawyer, certified public accountant or other person as to a matter which the director or officer reasonably believes to be within the person&#146;s professional
or expert competence or by a committee of the Board of Directors on which the director does not serve, as to a matter within its designated authority, if the director reasonably believes the committee to merit confidence. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.10. </FONT></B><B><I><FONT face="serif">Certain Rights of Directors, Officers, Employees and Agents</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The directors shall
have no responsibility to devote their full time to the affairs of the Fund. Any director or officer, employee or agent of the Fund, in his or her personal capacity or in a capacity as an affiliate, employee, or agent of any other person, or
otherwise, may have business interests and engage in business activities similar to or in addition to those of or relating to the Fund, subject to compliance with the Fund&#146;s codes of ethics. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.11. </FONT></B><B><I><FONT face="serif">Subtitle 8, Title 3 Election</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">The Fund elects to be subject to the provisions of
Section 3-804(c) of Subtitle 8 of Title 3 of the Maryland General Corporation Law relating to the filling of vacancies on the Board of Directors. </FONT></P>
<P align=justify>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">SECTION 8.12. </FONT></B><B><I><FONT face="serif">Amendments</FONT></I></B><B><FONT face="serif">. </FONT></B><FONT face="serif">In accordance with the Charter, these Bylaws may be repealed,
altered, amended or rescinded and new bylaws may be adopted (a) by the stockholders of the Fund (considered for this purpose as one class) by the affirmative vote of not less than a majority of all the votes entitled to be cast by the outstanding
shares of capital stock of the Fund generally in the election of directors which are cast on the matter at any meeting of the stockholders called for that purpose (provided that notice of such proposal is included in the notice of such meeting) or
(b) by the Board of Directors by the affirmative vote of not less than two-thirds of the Board of Directors at a meeting held in accordance with the provisions of these Bylaws.</FONT><I><FONT face="serif"> </FONT></I></P>
<P align=center>
<FONT face="serif">18</FONT></P>

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<DOCUMENT>
<TYPE>EX-99.2.D.11
<SEQUENCE>6
<FILENAME>c42214_ex99-d11.htm
<TEXT>

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<P align="right">
<FONT face="serif"><b>Exhibit d.11</b> </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>

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<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 TH 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>

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<DOCUMENT>
<TYPE>EX-99.2.D.12
<SEQUENCE>7
<FILENAME>c42214_ex99-d12.htm
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<P align="right">
<FONT face="serif"><b>Exhibit d.12</b> </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 TH 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 TH 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>

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<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
TH 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 TH 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 TH 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>

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<DOCUMENT>
<TYPE>EX-99.2.L.1
<SEQUENCE>8
<FILENAME>c42214_ex99-l1.htm
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<P align="right">
<B><FONT face="serif">Exhibit l.1 </FONT></B></P>
<P align="right">&nbsp;</P>
<P align="right">&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD align=left valign="top">
<FONT face="serif">July 5, 2006</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD rowspan="2" align=right valign="top">
<FONT size=1 face="sans-serif">Mayer, Brown, Rowe &amp; Maw LLP<br>71
South Wacker Drive<br>
Chicago, Illinois 60606-4637</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
  </TR>
<TR>
	<TD colspan=3>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD>&nbsp;
	</TD>
	<TD rowspan="2" align=right valign="top">
<FONT size=1 face="sans-serif">Main Tel (312) 782-0600<br>
Main Fax (312) 701-7711<br>www.mayerbrownrowe.com</FONT></TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">DNP Select Income Fund Inc.</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">55 East Monroe Street, Suite 3600</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>
<FONT face="serif">Chicago, Illinois 60603</FONT>&nbsp;
	</TD>
	<TD>&nbsp;
	</TD>
	<TD align=left>&nbsp;

	</TD>
</TR>
</TABLE>
<BR>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
	<TD width=4% align=right>
      <div align="left"><FONT face="serif">Re:&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&nbsp;
      </div></TD>
	<TD width=96% align=left>
<FONT face="serif">Registration Statement on Form N-2</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<FONT face="serif">1933 Act File No. 333-133715</FONT>&nbsp;
	</TD>
  </TR>
<TR valign="bottom">
	<TD align=left>&nbsp;

	</TD>
	<TD align=left>
<U><FONT face="serif">1940 Act File No. 811-04915</FONT></U>&nbsp;
	</TD>
  </TR>
</TABLE>
<BR>
<P>
<FONT face="serif">Ladies and Gentlemen: </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We have acted as counsel to DNP Select Income Fund Inc., a closed-end management investment company organized as a Maryland corporation (the &#147;Fund&#148;), in connection with the proposed offering
by the Fund of 4,000 shares of Auction Preferred Stock, Series T, &#36;.001 par value per share, and 4,000 shares of Auction Preferred Stock, Series TH, &#36;.001 par value per share, of the Fund (collectively, the &#147;Preferred
Stock&#148;).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">This opinion is furnished in connection with the filing of the Fund's Registration Statement
on Form N-2 under the Securities Act of 1933, as amended (File No. 333-133715)
(the &#147;Registration Statement&#148;).</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In connection with this opinion, we have examined originals or copies, certified or otherwise identified to our satisfaction, of such records of the Fund and such agreements, certificates of public
officials, certificates of officers or other representatives of the Fund and others, and such other documents, certificates and records as we have deemed necessary or appropriate as a basis for the opinions set forth herein. In our examination, we
have assumed the legal capacity of all natural persons, the genuineness of all signatures, the authenticity of all documents submitted to us as originals, the conformity to original documents of all documents submitted to us as certified, conformed
or photostatic copies and the authenticity of the originals of such copies. In making our examination of documents, we have assumed that the parties thereto, other than the Fund, had or will have the power, corporate or other, to enter into and
perform all obligations thereunder and have also assumed the due authorization by all requisite action, corporate or other, and execution and delivery by such parties of such documents and the validity and binding effect thereof on such parties. We
have also assumed that the underwriting agreement (the &#147;Underwriting Agreement&#148;) between the Fund and the underwriter party thereto (the &#147;Underwriter&#148;) relating to the offer and sale of the Preferred Stock will be executed and
delivered in substantially the form reviewed by us and that the share certificates representing each series of Preferred Stock will conform to the specimen examined by us. As to any facts material to the opinions expressed herein which we have not
independently established or </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<FONT face="serif">DNP Select Income Fund Inc. </FONT><BR>
<FONT face="serif">July 5, 2006 </FONT><BR>
<FONT face="serif">Page 2 </FONT><BR>
<P>
<FONT face="serif">verified, we have relied upon statements and representations of officers and other representatives of the Fund and others. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We do not express any opinion as to any laws concerning any law other than the law of the State of Illinois and, to the extent set forth herein, the law of the State of Maryland. Insofar as the
opinion expressed herein relates to or is dependent upon matters governed by the law of the State of Maryland, we have relied on the opinion of DLA Piper Rudnick Gray Cary US LLP dated the date hereof. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Based upon and subject to the foregoing, we are of the opinion that when (i) the Registration Statement becomes effective, (ii) the Underwriting Agreement has been duly executed and delivered, (iii)
certificates representing the Preferred Stock in the form of the specimen certificates examined by us have been manually signed by an authorized officer of the transfer agent and registrar for the Preferred Stock and registered by such transfer
agent and registrar, (iv) the Preferred Stock has been delivered to and paid for by the Underwriter in accordance with the terms of the Underwriting Agreement, (v) the Pricing Committee of the Board of Directors of the Fund (the &#147;Board&#148;)
has determined certain of the terms, rights and preferences of the Preferred Stock pursuant to authority delegated to it by the Board and (vi) the Articles Supplementary relating to the Preferred Stock have been filed with the State Department of
Assessments and Taxation of Maryland, the issuance and sale of the Preferred Stock will have been duly authorized by the Fund, and the Preferred Stock will be validly issued, fully paid and nonassessable. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We hereby consent to the filing of this opinion with the U.S. Securities and Exchange Commission as an exhibit to the Registration Statement. We also consent to the reference to our firm in the
Registration Statement. </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 face="serif">Very truly yours,</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT face="serif">/s/ Mayer, Brown, Rowe &amp; Maw LLP</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT face="serif">Mayer, Brown, Rowe &amp; Maw LLP</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<BR>

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<DOCUMENT>
<TYPE>EX-99.2.L.2
<SEQUENCE>9
<FILENAME>c42214_ex99-l2.htm
<TEXT>

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<P align="right">
<B><FONT face="serif">Exhibit l.2 </FONT></B></P>

<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
  <TD align=left nowrap>&nbsp;</TD>
</TR>
<TR valign="bottom">
  <TD width=82% align=left>&nbsp;</TD>
	<TD width=18% align=left nowrap>
<B><FONT size=2 face="sans-serif">DLA Piper Rudnick Gray Cary US LLP</FONT></B>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">The Marbury Building</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">6225 Smith Avenue</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<FONT size=2 face="sans-serif">Baltimore, Maryland 21209-3600</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">T </FONT></B><FONT size=2 face="sans-serif">410.580.3000</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">F </FONT></B><FONT size=2 face="sans-serif">410.580.3001</FONT>&nbsp;
	</TD>
</TR>
<TR valign="bottom">
  <TD align=left>&nbsp;</TD>
	<TD align=left>
<B><FONT size=2 face="sans-serif">W </FONT></B><FONT size=2 face="sans-serif">www.dlapiper.com</FONT>&nbsp;
	</TD>
</TR>
</TABLE>
<p>&nbsp;</p>
<P align="center">
<FONT face="serif">July 5, 2006 </FONT></P>
<P align="center">&nbsp;</P>
<FONT face="serif">DNP</FONT><FONT size=2 face="serif"> </FONT><FONT face="serif">S</FONT><FONT size=2 face="serif">ELECT </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NCOME </FONT><FONT face="serif">F</FONT><FONT size=2
face="serif">UND </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NC</FONT><FONT face="serif">. </FONT><BR>
<FONT face="serif">55 East Monroe Street </FONT><BR>
<FONT face="serif">Chicago, Illinois 60603 </FONT><BR>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </FONT><U><FONT face="serif">Registration Statement on Form N-2 (File Nos. 333-133715 and 811-04915)</FONT></U><FONT face="serif"> </FONT></P>
<P>
<FONT face="serif">Ladies and Gentlemen: </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We serve as special Maryland counsel to DNP Select Income Fund Inc., a Maryland corporation (the &#147;</FONT><U><FONT face="serif">Company</FONT></U><FONT face="serif">&#148;), in connection with the
Company&#146;s Registration Statement on Form N-2 (the &#147;</FONT><U><FONT face="serif">Registration Statement</FONT></U><FONT face="serif">&#148;) to be filed on the date hereof with the Securities and Exchange Commission (the
&#147;</FONT><U><FONT face="serif">Commission</FONT></U><FONT face="serif">&#148;) under the Securities Act of 1933, as amended (the &#147;</FONT><U><FONT face="serif">Act</FONT></U><FONT face="serif">&#148;), relating to the sale and issuance of
4,000 shares of Series T Auction Preferred Stock, &#36;.001 par value per share, and 4,000 shares of Series TH Auction Preferred Stock, &#36;.001 par value per share, of the Company (collectively, the "</FONT><U><FONT
face="serif">Shares</FONT></U><FONT face="serif">"), each with a liquidation preference of &#36;25,000 per share, as described in the Registration Statement. This opinion is being provided at your request in connection with the filing of the
Registration Statement.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">In connection with our representation of the Company, and as a basis for the opinion hereinafter set forth, we have examined originals, or copies certified or otherwise identified to our satisfaction,
of the following documents (collectively, the &#147;</FONT><U><FONT face="serif">Documents</FONT></U><FONT face="serif">&#148;):</FONT></P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Registration Statement, in the form in which it was transmitted to the Commission under the Act; </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The form of Articles Supplementary relating to the Shares (the &#147;</FONT><U><FONT face="serif">Articles</FONT></U><FONT face="serif"> </FONT><U><FONT face="serif">Supplementary</FONT></U><FONT face="serif">&#148;),
certified as of the date hereof by the Secretary of the Company;</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The charter of the Company (the &#147;</FONT><U><FONT face="serif">Charter</FONT></U><FONT face="serif">&#148;), certified as of a recent date by the State Department of Assessments and Taxation of
Maryland (the &#147;</FONT><U><FONT face="serif">SDAT</FONT></U><FONT face="serif">&#148;); </FONT></P>
<P>&nbsp;</P>
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<P align="left" style="page-break-before:always"></P>
<PAGE>


<div align="right">
  <p><FONT face="serif">DNP</FONT><FONT size=2 face="serif"> </FONT><FONT face="serif">S</FONT><FONT size=2 face="serif">ELECT </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NCOME </FONT><FONT face="serif">F</FONT><FONT size=2
face="serif">UND </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NC</FONT><FONT face="serif">.</FONT><BR>
    <FONT face="serif">July 5, 2006</FONT><BR>
  <FONT face="serif">Page 2</FONT></p>
  <p><FONT size=2 face="serif"> </FONT><BR>
  </p>
</div>
<P> <FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The
    Bylaws of the Company, certified as of the date hereof by the Secretary of
the Company; </FONT></P>
<P><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Resolutions adopted by the Board of Directors of the Company (the &#147;</FONT><U><FONT face="serif">Resolutions</FONT></U><FONT face="serif">&#148;)
    relating to the registration, sale and issuance of the Shares, certified
as of the date hereof by the Secretary of the Company; </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A short-form certificate of the SDAT as to the good standing of the Company, dated as of the date hereof; and </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; A certificate (the &#147;</FONT><U><FONT face="serif">Secretary&#146;s Certificate</FONT></U><FONT face="serif">&#148;) executed by T. Brooks Beittel, the Secretary of the Company, dated as of the
date hereof. </FONT></P>
<P>
<FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In expressing the opinion set forth below, we have assumed the following: </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each individual executing any of the Documents, whether on behalf of such individual or another person, is legally competent to do so. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each individual executing any of the Documents on behalf of a party (other than the Company) is duly authorized to do so. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each of the parties (other than the Company) executing any of the Documents has duly and validly executed and delivered each of the Documents to which such party is a signatory, and such party's obligations set forth therein
are legal, valid and binding. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All Documents submitted to us as originals are authentic. All Documents submitted to us as certified or photostatic copies conform to the original documents. All signatures on all such Documents are genuine. All public records
reviewed or relied upon by us or on our behalf are true and complete. All statements and information contained in the Documents are true and complete. There has been no oral or written modification or amendment to the Documents, or waiver of any
provision of the Documents, by action or omission of the parties or otherwise. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The pricing committee established by the Board of Directors in the Resolutions will adopt resolutions (the &#147;</FONT><U><FONT face="serif">Pricing Resolutions</FONT></U><FONT face="serif">&#148;) approving the Articles
Supplementary and authorizing the issuance of the Shares within the limits set forth in the Resolutions. </FONT></P>
<P>&nbsp;</P>

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<PAGE>


<div align="right">
  <p><FONT face="serif">DNP</FONT><FONT size=2 face="serif"> </FONT><FONT face="serif">S</FONT><FONT size=2 face="serif">ELECT </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NCOME </FONT><FONT face="serif">F</FONT><FONT size=2
face="serif">UND </FONT><FONT face="serif">I</FONT><FONT size=2 face="serif">NC</FONT><FONT face="serif">.</FONT><BR>
    <FONT face="serif">July 5, 2006</FONT><BR>
  <FONT face="serif">Page 3</FONT><FONT size=2 face="serif"> </FONT></p>
  <p><BR>
  </p>
</div>
<P> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Articles Supplementary
    in all material respects identical to the form included as an exhibit to
    the Secretary&#146;s Certificate will be executed by the appropriate officers
    of the Company and filed with and accepted for record by the SDAT prior to
the issuance of the Shares. </FONT></P>
<P><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The final versions of all Documents will conform in all material respects to the versions thereof submitted to us in draft form. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">Based upon the foregoing, and subject to the assumptions, limitations and qualifications stated herein, it is our opinion that: </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Company is a corporation duly incorporated and existing under and by virtue of the laws of the State of Maryland and is in good standing with the SDAT. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Shares have been duly authorized and will be validly issued, fully paid and non-assessable upon issuance and delivery in exchange for the consideration described in the Resolutions, the Pricing
Resolutions and the Registration Statement. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The foregoing opinion is limited to the substantive laws of the State of Maryland and we do not express any opinion herein concerning any other law. We express no opinion as to compliance with the securities (or &#147;blue
sky&#148;) laws of the State of Maryland. The opinion expressed herein is subject to the effect of judicial decisions which may permit the introduction of parol evidence to modify the terms or the interpretation of agreements. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We assume no obligation to supplement this opinion if any applicable law changes after the date hereof or if we become aware of any fact that might change the opinion expressed herein after the date hereof. </FONT></P>
<P>
<FONT face="serif"> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;This opinion is being furnished to you for submission to the Commission as an exhibit to the Registration Statement. </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="serif">We hereby consent to the filing of this opinion as an exhibit to the Registration Statement and to the use of the name of our firm therein under the heading &#147;Legal opinions&#148;. In giving this
consent, we do not admit that we are within the category of persons whose consent is required by Section 7 of the Act. </FONT></P>
<P align="center">
<FONT face="serif">Very truly yours, </FONT></P>

<center>
  <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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ DLA Piper Rudnick Gray Cary US LLP </FONT>
  </P>
  <p></p>
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<P align="center">&nbsp;</P>
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</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2.N
<SEQUENCE>10
<FILENAME>c42214_ex99-2n.htm
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<div align="right"><B><FONT face="serif">Exhibit n</FONT></B><BR>
</div>
<P align="center">
<FONT face="serif">CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM </FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<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&nbsp;&#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 DNP Select Income Fund
Inc. filed with the Securities and Exchange Commission in this Pre-Effective Amendment No. 1 to the Registration Statement under the Securities Act of 1933 (File No. 333-133715) and in this Amendment No. 52 to the Registration Statement under the
Investment Company Act of 1940 (File No. 811-04915).</FONT></P>
<center>
  <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;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/ ERNST &amp; YOUNG
  LLP</FONT></p>
  <p align="left">  <FONT face="serif">Chicago, Illinois</FONT><BR>
      <FONT face="serif">June 29, 2006 </FONT><BR>

</p>
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<DOCUMENT>
<TYPE>EX-99.2.S
<SEQUENCE>11
<FILENAME>c42214_ex99-2s.htm
<TEXT>

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<P align="right">
<B><FONT face="serif">Exhibit s </FONT></B></P>
<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
<B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">STEWART E. CONNER </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 26</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=73% align=center>&nbsp;</TD>
	<TD width=27% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">/s/ Stewart
            E. Conner</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right>
      <div align="left"><FONT face="serif">Name: Stewart E. Conner</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
<B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">CONNIE K. DUCKWORTH </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 27</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=71% align=center>&nbsp;</TD>
	<TD width=29% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;/s/
            Connie K. Duckworth</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Connie K. Duckworth</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">2 </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
<B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">ROBERT J. GENETSKI </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 23</FONT><SUP><FONT face="serif">rd</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=74% align=center>&nbsp;</TD>
	<TD width=26% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            Robert J. Genetski</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Robert J. Genetski</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">3 </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
<B><FONT face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">FRANCIS E. JEFFRIES </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 22</FONT><SUP><FONT face="serif">nd</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=70% align=center>&nbsp;</TD>
	<TD width=30% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            Francis E. Jeffries</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Francis E. Jeffries</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">4 </FONT></P>

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<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">NANCY LAMPTON </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT
face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 22</FONT><SUP><FONT face="serif">nd</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=71% align=center>&nbsp;</TD>
	<TD width=29% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            Nancy Lampton</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Nancy Lampton</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">5 </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
<B><FONT face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">CHRISTIAN H. POINDEXTER </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 25</FONT><SUP><FONT face="serif">th</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=70% align=center>&nbsp;</TD>
	<TD width=30% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            Christian H. Poindexter</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Christian H. Poindexter</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">6 </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">CARL F. POLLARD </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT
face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 23</FONT><SUP><FONT face="serif">rd</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=70% align=center>&nbsp;</TD>
	<TD width=30% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            Carl F. Pollard</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: Carl F. Pollard</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">7 </FONT></P>

<HR noshade  width="100%" size=4>

<P align="left" style="page-break-before:always"></P><PAGE>


<P align="center">
<B><FONT face="serif">LIMITED POWER OF ATTORNEY </FONT></B></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">KNOW ALL MEN BY THESE PRESENTS</FONT></B><FONT face="serif">, that </FONT><B><FONT face="serif">DAVID J. VITALE </FONT></B><FONT face="serif">(&#147;</FONT><U><FONT
face="serif">Principal</FONT></U><FONT 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 to any previously filed registration statements and any 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 face="serif">This Limited Power of Attorney shall be irrevocable until August 31, 2006, on which date this Limited Power of Attorney shall terminate.</FONT></P>
<P>
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<B><FONT face="serif">IN WITNESS WHEREOF</FONT></B><FONT face="serif">, Principal has executed this Limited Power of Attorney as of this 23</FONT><SUP><FONT face="serif">rd</FONT></SUP><FONT face="serif"> day of June,
2006.</FONT></P>
<P>&nbsp;</P>
<TABLE width="100%" border=0 cellpadding=0 cellspacing=0>
<TR valign="bottom">
  <TD width=74% align=center>&nbsp;</TD>
	<TD width=26% align=center nowrap>
      <div align="left">
        <div style="border-bottom:1px solid #000000"><font face="serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;/s/
            David J. Vitale</font>&nbsp; </div>
      </div></TD>
</TR>
<TR valign="bottom">
  <TD align=right>&nbsp;</TD>
	<TD align=right nowrap>
      <div align="left"><FONT face="serif">Name: David J. Vitale</FONT>&nbsp;
	    </div></TD>
</TR>
</TABLE>
<BR>
<P align="center">
<FONT face="serif">8 </FONT></P>

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